Toronto-headquartered Kew Media Group has parted ways with Chief Financial Officer Geoff Webb and announced a strategic review, following what the publicly-traded content producer and distributor says were “inaccurate reports” regarding the company’s working capital.
Webb had been Kew’s CFO since March 2017 and according to the company’s website had taken “a leading role in the company’s multi-faceted finance, banking, corporate development and other operations.”
In a press release issued Wednesday, Kew announced that its Board of Directors had formed a special committee of independent directors, chaired by David Fleck, “to examine strategic alternatives for the Company.”
“This follows expressions of interest from a number of parties concerning potential transactions involving the Company. These alternatives could include, among other things, the sale of part or all of the Company, a merger or other business combination with another party, new capital initiatives or other strategic transactions,” reads the release.
“Kew is a leading content platform comprising highly coveted assets in its global portfolio of production and sales companies,” Fleck added. “The Board’s goal is to maximize value in the best interests of Kew and all its stakeholders.”
The company says it’s conducting a detailed review with the support of its financial and legal advisors and is currently in discussions with lenders in regards to its short-term liquidity requirements.
Michael Corrigan, former Senior Executive Vice-President and CFO at Metro Goldwyn Mayer, has been appointed interim CFO. Prior to MGM, Corrigan was a senior partner in the Entertainment, Media and Communications practice at Price Waterhouse LLP, and more recently was at Sonar Entertainment/RHI.
Kew stock has been volatile for the last few months, plummeting from a high of CAD $7.35 in April to just under $3 in mid-November after a lacklustre quarterly report. Kew shares closed the market at $2.50 Wednesday, and were trading up slightly Thursday at $2.62.
With offices in Toronto, London, Los Angeles, New York, and Sydney, Kew develops, produces and distributes more than 2,000 new hours of content every year, and manages a library of more than 14,000 hours of content. The company launched its initial public offering in 2016.
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