Trans World Entertainment Corporation Announces Shareholder Approval of the Sale of its FYE Segment
February 18 2020 - 8:00AM
Trans World Entertainment (Nasdaq – TWMC, “TWEC” or the “Company”)
announced today that at a special shareholders meeting held on
February 17, 2020 more than two-thirds of the Company’s
shareholders approved the previously-announced sale of
substantially all of the assets constituting its For Your
Entertainment (“FYE”) segment to a subsidiary of Sunrise Records
and Entertainment Ltd. (“Sunrise”), the parent of Sunrise Records
in Canada and HMV Records in the United Kingdom, for $10 million in
cash, subject to a net inventory and other adjustments, plus the
assumption of certain liabilities (the “Transaction”).
The closing of the Transaction is subject to the
satisfaction or waiver of customary closing conditions set forth in
the purchase agreement, including the receipt of certain third
party consents which are expected shortly. All of the
proceeds from the Transaction will be used to repay outstanding
indebtedness and to satisfy other unassumed liabilities.
Going forward, the Company plans to focus on the
operation of its wholly owned subsidiary, etailz, Inc.
Cautionary Statement Regarding
Forward-Looking Statements
This document includes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Certain statements in this communication are
forward-looking statements. The statements contained in this
document that are not statements of historical fact may include
forward-looking statements that involve a number of risks and
uncertainties.
We have used the words “anticipate”, “believe”,
“could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”,
“project”, and similar terms and phrases, including references to
assumptions, in this document to identify forward-looking
statements. These forward-looking statements are made based on
management’s expectations and beliefs concerning future events and
are subject to uncertainties and factors that could cause actual
results to differ materially from the results expressed in the
statements. The following factors are among those that may cause
actual results to differ materially from the Company’s
forward-looking statements: the risk that the Transaction may
not close; the risk that the Transaction may adversely affect the
Company’s business and the price of the Company’s common stock; the
effect of the closing of the Transaction on the Company’s business
relationships, operating results and business generally; risks that
the Transaction disrupts current plans and operations and the
potential difficulties in employee retention as a result of the
Transaction; the outcome of any legal proceedings that may be
instituted against the Company related to the Transaction;
unexpected costs, charges, expenses, or liabilities relating to the
Transaction; the Company’s ability to operate as a going-concern
following the closing of the Transaction; and other risks described
in the Company’s filings with the SEC, such as its Quarterly
Reports on Form 10-Q and Annual Reports on Form
10-K. The
reader should keep in mind that any forward-looking statement made
by us in this document, or elsewhere, pertains only as of the date
on which we make it. New risks and uncertainties come up from
time-to-time and it’s impossible for us to predict these events or
how they may affect us. In light of these risks and uncertainties,
you should keep in mind that any forward-looking statements made in
this document or elsewhere might not occur.
Contact: |
|
Trans World Entertainment |
Financial Relations Board |
Edwin Sapienza |
Marilynn Meek |
Chief Financial Officer |
(mmeek@frbir.com) |
(518) 452-1242 |
(212) 827-3773 |
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