PRINCETON, N.J., June 11, 2014 /PRNewswire/ -- AMREP
Corporation (NYSE: AXR) today reported that it and its indirect
subsidiaries, Kable Distribution Services, Inc. ("Kable
Distribution") and Palm Coast Data LLC ("Palm Coast"), have entered
into a comprehensive settlement agreement with Heinrich Bauer (USA) LLC ("Bauer"), which resolves all matters
relating to the two distribution agreements between Kable
Distribution and Bauer that will terminate on June 30, 2014.
As part of the agreement, AMREP has agreed to issue to Bauer
825,000 shares of its common stock, which represents approximately
10.3% of the outstanding shares of common stock of AMREP following
such issuance, with Bauer agreeing to not sell or transfer such
shares for a period of six months. In return, Bauer has extended
the term of its fulfillment agreement with Palm Coast to at least
December 31, 2018 and released all
claims, except for certain continuing obligations, that Bauer may
have against Kable Distribution, Palm Coast and AMREP.
Additional details on the settlement agreement are provided in
AMREP's Current Report on Form 8-K filed with the Securities and
Exchange Commission on June 11,
2014.
"We welcome Bauer as a significant shareholder of AMREP and
thank it for extending its current relationship with Palm Coast,"
said Edward B. Cloues, II, Chairman
of AMREP. "We have had extensive discussions with Bauer over the
past six months and are pleased that we have been able to settle
our issues on an amicable basis and resolve the substantial net
working capital deficit that existed with respect to the two
distribution agreements."
"Building on many years of receiving valuable services from Palm
Coast, we are pleased to be continuing and extending our
relationship with Palm Coast," said Hubert
Boehle, President and Chief Executive Officer of Bauer. "We
look forward to a continuing positive relationship with AMREP in
our new capacity as a significant shareholder."
About Bauer – Heinrich
Bauer (USA) LLC is part of
the Bauer Media Group, one of the most successful media companies
in the world. More than 600 magazines, over 400 digital products,
and 50 radio and TV stations reach millions of people around the
globe. It has more than 11,000 employees in 17 countries. In the
U.S., Bauer sells more magazines at retail than any other magazine
publishing company.
About AMREP – Its Media Services operations, conducted by
its Kable Media Services, Inc. and Palm Coast Data LLC
subsidiaries, distribute magazines to wholesalers and provide
subscription and product fulfillment and related services to
publishers and others, and its AMREP Southwest Inc. subsidiary is a
major holder of real estate in New
Mexico.
Forward-Looking Statements
This press release may contain certain forward-looking
statements, including statements with regard to continuing
commercial relationships and the potential of AMREP's businesses
and stock. Words such as "believes," "expects,"
"projects," and "future" or similar expressions are intended to
identify forward-looking statements. These
forward-looking statements are subject to the inherent
uncertainties in predicting future results and
conditions. Certain factors could cause actual results
to differ materially from those projected in these forward-looking
statements, and some of these factors are enumerated in the filings
AMREP makes with the Securities and Exchange
Commission. AMREP undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
SOURCE AMREP Corporation