Transaction Positions the Company to Move Forward with Strategic Refocus on New Products, Transformative Technology Applications and Recurring Revenue Model
Fort Lauderdale, FL, Aug. 17, 2021 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) -- the North American leader in consumer karaoke products – today announced its Board of Directors has authorized the repurchase of 19,623,155 shares of common stock previously held by its former majority shareholder.
In connection with the $10,000,000 private placement that closed on August 10, 2021, the Company will use approximately $7,100,000 of the proceeds to buy back shares held by the previous 50% majority owner. The 19,623,155 shares will be redeemed by the Company and retired to treasury as authorized but unissued. As part of the share repurchase, the Company will also be re-constituting it’s Board of Directors and appointing Gary Atkinson, Company CEO, to the Board. This is in addition to the previously disclosed appointment of Stingray, the Company’s strategic partner and a top three shareholder, to the Company’s Board. Stingray is a leading music, media, and technology provider of direct-to-consumer and B2B digital content solutions based in Montreal, Canada.
“With the completion of this transaction, we have successfully reconstituted our shareholder for the benefit of all legacy shareholders. We believe this transaction will provide the Company with the operational latitude to drive near term technology innovations that should position the Company for future growth,” commented Gary Atkinson, Company CEO. “This opportunity attracted a number of high caliber, well-respected U.S.-based funds that understand technology and capital markets. Further, buying back the majority owner’s shares solves a governance obstacle for a future uplist application to a National Exchange.”
About The Singing Machine
Singing Machine® is the worldwide leader in consumer karaoke products. The first to provide karaoke systems for home entertainment in the United States, the Company sells its products world-wide through major mass merchandisers and on-line retailers. We offer the industry's widest line of at-home karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology for singing practice, music listening, entertainment and social sharing. The Singing Machine provides consumers the best warranties in the industry and access to over 24,000 songs for streaming and download. Singing Machine products are sold through most major retailers in North America and also internationally. See www.singingmachine.com for more details.
Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2021. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
