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Image, Nyx Agree to Merger Amendment

9 Apr, 2009 By: Erik Gruenwedel

Image Entertainment

Image Entertainment and Nyx Acquisition April 9 agreed to a third amendment of the amended merger agreement between Nyx and Image, officially extending Nyx’s acquisition of Image to April 20.

The acquisition calls 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. Image is slated to receive payment of $1 million payment from Nyx, a unit of San Francisco-based Q-Black LLC, by the end of the business day April 10.

The $1 million payment is in addition to the current $2.5 million business interruption fee, $1 million of which Nyx released to Image March 24 in connection with the execution of the second amendment to the merger agreement.

The $1 million payments are not refundable to Nyx and have no effect on the purchase price under the merger agreement. The $1.5 million balance of the business interruption fee account is currently held in trust for the benefit of Image.

Image shares fell 9 cents to $1.45 per share in midday trading April 9.

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