A group of individuals including Chris Richmond and Drew Schoentrup completed the acquisition of substantially all assets of Salon Media Group Inc..
August 29, 2019
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A group of individuals including Chris Richmond and Drew Schoentrup entered into an agreement to acquire substantially all assets of Salon Media Group Inc. (OTCPK:SLNM) (‘Salon’) for $5.5 million on March 6, 2019. The buyers are making the acquisition through an entity named Salon.com LLC. The purchase consideration is subject to a working capital adjustment, an earn-out payment of up to $0.5 million in the event that the net revenue of Salon during 2019 exceeds the net revenue target of $4.2 million and the assumption of certain assumed liabilities. The purchase price is payable as follows: (i) $0.55 million payable in cash at closing; (ii) $0.1 million shall be deposited with the escrow agent, (iii) $0.5 million as a deposit concurrent with execution of the term sheet for the asset purchase agreement and (iv) $3.85 million via issuance of a 10% secured promissory note, which note shall be paid in 2 equal installments on the 12 month and 24 month anniversary of the closing date. The $0.5 million deposit will be adjusted against the final purchase price. On April 15, 2019, Salon entered into a first amendment to asset purchase agreement to amend the payment terms under the technology agreement and the advertising agreement. On August 30, 2019, $650,000 cash payment was made which is in addition to the $500,000 deposit made earlier. The transaction is subject to the approval of Salon shareholders and of the buyer. Salon shareholders approved the deal on July 10, 2019. Gemma Descoteaux of Sheppard, Mullin, Richter & Hampton LLP acted as legal advisor in the transaction.
A group of individuals including Chris Richmond and Drew Schoentrup completed the acquisition of substantially all assets of Salon Media Group Inc. (OTCPK:SLNM) on August 30, 2019. Pursuant to the transaction, Deputy Editor Erin Keane was prompted to the position of editor-in-chief.
Salon Media Group, Inc. is an independent publication company. The Company covers news and politics, alongside its coverage of culture and entertainment, science and health, and food. The Company has driven the national conversation through journalism distributed across Salon.com, Salon TV, social media, news platforms, email newsletters and mobile applications. Its content, including its flagship show, Salon Talks, and other Salon TV programming, reaches an audience of approximately 10 million monthly new visitors. The Companyâs publication is free. It also offers monthly subscription for ad-free publication. The Company covers national news and politics, and science and health through investigations, insightful reporting, commentary and analysis. It covers television (TV), movies, books, entertainment and culture news through insightful reporting, criticism, commentary and analysis. Its Life Stories section features insightful commentary and essays about the human experience.