Stockhouse Inc.
TSX VENTURE : SHC

Stockhouse Inc.

November 02, 2009 16:00 ET

Stockhouse® Sells Media Assets

Signs $2,158,000 licensing contract and improves balance sheet

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2009) - Stockhouse Inc. (TSX VENTURE:SHC) today announced that it has signed and closed an asset purchase agreement to sell its media business assets and related trademarks to an investor group. Under the terms of the agreement Stockhouse will receive:

  • Purchase price of $728,000
  • A 5 year technology agreement with a value $2,158,000, to supply its financial software, tools and content to the media business
  • 4.5 year sub lease agreement for office space with a value of $242,000

As a part of the purchase price, Stockhouse will transfer $400,000 of the 18% secured debentures to the purchasers. Stockhouse has reduced its debt to a balance of $260,000 which is due November 14, 2011. As a result of this transaction the company expects revenues to be reduced by approximately $1.3 million. In addition, Stockhouse has sold all service marks, brand and trade name rights to the purchaser and intends to change its name at its AGM on December 1, 2009.

"The last year and a half has been very challenging for the advertising industry and online publishers. That coupled with the economic problems that our core advertising customers of financial services, automotive and small cap companies have faced, has contributed to significant losses for the company," stated Marcus New, Chief Executive Officer. "As a result of today's sale, Stockhouse has significantly improved its balance sheet, signed a multi-million dollar licensing contract and focused the business on its core of delivering financial software, content and wireless solutions to the financial services and media markets."

Mr. New continued, "The Company is continuing to make further progress on the restructuring of its balance sheet and expects to make more announcements in the near future."

About Stockhouse Inc.

Stockhouse is a leading provider of private labeled financial content and software solutions to media, corporate, and financial services companies. Stockgroup employs proprietary technologies which enable its clients to provide financial data streams and news combined with cutting edge fundamental, technical, productivity, and disclosure tools to their customers, shareholders, and employees at a fraction of the cost of traditional internal methods. The Stockhouse platform for web-based portfolio management and financial content is licensed to top North American brokerage firms and media companies.

Legal notice regarding Forward Looking Statements

This release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements". Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this release include that Stockhouse expects to lose approximately $1.3 million in annual revenue following the closing of the sale of its media assets. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected. More information about potential risk factors that could affect our business is included in our 10-K annual report for the year ended December 31, 2008, as amended, and our quarterly reports and other periodic filings filed from time to time and available publicly at www.sec.gov and www.sedar.com. Stockhouse undertakes no obligation and does not intend to update these forward looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date of this press release. All forward looking statements are qualified in their entirety by this cautionary statement.

To find out more about Stockhouse, Inc. (TSX-V: SHC), visit our website at www.stockgroup.com.

Neither TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Stockhouse Inc.
    Marcus New
    Chief Executive Officer
    604.331.0995 | 1.800.650.1211
    www.stockgroup.com