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Image Acquisition Amendment 3: Collect $1M

7 Apr, 2009 By: Erik Gruenwedel

Image Entertainment

Image Entertainment’s protracted purchase by Nyx Acquisition was officially extended until April 20 after both parties agreed in principle to a third amendment of the amended merger agreement.

Image shareholders in February formally approved the acquisition, which called for Nyx to pay $2.75 per share in cash ($60.2 million), in addition to assuming all outstanding debt, for a total purchase price of $100 million.

Under the latest extension, Chatsworth, Calif.-based Image April 7 received a $1 million payment into its operating account from Nyx.

The San Francisco-based affiliate of Q-Black LLC previously agreed to contribute $1.5 million to the business interruption fee account for the extension. Nyx had paid $2.5 million into the account for prior amended closures.

Martin Greenwald, chairman of the board of Image, said the protracted merger closure represented a win-win situation for both companies. He said the $1 million paid to Image would be applied directly toward working capital, which in turn, he said added liquidity to the company and benefited Nyx.

Joe Bretz, CEO of Nyx Acquisitions, said the $1 million payment to Image provided “added opportunities for growth” for the distributor, in addition to demonstrating Nyx’s continued support and commitment to closing the merger.

Image shares climbed nearly 30% to $1.58 per share in midday trading.

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