SOURCE: Tix Corporation

November 22, 2010 09:00 ET

Tix Corporation Announces Agreement to Sell Its Live Entertainment Subsidiary

STUDIO CITY, CA--(Marketwire - November 22, 2010) - Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticket brokerage services and branded event merchandising, today announced that it has entered into a Securities Purchase Agreement to sell its wholly-owned Live Entertainment subsidiary, Tix Productions, Inc. ("TPI"), to members of TPI's management. 

Under the terms of the agreement, the Company will sell 100% of the outstanding capital stock of TPI to TPI's management in exchange for approximately 2.3 million shares of the Company's common stock. TPI will also pay the Company up to $487,000 from distributions it receives from the Company's previous investments in "American Idiot" and "Rain - A Tribute to the Beatles on Broadway," both of which are currently performing on Broadway. Tix Corporation reserved the right to entertain additional acquisition interest in TPI and may accept a superior offer through December 3, 2010. 

The Company announced on September 13, 2010 that it had retained the investment banking firm, B. Riley & Co., LLC ("B. Riley") as its financial advisor to explore certain strategic alternatives including the sale of TPI. After considering TPI's potential and consulting with B. Riley, among other things, the Company determined that the sale of TPI was in the best interests of its stockholders as it would allow the Company to focus on its core discount ticket operations. B. Riley performed a full market test, which included contacting and gauging interest from a wide range of strategic and financial buyers. B. Riley received no offers for TPI that matched or exceeded the offer from TPI's management. B. Riley provided a fairness opinion to the Company in connection with this transaction that indicated the consideration to be received by the Company is fair, from a financial point of view. 

Mitch Francis, Chairman and CEO of the Company, said, "This divestiture will allow us to focus more of our attention on our thriving core discount ticketing business. We are excited about several internal growth initiatives and plan on taking advantage of a number of available opportunities in the discount ticketing market."

About TIX Corporation

Tix Corporation (OTCQX: TIXC) is an entertainment company providing discount ticketing services and branded event merchandising. It currently operates eleven discount ticket stores in Las Vegas under the Tix4Tonight marquee, and offers up to a 50 percent discount for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining. The Company's Exhibit Merchandising operation is engaged in branded merchandise development and sales activities related to museum exhibitions and other events, including the King Tutankhamun, Cleopatra and Real Pirates tours, and selling themed souvenir memorabilia and collectors' items in specialty stores in conjunction with the specific events and venues such as its store within the Cairo Museum that will be opening soon. 

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. 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 various filings with the Securities and Exchange Commission and the OTCQX. The Company assumes no obligation to update these forward-looking statements. 

Contact Information

  • Contact:
    Steve Handy
    CFO
    818-761-1002