Fort Lauderdale, FL, May 23, 2024 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine”) (NASDAQ: MICS) – the worldwide leader in consumer karaoke products, today announced its Executive Committee of the Board of Directors has authorized management to explore a range of potentially transformational corporate transactions. The primary purpose for this initiative is to explore transactions that can potentially create immediate, sustained shareholder value.
As part of this initiative, the Company intends to explore corporate transactions that expand the existing business model beyond its current legacy consumer electronics karaoke business. In particular, the Committee has prioritized disruptive software solutions, emerging sustainability-centric technologies, and other high-impact business models. To pursue these new growth opportunities, the Company has evaluated the process for a reverse merger, acquisitions, and merger of equals transactions.
“This decision represents a major shift in our overall corporate strategy,” commented Gary Atkinson, CEO of the Singing Machine. “We are still optimistic on the long-term value opportunities for our legacy karaoke business. We believe there is a great deal of value to be unlocked in the gamification of karaoke, software and subscription-based karaoke experiences, and automotive based karaoke. All of these opportunities provide scalable lasting value potential.”
“With that said, our Board is extremely focused on delivering greater near term shareholder value. Since our uplisting to the Nasdaq two years ago, our Company has struggled to sustain shareholder value in a challenging retail environment. Recently, we have received numerous unsolicited inquiries regarding our willingness to consider a possible corporate transaction.”
“Our highest priority today is to transform the value creation potential of our Company. We are very proud to have built a Company worthy of listing on a national exchange. This is a potentially powerful asset for us to leverage to better unlock value for our shareholders in the near term,” concluded Mr. Atkinson.
About The Singing Machine
The Singing Machine Company, Inc. (NASDAQ: MICS) is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, the Company designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Their portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. The Company also has a new philanthropic initiative, CARE-eoke by Singing Machine, to focus on the social impact of karaoke for children and adults of all ages who would benefit from singing. Their products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "may", "could", "expects", "projects," "intends", "plans", "believes", "predicts", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission. The forward-looking statements are applicable only as of the date on which they are made, and the Company does not assume any obligation to update any forward-looking statements.
