May 9, 2018
IRVINE, Calif., May 09, 2018 (GLOBE NEWSWIRE) — Propel Media, Inc. (OTCPink:PROM), a performance focused digital media and advertising company, today announced that the Company paid approximately $4.4 million in cash to fully satisfy future obligations of $18.5 million.
Pursuant to the Company’s financing agreement for its term loan, the Company was obligated to make an additional payment to the lenders of $12.5 million in January 2019. The Company has renegotiated this fee down to $3.0 million and immediately paid it, thereby fully satisfying the obligation for the deferred fee. Also, on May 9, 2018, the Company made a voluntary principal prepayment of the term loan in the amount of $2 million, which reduced the total term loan principal amount outstanding to $53.2 million.
Similarly, in connection with the 2015 merger between the Company and Future Ads LLC, the Company had an obligation to pay the former members of Future Ads a total of $6 million immediately after paying the above mentioned $12.5 million fee to the Company’s lenders. On May 9, 2018, the Company reached an agreement with the former Future Ads members to reduce such deferred payment obligation to $1.44 million from $6 million. On the same date, the Company paid the $1.44 million amount to the former Future Ads members in full satisfaction of the deferred payment obligation.
“I am delighted to announce the early payoff of $4.4 million to fully satisfy what had been $18.5 million of future obligations. These transactions, along with the additional voluntary principal reduction of the term loan, have significantly strengthened the Company’s overall financial position,” said Marv Tseu, Chief Executive Officer of Propel Media.
Further details concerning these transactions can be found in the Company’s Form 8-K filed with the Securities and Exchange Commission on May 9, 2018.
Propel Media connects digital marketers with unique audiences through intent-based technology that delivers superior performance with measurable results. We “Do Digital Differently” with a distinctive approach to digital powered by proprietary contextualization technology and a unique supply of ad inventory. Headquartered in Irvine, California, Propel Media is distinguished by its ability to deliver consistent results and its commitment to providing the highest level of client services to its partners.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those statements regarding Propel Media’s capital structure, ability to execute its operating plan, anticipated financial flexibility and future financial performance and any other statements that are not statements of historical fact. These statements may be identified, without limitation, by the use of forward-looking terminology such as “anticipates”, “expects,” “will” or comparable terms or the negative thereof. Such statements are based on management’s current estimates, assumptions that management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof. Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are beyond the control of Propel Media and not all of which are known to Propel Media, including, without limitation those risk factors described from time to time in Propel Media’s reports filed with the SEC. Among the factors that could cause Propel Media’s actual results to differ materially are: loss of key advertising customers; inability to acquire new advertising customers; limitations on its ability to acquire new users profitably or at all; inability to protect its intellectual property; inability to comply with the covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations; continued compliance with government regulations; and general economic conditions. Further, investors should keep in mind that Propel Media’s financial results in any particular period may not be indicative of future results. Propel Media is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required by law.