REPUBLIC PICTURES CORPORATION EXECUTES STOCK PURCHASE AND VIDEOCASSETTE DUPLICATION AGREEMENTS WITH TECHNICOLOR, INC.
REPUBLIC PICTURES CORPORATION EXECUTES STOCK PURCHASE AND VIDEOCASSETTE DUPLICATION AGREEMENTS WITH TECHNICOLOR, INC. LOS ANGELES, March 2 /PRNewswire/ -- Republic Pictures Corporation (NASDAQ: RPICA) announced today the completion and execution of definitive agreements whereby: (1) Technicolor, Inc. has acquired 200,000 newly issued shares of Republic Class A Common Stock for $3.0 million cash, or $15 per share; and (2) Technicolor is now the exclusive videocassette duplication and fulfillment company for Republic Pictures Home Video. These agreements were previously announced on February 18, 1992 as agreements in principle. As a result of the stock purchase agreement, Technicolor now owns 4.4 percent of Republic's total shares outstanding. Republic will use the proceeds of the stock issuance to repay borrowings under its bank credit facility which, together with cash flow from operations, will result in such outstanding borrowings being approximately 50 percent lower than the level of six months ago. As a result of the videocassette agreement, Republic Pictures Home Video expects to achieve meaningful cost-savings and service efficiencies. Republic Pictures Corporation is a producer and worldwide distributor of television programs, including the winners of both the Emmy and Golden Globe Awards for Best Movie/Miniseries of 1991 ("Separate But Equal" and "One Against The Wind"). The company also acquires theatrical and television productions for its worldwide television, theatrical and home video distribution operations. Republic is well-known for its extensive library of classic films and off-network television series. Republic Pictures Home Video distributes new feature films and television movies to the rental market, as well as the Republic library and special-interest titles to the sell-through market. Among RPHV's 1991 releases were "Cadence" (Charlie Sheen) and "It's a Wonderful Life - 45th Anniversary Edition." -0- 3/2/92 /CONTACT: Steve Stern of Sitrick and Company, 310-788-2850; or David Kirchheimer, senior VP and CFO of Republic Pictures, 310-302-1637/ CO: Republic Pictures Corp. ST: California IN: ENT SU:
EH-KJ -- LA031 -- 4184 03/02/92 17:06 EST
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|Date:||Mar 2, 1992|
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