JAKKS Pacific, Inc. (NASDAQ: JAKK) (the “Company”) announced today that it has received an additional non-binding expression of interest to acquire all of the shares of the Company’s common stock for an indicated price of between $0.85-$0.90 per share on a fully diluted basis.
As previously announced in the Current Report on Form 8-K filed on August 9, 2019 announcing the Company’s successful conclusion of the Recapitalization (as defined therein) transaction with the Ad Hoc Group (as defined therein), Oasis (as defined therein) and Wells Fargo (as defined therein), the Company continued to engage in discussions with another party that previously made a non-binding proposal to acquire all of the shares of the Company’s common stock for an indicated price of $0.80 per share on a fully diluted basis. Also as previously announced in such Current Report, such discussions were in addition to the prior negotiations with Hong Kong Meisheng Cultural Company Limited (“Meisheng”) regarding its proposed purchase of newly issued shares of the Company’s common stock, and followed delays in achieving the necessary approvals for the Meisheng transaction, including approvals from Chinese regulatory authorities.
The Company and its advisors have engaged in discussions with the interested parties regarding the non-binding proposals and have furnished information to them in connection with due diligence activities. All such recent discussions are in their early stages and no agreements or understandings have been reached with respect to such proposals, and the indicated prices described above may also change in a final offer, if made.
Stephen Berman, CEO and co-founder of the Company, noted that “As I have said, the Recapitalization transaction allowed us to continue to pursue our business objectives with renewed vigor and resolve. We remain committed to executing our business plan in the months and years ahead. At the same time, however, the Company is exploring the alternative transactions described in this announcement.”
No assurance can be given that the ongoing discussions and negotiations described above will result in a consummation of a transaction with any of the parties identified above, or with any other party, and that even if a transaction is consummated, that its final terms will resemble the terms described above.