Lew Dickey’s Modern Media Seeks Extension To Complete Akazoo Purchase
Lew Dickey’s Modern Media Acquisition Corp. has announced it has been granted another deadline to complete an acquisition.
Dickey launched Modern Media Acquisition Corp. in March 2017 in partnership with Macquarie Capital. The company originally had a deadline of November 17, 2018 to close a deal or its $211 million raised must have been returned to its investors. That deadline has already been extended to February 17, 2019 and then June 17 following its announced purchase of UK based streaming music service Akazoo.
That deal, which would see Dickey serve as Chairman of the combined company based in Luxembourg, is still scheduled to close at some point in the third quarter of this year. Dickey’s company now has a new deadline of September 17 to close the deal valued at $469 million. Akazoo currently serves 25 countries in Europe, Asia, South America and Africa and has over 4 million subscribers. No plans have been stated for expansion into the United States or elsewhere since the purchase was announced.
When the purchase of Akazoo was announced Dickey commented in the press statement that he saw the company as the first piece of further consolidation in the music streaming industry, “Music streaming is one of the best secular growth stories in global media and entertainment, and Akazoo is a top global platform that we expect will benefit tremendously from an infusion of growth equity and a public currency to participate in further industry consolidation.”
Modern Media Acquisition Corp. (NASDAQ:MMDM) (“MMDM” or the “Company”), today announced that it intends to convene and then adjourn, without conducting any business, the special meeting of its stockholders to consider the extension of the date by which the Company must consummate a business combination (the “Extension Special Meeting”). The Extension Special Meeting is scheduled to be held at 11:00 a.m., local time, on June 12, 2019 and, after the planned adjournment, will reconvene at 11:00 a.m., local time, on June 14, 2019, to vote on the proposals described in the proxy statement filed by the Company with the Securities and Exchange Commission (“SEC”) on May 20, 2019 (the “Proxy Statement”). The Extension Special Meeting, and the planned reconvening of the meeting following its adjournment, will be held at the Company’s offices, located at 3414 Peachtree Road, Suite 480, Atlanta, Georgia 30326.
In connection with the adjournment of the Extension Special Meeting, the Company is extending the deadline for holders of the Company’s common stock to exercise their right to redeem their shares for their pro rata portion of the funds available in the Company’s trust account that is available in connection with the Extension Special Meeting, or to withdraw any previously delivered demand for redemption, to the 5:00 p.m., Eastern Time, on June 12, 2019 (two business days before the Extension Special Meeting).
Also in connection with the adjournment of the Extension Special Meeting, the Company is amending certain dates relating to the proposals that stockholders of the Company are being asked to consider and vote upon in the Proxy Statement:
The date by which the Company must consummate a business combination (the “Extension”) is amended to extend the date from June 17, 2019 to September 17, 2019 (the “Extended Date”) rather than August 17, 2019 as previously announced.
The date by which Continental Stock Transfer & Trust Company must liquidate the trust account established in connection with the Company’s initial public offering if the Company has not completed a business combination is amended to extend the date from June 17, 2019 to the Extended Date rather than August 17, 2019 as previously announced.
The business combination with Akazoo Limited (“Akazoo”) is expected to close in the third quarter of 2019.
The record date established for the Extension Special Meeting, May 13, 2019, will not change. If you have not submitted a proxy for use at the Extension Special Meeting, you are urged to do so promptly. No action is required by any stockholder who has previously delivered a proxy and who does not wish to revoke or change that proxy.