Market Overview

ZoomerMedia Limited Signs Agreements to Purchase Media and Real Estate Assets


TORONTO, ONTARIO--(Marketwire - Jan. 25, 2010) - ZoomerMedia Limited ("Zoomer") (TSX VENTURE:ZUM) today announced that it has entered into agreements to acquire several media and real estate assets currently owned directly or indirectly by Zoomer's President, Chief Executive Officer and majority shareholder, Moses Znaimer. The proposed acquisition of these assets was previously announced in connection with the private placement by Fairfax Financial Holdings Limited ("Fairfax") of $17.6 million into Zoomer. The assets to be acquired (the "MZ Assets") include:

(a) all of the issued and outstanding shares in the capital of MZMedia Inc. ("MZMI"), with the primary assets of MZMI being the CRTC licenses for the radio undertakings CFMZ-FM, the New Classical 96.3 FM and 103.1 FM and CFZM, Zoomer Radio AM740;

(b) all of the issued and outstanding shares in the capital of MZTV Production and Distribution Inc. ("MZTV P&D"), with the primary assets of MZTV P&D being a television production and distribution business;

(c) all of the issued and outstanding shares in the capital of Zoomer Management Limited ("Zoomer2"), with the primary assets of Zoomer2 being the management services operation providing creative, production, communications and financial administration services to a variety of companies;

(d) all of the assets and undertakings of the business used exclusively and predominantly in connection with the operation of the annual Canadian conference known as and operating under the name "ideaCity"; and

(e) an office building situated on 2.6 acres of commercial property in downtown Toronto, known municipally as 64 Jefferson Avenue, Toronto Ontario (the "Property").

The closing of the acquisition of the MZ Assets is subject to a number of conditions including as previously announced the completion of the acquisition by Zoomer of certain assets from VisionTV and the completion by Fairfax of a $17.6 million private placement for 44,025,901 common shares and 131,974,099 non-voting Series 1 Class A Preference Shares (the "Series 1 Shares") of Zoomer, all to be issued at a purchase price of $0.10 per share.

The acquisition price for the MZ Assets will be paid through the issuance to Moses Znaimer and Olympus Management Limited ("OML"), a company controlled by Moses Znaimer, of 4,094,970 common shares of Zoomer and 255,905,030 non-voting Series 2 Class A Preference Shares (the "Series 2 Shares"), all issued at a price of $0.10 per share and $4 million in cash. At the time of closing, OML intends to invest a further $2 million in Zoomer through the exercise of warrants for cash to acquire a further 20 million common shares of Zoomer at a price of $0.10 per share. Zoomer will also assume mortgage liabilities with respect to the Property in the principal amount of approximately $10.2 million.

All Class A Preference Shares are non-voting and the holders of the Class A Preference Shares on any distribution of assets of Zoomer among its shareholders for the purpose of winding up its affairs, shall be entitled to receive from the assets and property of Zoomer for each Class A Preference Share (with all series within the class treated equally) held by the holder $0.10 plus all declared and unpaid dividends thereon, before any amount shall be paid or any property or assets of Zoomer distributed to the holders of the common shares. The Series 2 Shares can be exchanged at the option of Moses Znaimer or Zoomer into common shares of Zoomer at any time provided that upon such conversion Zoomer will continue to satisfy the public float share distribution requirements of the TSX Venture Exchange.

Upon closing of all of the foregoing transactions, Moses Znaimer, a resident of Toronto, Ontario, will control 165,157,970 common shares of Zoomer, representing 66.28% of the total common shares outstanding at the time of closing and 255,905,030 Series 2 Shares, representing 65.98% of the outstanding Class A Preference Shares at the time of closing. Zoomer understands that Moses Znaimer intends to acquire the common shares and Series 2 Shares for investment purposes and may purchase additional common shares of Zoomer from time to time in accordance with applicable laws. A copy of the early warning report filed by Moses Znaimer pursuant to applicable Canadian securities laws may be obtained on SEDAR or by contacting Navin Khanna, at 416-368-6200.

The completion of the acquisition of MZMI subject to CRTC approval. The completion of all of the transactions described above is subject to shareholder approval, TSX Venture Exchange approval and to the extent any of the transactions are considered related party transactions, minority shareholder approval. Assuming all requisite approvals are secured, all of the foregoing transactions are expected to close in spring of 2010.

About ZoomerMedia Limited

Zoomer publishes Zoomer Magazine, the largest paid circulation magazine in Canada for the mature market. Published nine times a year, Zoomer Magazine has a paid circulation of approximately 180,000 and places approximately a further 30,000 copies on newsstands.

Zoomer also derives royalty revenue through the provision of exclusive marketing and membership services to CARP, A New Vision of Aging for Canada.

Zoomer is also Canada's leading provider of online content targeting the 45 plus age group. It's portfolio of web sites and electronic newsletters delivers over 2 million page per views per month. The key property is, which offers a wide range of information, entertainment, community connection (forums, dating, blogs) and commerce together with four electronic newsletters (health, money, travel, lifestyle), each of which has over 120,000 opt-in subscribers.

Zoomer also produces and manages, the online home of CARP. With approximately 350,000 members, CARP is Canada's largest association for the 45 plus. Zoomer also produces CARP Action Online, an electronic newsletter for CARP members.

Cautionary note on forward looking statements

Completion of the transactions described above is subject to a number of conditions, including TSX Venture Exchange acceptance and disinterested shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements made in this report are 'forward-looking statements' which may include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words 'believe', 'anticipate', 'expect', 'estimate', 'project', 'will be', 'will continue', 'will likely result' or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in filings by ZoomerMedia Limited with provincial securities commissions. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, the following:

- the risks inherent in magazine publishing generally;

- the risks inherent in the operation of Internet media properties generally;

- the Company's dependency on a few large customers;

- the competition within the media industry for the baby boom generation's business;

- the risks associated with governmental regulation of the publishing and internet businesses;

- the results of legal claims made by or against the Company;

- the risk of managing the current revenue growth rate;

- the dependence of the business on the continuing operation of its computer systems; and

- the dependence on key personnel.

Given these risks, and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. ZoomerMedia Limited does not intend and does not assume any obligation to update these forward-looking statements.

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at