IDW Media to Increase Investment in Original Content Acquisition Following Capital Raise

Rhea-AI Summary

IDW Media Holdings (NYSE American:IDW) announced the successful completion of a capital raise totaling approximately $10.4 million in gross proceeds. The company plans to utilize these funds to enhance its acquisition of original intellectual property (IP), improve direct-to-consumer marketing tools, and refine business analytics. CEO Ezra Rosensaft emphasized the strategic focus on developing original content to meet market demand. Following the offering, IDW now has 12.4 million shares of Class B Common stock outstanding, with a notable participation of approximately 25% from its Board and management.

Positive

• Successfully raised approximately $10.4 million, enhancing financial stability.
• Plans to invest in original content acquisition to drive growth.
• Management and board participation in the offering indicates confidence.
• Transitioning to an asset-light balance sheet for improved operational efficiency.

Negative

• None.

LOS ANGELES, CA and NEWARK, NJ / ACCESSWIRE / August 10, 2021 / IDW Media Holdings, Inc. (NYSE American:IDW), an integrated media company, today commented on the successful completion last week of its a capital raise in conjunction with the uplist of its Class B Common stock to the NYSE American.

The Company intends to use the proceeds to significantly enhance its acquisition of original content (intellectual property ("IP")) through partnerships with authors and creators, to upgrade its database and enhance other DTC marketing tools, to refine business intelligence analytics and for general corporate purposes.

"In this past year, we've driven a sea change in IDW's strategy, operations and finances," said Ezra Rosensaft. IDW's Chief Executive Officer. "Strategically, we are focused on the acquisition and development of original IP to meet the huge and growing appetite for engaging original stories and compelling characters in our key markets. With the capital raise successfully concluded, we are well positioned to accelerate volume expansion into additional high-growth genres including enhancements to our TV development slate. As we expand our IP pipeline, we're working to extend our market reach through exciting new content distribution platforms."

The underwritten public offering generated gross proceeds of approximately $10.4 million and net proceeds of $9.6 million after deducting underwriting discounts, commissions, and certain other offering expenses. IDW's Board of Directors, management and associated entities participated significantly, contributing approximately 25% of the offering. Following the offering, the Company has 12.4 million shares of Class B Common stock outstanding.

"Operationally, we are well along in the process of building out the operational teams and capabilities to accelerate execution," Rosensaft continued. "Financially, we expect to continue to improve our bottom-line results. We have made tremendous progress toward eliminating our debt while transitioning to an asset-light balance sheet."

"We will now leverage these accomplishments and our upside potential as an NYSE American listed company with the increased visibility and investor reach that exchange listing entails," Rosensaft added. "All in all, IDW is now well-positioned to create value for our stockholders as we pursue the exciting growth opportunities available to both our publishing and entertainment businesses."

About IDW:
IDW is an integrated media company providing compelling stories and characters for global audiences. Our IDW Publishing and IDW Entertainment businesses acquire IP for holistic franchise development across comics and graphic novels, television, games, merchandise and other entertainment platforms and leverage established stories from our creative partners.

Investor Contact:
IDW Media Investor Relations
investor.relations@idwmh.com

SOURCE: IDW Media Holdings Inc.

View source version on accesswire.com:
https://www.accesswire.com/659102/IDW-Media-to-Increase-Investment-in-Original-Content-Acquisition-Following-Capital-Raise

FAQ

What was the purpose of IDW's recent capital raise?

IDW raised capital to enhance its acquisition of original content, improve marketing tools, and refine business analytics.

How much money did IDW raise in its capital offering?

IDW raised approximately $10.4 million in gross proceeds from the capital offering.

What will IDW do with the proceeds from the capital raise?

The proceeds will be used for acquiring IP, upgrading marketing strategies, and for general corporate purposes.

How many shares of Class B Common stock are outstanding after the offering?

IDW has 12.4 million shares of Class B Common stock outstanding following the offering.

Who participated in the capital raise offering alongside IDW's management?

IDW's Board of Directors, management, and associated entities contributed approximately 25% of the offering.