Emmis Announces Final Results of Tender Offer

Rhea-AI Summary

Emmis Corporation (OTC: EMMS) announced the final results of its cash tender offer to buy up to 1 million shares of its Class A common stock. The offer, which expired on August 5, 2022, witnessed 163,621 shares tendered and not withdrawn. Emmis waived its condition of at least 250,000 shares being tendered and will purchase all submitted shares for approximately $550,000, representing about 1.8% of its Class A common stock and 1.5% of total equity. Following this, Emmis will have 10,535,653 shares outstanding. The company may also acquire additional shares at or above $3.75 each.

Positive

• Emmis waived the requirement for 250,000 shares to be tendered, allowing the buyback to proceed.
• The company successfully purchased 163,621 shares, reducing the total outstanding shares, which may enhance shareholder value.
• Approximately $550,000 will be spent on the purchase, showing Emmis's commitment to returning value to shareholders.

Negative

• Only 163,621 shares were tendered, significantly below the 1 million shares available for purchase, which may indicate a lack of investor interest.

INDIANAPOLIS, Aug. 11, 2022 /PRNewswire/ -- Emmis Corporation (OTC: EMMS) ("Emmis") announced today the final results of its cash tender offer to purchase up to 1 million shares of its Class A common stock at prices of not greater than $3.75 nor less than $2.75 per share. The tender offer expired at 5:00 P.M., New York City Time, on Friday, August 5, 2022. 

Based on the final count by Broadridge, Inc., the Depositary for the tender offer, a total of 163,621 shares of Emmis' Class A common stock were properly tendered and not withdrawn. Emmis has elected to waive the condition that at least 250,000 shares be tendered. Therefore, in accordance with the terms and conditions of the tender offer, Emmis will purchase all of the shares tendered for an aggregate price of approximately $550,000, excluding fees and expenses relating to the tender offer. The shares to be purchased represent approximately 1.8% of the issued and outstanding shares of Emmis' Class A common stock and 1.5% of Emmis' total issued and outstanding equity, which includes the issued and outstanding shares of Emmis' Class B common stock. The shares purchased in the tender offer will be canceled by Emmis. After giving effect to the purchase and cancellation of the shares, Emmis will have 10,535,653 shares of common stock issued and outstanding consisting of 8,946,778 shares of its Class A common stock and 1,588,875 shares of its Class B common stock.

Subject to applicable law, Emmis reserves the right to purchase additional shares of its Class A common stock in open market or private purchases at prices at or above $3.75 share.

Shareholders who have questions or would like additional information about the tender offer may contact the Information Agent for the tender offer, Alliance Advisors, LLC, toll-free at (855) 325-6673.

This news release contains, in addition to historical information, forward-looking statements related to the tender offer, including the timing, total number of shares to be purchased under the tender offer and the process for the tender offer. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks, which could cause actual results to differ materially from those described in the forward-looking statements. Information about potential factors that could affect Emmis's business, results of operations and financial condition is included in the Risk Factors sections of the Offer to Purchase. All forward-looking statements included in this document are based on information available to Emmis as of the date of this document, and except to the extent Emmis may be required to update such information under any applicable securities laws, Emmis assumes no obligation to update such forward-looking statements.

Emmis Corporation (OTC Markets: EMMS) currently owns 4 FM and 2 AM radio stations in New York and Indianapolis, as well as Indianapolis Monthly magazine. Emmis also owns a controlling interest in Digonex, which provides dynamic pricing solutions across multiple industries, and Lencore, the world leader in high-quality sound masking solutions for offices and other commercial applications. With its sale of most of its radio stations, Emmis recently changed its name from Emmis Communications Corporation to Emmis Corporation.

Contact:

Ryan A. Hornaday,
Chief Financial Officer
Tel: 317-684-6549
rhornaday@emmis.com

View original content:https://www.prnewswire.com/news-releases/emmis-announces-final-results-of-tender-offer-301603906.html

SOURCE Emmis Corporation

FAQ

What were the results of Emmis Corporation's tender offer?

Emmis Corporation completed a tender offer to purchase 163,621 shares of its Class A common stock at an aggregate price of approximately $550,000.

When did Emmis's cash tender offer expire?

The cash tender offer expired at 5:00 P.M. on August 5, 2022.

How many shares of Emmis stock were purchased in the tender offer?

Emmis purchased 163,621 shares, representing about 1.8% of its Class A common stock.

What is the current number of outstanding shares for Emmis after the tender offer?

After the tender offer, Emmis has 10,535,653 shares of common stock outstanding.

Will Emmis Corporation buy more shares after the tender offer?

Yes, Emmis reserves the right to purchase additional shares at or above $3.75 each in open market or private transactions.