Stockhouse sells assets, trademarks to investor group
2009-11-02 16:32 ET - News Release
Mr. Marcus New reports
STOCKHOUSE SELLS MEDIA ASSETS
Stockhouse Inc. has signed and closed an asset purchase agreement to sell its media business assets and related trademarks to an investor group. Under the terms of the agreement Stockhouse will receive:
- Purchase price of $728,000;
- A 5 year technology agreement with a value $2,158,000, to supply its financial software, tools and content to the media business
- 4.5 year sublease agreement for office space with a value of $242,000
As a part of the purchase price, Stockhouse will transfer $400,000 of the 18 per cent secured debentures to the purchasers. Stockhouse has reduced its debt to a balance of $260,000 which is due Nov. 14, 2011. As a result of this transaction the company expects revenues to be reduced by approximately $1.3-million. In addition, Stockhouse has sold all service marks, brand and trade name rights to the purchaser and intends to change its name at its annual general meeting on Dec. 1, 2009.
"The last year and a half has been very challenging for the advertising industry and on-line publishers. That coupled with the economic problems that our core advertising customers of financial services, automotive and small-cap companies have faced, has contributed to significant losses for the company," stated Marcus New, chief executive officer. "As a result of today's sale, Stockhouse has significantly improved its balance sheet, signed a multimillion dollar licensing contract and focused the business on its core of delivering financial software, content and wireless solutions to the financial services and media markets."
Mr. New continued, "The Company is continuing to make further progress on the restructuring of its balance sheet and expects to make more announcements in the near future."
Legal notice regarding Forward Looking Statements