ALBANY, N.Y., Feb. 18, 2020 (GLOBE NEWSWIRE) — 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.
|Trans World Entertainment||Financial Relations Board|
|Edwin Sapienza||Marilynn Meek|
|Chief Financial Officer||()|
|(518) 452-1242||(212) 827-3773|
Source: Trans World Entertainment Corp.