Tix Corporation Enters Into Binding Letter Agreement and Concludes Its Strategic Review Process

Rhea-AI Summary

Tix Corporation (OTC Pink: TIXC) announced a binding letter agreement with CEO Mitch Francis amid ongoing challenges due to COVID-19. The entertainment market in Las Vegas has not recovered, impacting the Company's operations since March 2020. Key terms of the agreement include Francis purchasing 6,250,000 shares at $0.08 per share and a potential option for a $200,000 funding line. Additionally, he will initiate a tender offer to buy at least one-third of outstanding shares at the same price, while waiving his salary and benefits until May 2021.

Positive

• Mitch Francis purchased 6,250,000 shares, demonstrating confidence in the Company.
• Francis's tender offer will cover at least one-third of outstanding shares at $0.08, potentially stabilizing stock value.

Negative

• Operations remain suspended since March 2020 due to COVID-19, affecting liquidity.
• The Las Vegas entertainment market is still shut down, delaying potential recovery.

LAS VEGAS, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (OTC Pink: TIXC), a leading provider of discount ticketing services, today announced it has entered into a binding letter agreement with its Chief Executive Officer and significant stockholder of the Company, Mitch Francis, and concluded its previously announced strategic review process.

As previously announced, due to COVID-19, the Company suspended its operations in March 2020. The Las Vegas entertainment market remains principally shut down and is yet to recover. The Company exhausted its liquidity resources but is hopeful the agreement with Mr. Francis will help sustain the Company through the return of a sufficient level of business in Las Vegas to support reopening operations.

The material terms of the binding letter agreement between the Company and Mr. Francis are as follows:

• Mr. Francis has purchased 6,250,000 shares of the Company’s common stock for $500,000, or $0.08 per share and, following such purchase owns directly and beneficially a total of 10,588,530 shares of the Company’s common stock.
• Mr. Francis has provided the Company with an option to call up to an additional $200,000 in funding at any time during the next twenty-four months if the Board determines the funds are necessary to maintain the Company’s viability. The Company’s option includes the discretion to accept the funding in the form of debt (a three-year loan at 6% interest only) or equity (issuance of additional shares at $0.08 per share).
• Mr. Francis has agreed to commence a tender offer with respect to and possibly acquire at least one-third of all outstanding shares of the Company at $0.08 per share within 45 days of February 3, 2021. Mr. Francis has agreed to pay all costs and expenses of the tender offer.
• Mr. Francis agreed to waive his salary and all benefits through May 2021. From June through December 2021, Mr. Francis’ annual salary level will be reduced to $100,000 with no paid benefits. Mr. Francis has agreed to waive all unpaid salary and benefits to date.

About Tix Corporation

Tix Corporation provides discount ticketing services. Due to COVID-19, the Company suspended its operations in March 2020, which included the closure of its seven discount ticket stores in Las Vegas under its Tix4Tonight marquee and its online ticket sales site, www.tix4tonight.com, which offers up to a 50 percent discount for shows, concerts, attractions, and tours, as well as discount dining and shopping offers. The Company continually monitors the Las Vegas marketplace to determine when and if it will be able to commence operations again.

Safe Harbor Statement

Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about our future revenues and financial position. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the Company’s filings with the OTC Markets. The Company assumes no obligation to update these forward-looking statements. A copy of the Company’s reports for the twelve months ended December 31, 2019 can be found on the Company website at www.tixcorp.com or at www.otcmarkets.com.

Contact:

Steve Handy
Chief Financial Officer
Tix Corporation
818-761-1002

FAQ

What is the recent announcement by Tix Corporation regarding Mitch Francis?

Tix Corporation announced a binding letter agreement with CEO Mitch Francis, which includes a stock purchase and a tender offer.

How has COVID-19 affected Tix Corporation's operations?

Tix Corporation suspended its operations in March 2020 due to COVID-19, and the Las Vegas entertainment market has not yet recovered.

What are the terms of the agreement between Tix Corporation and Mitch Francis?

Mitch Francis will purchase shares at $0.08, provide a $200,000 funding option, and initiate a tender offer for outstanding shares.

What financial impact does the recent announcement have on Tix Corporation?

The agreement aims to sustain Tix Corporation through ongoing operational challenges, but the suspension of operations remains a significant concern.