Canada‘s Blue Ant Media will go public after finishing a deal for listed compatriot Boat Rocker Media.
The settlement will see the Michael MacMillan-owned Blue Ant itemizing on the Toronto Inventory Alternate by a reverse takeover of Boat Rocker, whose administration is concurrently shopping for out its studios enterprise.
Boat Rocker, which makes the likes of The Nice Canadian Baking Present, is already listed on the TSX, and the settlement will see it buying all excellent shares in Blue Ant in alternate for subordinate voting shares within the ensuing enterprise.
As soon as the deal closes, the corporate can be renamed Blue Ant Media Company and, topic to regulatory approval, start buying and selling on the TSX, with Blue Ant shareholders proudly owning about 73.5% of the corporate and Boat Rocker shareholders taking the remainder. MacMillan, who based Blue Ant, would be the CEO, with Brad Martin the chairman.
The reverse takeover – through which a privately-owned firm buys a listed one – permits the acquirer to checklist on the inventory market with out holding a standard IPO. The deal, primarily based on a share worth of C$2.25 per Blue Ant share, is a 125% premium on Boat Rocker’s closing worth on Friday.
Additionally a part of the settlement, Blue Ant will inherit three Boat Rocker producers in Canada – Perception Productions, Jam Crammed Leisure, and Correct Tv, which collectively delivered C$118M in income in 2024, primarily based on unaudited outcomes.
Blue Ant is headquartered in Toronto, and has places of work Los Angeles, New York, Washington, London, Sydney, and Singapore. It generated C$196M in revenues within the fiscal yr ending August 31, 2024, a 16% improve year-over-year, and made C$18M in internet revenue.
The brand new-look Blue Ant will obtain C$25.5M at least money stability and dealing capital, round $11.6M from The Preliminary Group’s possession of Boat Rocker and several other different monetary ensures.
Fairfax Monetary Holdings, a Blue Ant shareholder, has agreed to assist the providing by a C$20M backstop dedication, which would scale back the possession stakes of Blue Ant and Boat Rocker shareholders if accomplished. It is going to additionally purchase Boat Rocker’s minority curiosity in The Preliminary Group for round C$17M.
“That is an opportunistic second for Blue Ant to go public, paving the way in which for long-term worth creation,” stated MacMillan. “We’re assured that this transaction will unlock vital worth for all shareholders. Via the mixture of our public itemizing, a strengthened stability sheet, and vital internet money post-transaction, we consider that we’re strategically positioned for worthwhile world development, each organically and thru M&A.”
