Horizon Travel & Lifestyle Magazine and On the GO add travel and food & beverage expertise to the Company's growing roster of news and entertainment publications
- Latest acquisition increases Company audience to more than 7.2 million1 readers monthly
- Horizon Travel & Lifestyle Magazine and On the GO bring dedicated sales team with expertise at selling integrated packages across multiple platforms
- The MediaCentral board announces leadership changes including appointment of Larry Beau to the position of Chief Executive Office and Kirk MacDonald to the role of President
TORONTO, ON / ACCESSWIRE / December 9, 2020 / Media Central Corporation Inc. (CSE:FLYY)(FSE:3AT) ("MediaCentral" or the "Company") today announced that it has entered into a letter of intent ("LOI") to acquire all of the issued and outstanding securities in the capital of Lazarus Bleau Incorporated ("LBI"), a media and marketing services company. With the acquisition of LBI, MediaCentral adds two new publications to the Company's portfolio including premiere North American travel publication, The Travel Magazine (d.b.a Horizon Travel & Lifestyle Magazine), and On the GO, a lifestyle commuter magazine distributed across the Greater Toronto Area. Additionally, the Company announced the appointment of Larry Bleau, the President and Publisher of Horizon Travel, as the CEO of MediaCentral and the promotion of Kirk MacDonald to President. The Travel Magazine and On the GO join existing MediaCentral titles NOW Magazine ("NOW"), the Georgia Straight ("Straight"), cannabis-specialty platform Canncentral and ECentralSports, a site dedicated to reporting on the rapidly growing gaming industry.
Launched over a decade ago, Horizon Travel Magazine provides cutting edge travel and lifestyle information to globetrotters throughout North America, with unique editions targeting Canada and the United States of America. Distributed through The Toronto Star, The Globe and Mail and The Wall Street Journal, the magazine has a monthly readership of 305,0002 according to MRP. On The Go had a monthly readership of 400,0002 prior to COVID-19. Combined with MediaCentral's current monthly audience of 6.5 million this acquisition positions MediaCentral as a major player in the North American publishing world.
The acquisition and new management announcement follow recent changes to MediaCentral's board of directors. Toronto-area businessmen Manos Pavlakis and David Daniels and securities and corporate lawyer Jay Vieira replaced the previous directors, including the former CEO, following their resignation on November 19.
"Under the leadership of industry veterans like Bleau and MacDonald we have the opportunity to focus on the steps necessary to drive effective change," said Manos Pavlakis, the new Chairman of the board. "This acquisition increases our audience and unites our now six publications with a powerful integrated sales team. With new leadership in place we are ready to focus on increasing shareholder value by effectively transforming MediaCentral into a profitable and successful business."
The appointment of Larry Bleau as CEO and the promotion of Kirk MacDonald to President bring vast media knowledge and experience to MediaCentral's senior management team. Prior to acquiring Horizon Magazine, Bleau was the President of NRS Media, a global media consultancy with expertise in delivering sales strategies that result in substantial new revenue growth. Bleau worked directly with Canadian media brands like Corus Entertainment, Star Media Group and more, and will leverage his experience of increasing revenue growth in his new role. Kirk MacDonald has been an integral part of the NOW and Straight team for the past 2.5 years and prior to that was the former CEO of the Denver Post and vice president for Hearst Newspapers.
"There is a tremendous amount of value and potential in both NOW and the Straight. Both are longstanding, well-respected publications, backed by smart and talented editorial teams. We are laser focused on developing the right strategies to drive revenue growth, the right culture to produce top quality journalism, and the right environment to revitalize a sales team that can collectively sell across all six of our publications. You can expect rapid growth for MediaCentral as we move into the new year," said Bleau.
Pursuant to the LOI, MediaCentral will acquire all of the issued and outstanding securities in the capital of LBI for an aggregate purchase price of $2 million (the "Purchase Price"). The Purchase Price will be satisfied through the issuance of an aggregate of 200 million common shares (the "Consideration Shares") in the capital of the Company at a deemed price of $0.01 per Consideration Share.
The proposed acquisition of LBI is a non arm's length transaction as Bleau is an officer of both MediaCentral and LBI. As such, the transaction is a related party transaction subject to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Pursuant to MI 61-101, MediaCentral will be exempted from obtaining a valuation of LBI as the value of the consideration to be received by Bleau will be less than 25% of the Company's market capitalization.
MediaCentral Media Kit; Fifth Story.com (MRP)
About Media Central Corporation Inc.
Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT) is an alternative media company situated to acquire and develop high-quality publishing assets starting with the recent acquisition of Vancouver Free Press Corp., the purchase of NOW Communications Inc. and the launch of digital cannabis platform CannCentral.com and ESports outlet ECentralSports.com. MediaCentral is consolidating and digitally monetizing the over 100 million coveted and premium consumers of the approximately 100 alternative urban publications across North America, creating the most powerful audience of influencers.
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About Vancouver Free Press Corp.,
Vancouver Free Press Corp., owns and operates Georgia Straight and straight.com. Established in 1967 as the news, lifestyle, and entertainment weekly in Vancouver, the Georgia Straight has been an integral part of the active urban West Coast lifestyle for over 50 years. Reaching over 56 million annual readers, every Thursday in print, and every day at straight.com, Georgia Straight delivers an award-winning editorial package of features, articles, and reviews. Regular coverage includes news, tech, arts, music, fashion, travel, health, cannabis, and food, plus Vancouver's most comprehensive listings of entertainment activities and special events. Vancouver Free Press Corp. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
About NOW Central Communications Inc.
NOW Central owns and operates NOW Magazine and nowtoronto.com. Since 1981 NOW has been Toronto's news and entertainment voice, published in print every Thursday, and daily at nowtoronto.com. Reaching over 25 million annual readers, NOW has been a leading publication, defining and pioneering the independent and alternative voice for more than 38 years. NOW Central Communications Inc. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
About CannCentral Inc.
With unique daily content appealing to both new and experienced cannabis consumers, Canncentral is poised to become the leading digital publisher for all things cannabis. Presenting authentic news and lifestyle content through a verified lens, Canncentral is emerging as an industry leading authority on knowledge, product and insight for cannabis enthusiasts, patients and investors around the world. Canncentral Inc. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
ECentralSports is a dynamic digital destination for eSports fans in search of the latest in news, competitive gaming coverage, analysis, events, lifestyle features and gaming culture. With a strong focus on covering cultural, artistic, and social subjects from deep within the esports world, ECentral provides the ultimate insider guide to the industry. ECentralSports is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release may include, but are not limited to, statements with respect to internal expectations, expectations with respect to estimated margins, cost structures, and cost structures in the media industry. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the media industry generally, income tax and regulatory matters; the ability of MediaCentral to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive and should carefully review the various risks and uncertainties identified in the Company's filings on SEDAR. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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SOURCE: Media Central Corporation Inc.
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