Printer Friendly

Tribune Publishing signs agreement for USD70.5m growth capital investment with Nant Capital.

M2 EQUITYBITES-May 24, 2016-Tribune Publishing signs agreement for USD70.5m growth capital investment with Nant Capital


Tribune Publishing Co (NYSE:TPUB), a diversified media and marketing-solutions company, announced on Monday that it has entered into an agreement under which it will receive a USD70.5m growth capital investment from Nant Capital LLC in exchange for Tribune common stock.

Under this agreement, Tribune has agreed to issue an aggregate of 4,700,000 shares of its common stock to Nant Capital at USD15.00 per share to support its transformation strategy.

Reportedly, the shares to be purchased by Nant Capital, similar to those purchased in the 4 February 2016 investment by Merrick Media, are subject to a three-year lock up.

Also, in connection with the transaction, Dr. Patrick Soon-Shiong, founder of Nant Capital, has been invited to join the Tribune Publishing's board of directors as vice chairman, effective 2 June 2016.

Following this transaction, Nant Capital will own approximately 12.9% of Tribune Publishing's outstanding shares, making Nant Capital Tribune's second largest shareholder.

In addition, Nant Capital has entered into customary standstill arrangements, including limitations on additional share acquisitions and an agreement to vote its shares in connection with the election of directors and any change of control transaction involving the company proportionally to how all other shares of Tribune common stock are voted.

Further, Tribune Publishing also announced it has entered into a term sheet with NantWorks LLC for a co-exclusive, non-transferable, fee-bearing license pursuant to which Tribune will receive access to over 100 machine vision and artificial intelligence technology patents for news media applications as well as access to and use of studio space made available by NantStudio LLC, a subsidiary of NantWorks LLC.

Under the term sheet, Tribune Publishing will issue to NantStudio 333,333 shares of Tribune common stock and will be entitled to retain the first USD80m in revenues derived from the licensed patents royalty free, after which Tribune will pay to NantWorks a 6% royalty on subsequent revenues.

((Comments on this story may be sent to

COPYRIGHT 2016 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2016 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:May 24, 2016
Previous Article:DineEquity opens first IHOP restaurant in Panama City, Panama.
Next Article:Air Lease places two more new Airbus A350-900 aircraft with Malaysia Airlines.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters