Strong Global Entertainment Announces Closing of Sale of Strong/MDI for Approximately $30 Million
Strong Global Entertainment (NYSE: SGE) has completed the sale of Strong/MDI Screen Systems to Saltire Holdings for approximately $30 million. The transaction is expected to result in a net pre-tax financial statement gain exceeding $25 million. Strong Global received $29.5 million in total consideration, comprising $0.8 million in cash, $9.0 million in Saltire preferred shares, and $19.7 million in Saltire common shares.
Following the sale, Strong Global now holds about 37% of Saltire's outstanding common shares. This move aligns with Strong Global's strategy to streamline operations, increase liquidity, and drive shareholder value. The company may consider acquiring or selling Saltire securities in the future, depending on market conditions and other factors.
Strong Global Entertainment (NYSE: SGE) ha completato la vendita di Strong/MDI Screen Systems a Saltire Holdings per circa 30 milioni di dollari. Si prevede che la transazione genererà un guadagno netto pre-tasse sul bilancio di oltre 25 milioni di dollari. Strong Global ha ricevuto 29,5 milioni di dollari in totale, suddivisi in 0,8 milioni di dollari in contante, 9,0 milioni di dollari in azioni preferenziali di Saltire e 19,7 milioni di dollari in azioni ordinarie di Saltire.
Dopo la vendita, Strong Global detiene circa il 37% delle azioni ordinarie in circolazione di Saltire. Questa mossa è in linea con la strategia di Strong Global di razionalizzare le operazioni, aumentare la liquidità e generare valore per gli azionisti. L'azienda potrebbe considerare l'acquisizione o la vendita di titoli Saltire in futuro, a seconda delle condizioni di mercato e di altri fattori.
Strong Global Entertainment (NYSE: SGE) ha completado la venta de Strong/MDI Screen Systems a Saltire Holdings por aproximadamente 30 millones de dólares. Se espera que la transacción resulte en una ganancia neta antes de impuestos de más de 25 millones de dólares. Strong Global recibió 29,5 millones de dólares en total, que incluyen 0,8 millones de dólares en efectivo, 9,0 millones de dólares en acciones preferentes de Saltire, y 19,7 millones de dólares en acciones comunes de Saltire.
Tras la venta, Strong Global ahora posee aproximadamente el 37% de las acciones comunes en circulación de Saltire. Este movimiento está en línea con la estrategia de Strong Global para optimizar operaciones, aumentar la liquidez y potenciar el valor para los accionistas. La empresa podría considerar adquirir o vender valores de Saltire en el futuro, dependiendo de las condiciones del mercado y otros factores.
스트롱 글로벌 엔터테인먼트 (NYSE: SGE)가 강/MDI 스크린 시스템을 Saltire Holdings에 약 3천만 달러에 판매한 것을 완료했습니다. 이 거래는 세전 재무제표상의 이익이 2천5백만 달러를 초과할 것으로 예상됩니다. 스트롱 글로벌은 총 2천9백5십만 달러를 받았으며, 이 중 80만 달러는 현금, 900만 달러는 Saltire의 우선주, 1천9백7십만 달러는 Saltire의 보통주로 구성됩니다.
판매 후 스트롱 글로벌은 Saltire의 보통주 약 37%를 보유하고 있습니다. 이번 조치는 스트롱 글로벌의 운영 효율화, 유동성 증가, 주주 가치를 증대시키기 위한 전략과 일치합니다. 이 회사는 향후 시장 여건과 기타 요인에 따라 Saltire 증권을 취득하거나 판매하는 것을 고려할 수 있습니다.
Strong Global Entertainment (NYSE: SGE) a complété la vente de Strong/MDI Screen Systems à Saltire Holdings pour environ 30 millions de dollars. La transaction devrait entraîner un gain net avant impôts sur l'état financier dépassant 25 millions de dollars. Strong Global a reçu 29,5 millions de dollars en contrepartie totale, comprenant 0,8 million de dollars en espèces, 9,0 millions de dollars en actions préférentielles Saltire, et 19,7 millions de dollars en actions ordinaires Saltire.
