The collaboration includes finalizing a long-term, exclusive licensing agreement and signing a new securities purchase agreement with Byborg.
As per the licensing deal, Byborg will license specific Playboy digital intellectual property and manage Playboy Plus, Playboy TV (both linear and digital), and the Playboy Club.
The recently announced licensing agreement ensures annual minimum guaranteed payments of $20 million to PLBY Group over an initial 15-year term, totaling $300 million, plus 25% of the net profits from these businesses.
The agreement also includes the potential for up to nine 10-year extensions, contingent on Byborg meeting certain operational milestones.
PLBY entered into a securities purchase agreement with an affiliate of Byborg, under which the company will sell $25 million in newly issued, unregistered shares of its common stock at $1.50 per share, provided the stock price is at or below $1.65 per share prior to the anticipated filing of the preliminary proxy for a special meeting of stockholders.
This share sale is contingent upon approval from the company’s stockholders at the special meeting.
The purchase and sale of the additional stock in both scenarios will be contingent on PLBY Group’s stockholders approving the deal at a special meeting. The transaction is expected to close promptly after receiving stockholder approval.
Ben Kohn, Chief Executive Officer of PLBY Group, said, “Once the transition is completed (expected to be by June 30, 2025), we will focus on expanding our licensing business and investing in our brand. We expect to take significant costs out of PLBY Group, achieve meaningful EBITDA and be cash flow positive.”
As previously announced on November 5, 2024, Byborg purchased 14.9 million newly issued, unregistered shares of common stock of PLBY Group for a price of $1.50 per share, for a total purchase price of $22.35 million.
Byborg also entered into a standstill agreement capping its total holdings in PLBY Group at 29.99%. As a result of the initial equity purchase, beginning in 2025, PLBY Group will appoint a director nominated by Byborg and will also add a mutually agreed new independent director.
Price Action: PLBY shares are up 27.7% at $1.80 at the last check Monday.
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Image: Courtesy of PLBY Group.
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