Monday, May 23, 2016

Tribune Publishing Gets Infusion of Cash

Tribune Publishing Co. today announced that it has entered into an agreement under which it will receive a $70.5 million growth capital investment from Nant Capital, LLC, which was founded by Dr. Patrick Soon-Shiong, in exchange for Tribune common stock.

Tribune has agreed to issue an aggregate of 4,700,000 shares of its common stock to Nant Capital at $15.00 per share to support the Company’s transformation strategy. The shares to be purchased by Nant Capital, similar to those purchased in the February 4, 2016, investment by Merrick Media, are subject to a three-year lock up. In connection with the transaction, Dr. Patrick Soon-Shiong has been invited to join the Tribune Publishing Board of Directors as Vice Chairman. He will begin serving on June 2, 2016.

Said CEO Justin Dearborn, “We are committed to completely transforming Tribune Publishing and Dr. Soon-Shiong is a tremendous addition to those efforts. He is an innovative and visionary leader with a proven ability to leverage technology and research to drive transformative change and create significant shareholder value. Tribune will benefit from Dr. Soon-Shiong’s penetrating insights and unparalleled technology experience as we execute our strategy. Nant Capital's investment demonstrates strong support for our plan and provides additional capital to accelerate our growth strategies for the benefit of our shareholders and all other Tribune stakeholders.”

Dr. Soon-Shiong
Dr. Soon-Shiong stated, "All industries go through cycles and Tribune, recognizing the vital role of technology in the future of publishing, is transitioning from a legacy newspaper company to a technology and content company. Its award-winning brands offer significant value creation potential, and I look forward to helping deliver value for shareholders by applying my technology expertise to accelerate content-monetization through the innovative Tronc platform. I grew up in apartheid South Africa. I believe it is critical to our democracy and to our way of life that we have a strong, vibrant media and that it continues to function as the fourth estate.”

Following the transaction, Nant Capital will own approximately 12.9% of Tribune Publishing’s outstanding shares, making Nant Capital Tribune’s second largest shareholder.

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