Après la vente, Strong Global détient désormais environ 37% des actions ordinaires en circulation de Saltire. Ce mouvement s'inscrit dans la stratégie de Strong Global pour rationaliser ses opérations, accroître sa liquidité et maximiser la valeur pour les actionnaires. L'entreprise pourrait envisager d'acquérir ou de vendre des titres de Saltire à l'avenir, en fonction des conditions du marché et d'autres facteurs.
Strong Global Entertainment (NYSE: SGE) hat den Verkauf von Strong/MDI Screen Systems an Saltire Holdings für ungefähr 30 Millionen Dollar abgeschlossen. Es wird erwartet, dass die Transaktion zu einem netto vor Steuern finanziellen Gewinn von über 25 Millionen Dollar führen wird. Strong Global erhielt eine Gesamtsumme von 29,5 Millionen Dollar, die sich aus 0,8 Millionen Dollar in bar, 9,0 Millionen Dollar in Saltire-Vorzugsaktien und 19,7 Millionen Dollar in Saltire-Stammaktien zusammensetzt.
Nach dem Verkauf hält Strong Global nun etwa 37% der ausstehenden Stammaktien von Saltire. Dieser Schritt stimmt mit der Strategie von Strong Global überein, die Betriebsabläufe zu straffen, die Liquidität zu erhöhen und den Aktionärswert zu steigern. Das Unternehmen könnte in Zukunft erwägen, Saltire-Wertpapiere zu erwerben oder zu verkaufen, abhängig von den Marktbedingungen und anderen Faktoren.
- Sale of Strong/MDI Screen Systems for $29.5 million
- Expected net pre-tax financial statement gain exceeding $25 million
- Acquisition of 37% stake in Saltire Holdings
- Increased liquidity and potential for shareholder value growth
- Divestment of a business unit may impact overall revenue stream
Insights
The sale of Strong/MDI Screen Systems for
The transaction structure is noteworthy:
$0.8 million in cash$9.0 million in Saltire preferred shares$19.7 million in Saltire common shares
This structure gives SGE a
For investors, this deal represents a significant shift in SGE's asset composition and could lead to a reevaluation of the company's valuation. The market will likely focus on how SGE plans to utilize the proceeds and leverage its new Saltire ownership position to drive long-term shareholder value.
This transaction marks a pivotal moment for Strong Global Entertainment in the entertainment industry landscape. By divesting Strong/MDI, SGE is refocusing its business model and potentially freeing up resources for core operations or new ventures. The deal's structure, with a significant portion in Saltire shares, indicates SGE's confidence in Saltire's future prospects and the screen systems market.
The entertainment industry, particularly cinema, has faced challenges post-pandemic. This move could be seen as SGE adapting to changing market dynamics. The
Investors should watch for:
- How SGE reinvests the proceeds
- Any shifts in SGE's strategic focus
- Performance of Saltire and its impact on SGE's financials
This deal may trigger a reassessment of SGE's market position and growth strategy, potentially influencing investor sentiment and the stock's valuation in the short to medium term.
Mooresville, NC, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Strong Global Entertainment, Inc. (NYSE: SGE) (“Strong Global”) and Fundamental Global Inc. (Nasdaq: FGF, FGFPP) (“Fundamental Global”) are pleased to announce the closing of the previously announced sale of Strong/MDI Screen Systems, Inc. (“MDI”) from Strong Global to Saltire Holdings Ltd (“Saltire”).
Mark Roberson, Chief Executive Officer of Strong Global, commented, “We are pleased to announce the closing of the sale of MDI. This is one element of our previously announced strategy to streamline operations, increase liquidity and drive shareholder value. We expect the transaction to result in a net pre-tax financial statement gain in excess of
At closing, and after a working capital adjustment, Strong Global received total consideration of
Prior to the Closing, Strong Global did not own or control any securities of Saltire. Strong Global received 1,972,723 common shares and 900,000 series A preferred shares of Saltire as consideration under the transaction.
