Arena Group To Combine With Bridge Media Networks - Quick Facts

(RTTNews) - The Arena Group Holdings, Inc. (AREN) has signed a definitive agreement under which the company will combine with Bridge Media Networks, LLC, a subsidiary of Simplify Inventions, LLC. The assets of The Arena Group will be combined with the video programming, distribution, and production assets of Bridge Media Networks. Also, 5-Hour International Corporation Pte. Ltd. will purchase $25 million of common stock of the combined company, and The Hans Foundation, USA will purchase $25 million of preferred stock of New Arena.

The Arena Group stockholders will receive one share of common stock of New Arena for each share of The Arena Group common stock they own. Simplify and 5-Hour are expected to hold 65% of all outstanding shares of New Arena common stock.

Simplify has also agreed to purchase, from time to time at Arena's election, up to $20 million of additional common equity in New Arena, for a period of one year. The Arena Group will receive a five-year guaranteed advertising commitment of approximately $60 million aggregate value from a group of consumer brands also owned by Simplify.

The Arena Group plans to use a portion of the cash proceeds to reduce its debt by $26 million from current levels.