Strong Global may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, general economic and industry conditions, Saltire’s business and financial condition, and/or other relevant factors, and Strong Global may develop such plans or intentions in the future.
A copy of the Early Warning Report to be filed by Strong Global in connection with the transaction described above will be available on its SEDAR+ profile at www.sedarplus.ca.
About Strong Global Entertainment, Inc.
Strong Global Entertainment, Inc., a majority owned subsidiary of Fundamental Global Inc., is a leader in the entertainment industry, providing mission critical products and services to cinema exhibitors and entertainment venues for over 90 years.
About Fundamental Global Inc.
Fundamental Global Inc. (Nasdaq: FGF, FGFPP) and its subsidiaries engage in diverse business activities including reinsurance, asset management, merchant banking, manufacturing and managed services.
The FG® logo and Fundamental Global® are registered trademarks of Fundamental Global LLC.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are therefore entitled to the protection of the safe harbor provisions of these laws. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “budget,” “can,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “evaluate,” “forecast,” “goal,” “guidance,” “indicate,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “possibly,” “potential,” “predict,” “probable,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” “view,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or other variations thereon or comparable terminology. In particular, discussions and statements regarding the Company’s future business plans and initiatives are forward-looking in nature. We have based these forward-looking statements on our current expectations, assumptions, estimates, and projections. While we believe these to be reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance, or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, and may impact our ability to implement and execute on our future business plans and initiatives. Management cautions that the forward-looking statements in this release are not guarantees of future performance, and we cannot assume that such statements will be realized or the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation: risks associated with our inability to identify and realize business opportunities, and the undertaking of any new such opportunities; our lack of operating history or established reputation in the reinsurance industry; our inability to obtain or maintain the necessary approvals to operate reinsurance subsidiaries; risks associated with operating in the reinsurance industry, including inadequately priced insured risks, credit risk associated with brokers we may do business with, and inadequate retrocessional coverage; our inability to execute on our investment and investment management strategy, including our strategy to invest in the risk capital of special purpose acquisition companies (SPACs); our ability to maintain and expand our revenue streams to compensate for the lower demand for our digital cinema products and installation services; potential interruptions of supplier relationships or higher prices charged by suppliers in connection with our Strong Global business; our ability to successfully compete and introduce enhancements and new features that achieve market acceptance and that keep pace with technological developments; our ability to maintain Strong Global’s brand and reputation and retain or replace its significant customers; challenges associated with Strong Global’s long sales cycles; the impact of a challenging global economic environment or a downturn in the markets; the effects of economic, public health, and political conditions that impact business and consumer confidence and spending, including rising interest rates, periods of heightened inflation and market instability; potential loss of value of investments; risk of becoming an investment company; fluctuations in our short-term results as we implement our new business strategy; risks of being unable to attract and retain qualified management and personnel to implement and execute on our business and growth strategy; failure of our information technology systems, data breaches and cyber-attacks; our ability to establish and maintain an effective system of internal controls; our limited operating history as a public company; the requirements of being a public company and losing our status as a smaller reporting company or becoming an accelerated filer; any potential conflicts of interest between us and our controlling stockholders and different interests of controlling stockholders; potential conflicts of interest between us and our directors and executive officers; risks associated with our related party transactions and investments; and risks associated with our investments in SPACs, including the failure of any such SPAC to complete its initial business combination. Our expectations and future plans and initiatives may not be realized. If one of these risks or uncertainties materializes, or if our underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements are made only as of the date hereof and do not necessarily reflect our outlook at any other point in time. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect new information, future events or developments.
Investor Relations Contacts:
IR@strong-entertainment.com
investors@fundamentalglobal.com
FAQ
What was the total consideration Strong Global Entertainment (SGE) received for the sale of Strong/MDI?
How much of Saltire Holdings does Strong Global Entertainment (SGE) now own after the transaction?
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Why did Strong Global Entertainment (SGE) sell Strong/MDI Screen Systems?
