Allegro Media Group announces new financing and the acquisition of Softland Corporation

Allegro Media Group announces new financing and the acquisition of Softland Corporation

PORTLAND, OR, May 13 /PRNewswire/ -- Allegro Media Group announced today that it has obtained up to $37 million dollars in new financing for content and other strategic acquisitions. The financing is comprised of an initial equity investment and access to a further line of equity from Canterbury Park Capital, a private equity fund; and a subordinated note and a revolving line of credit from US Bank (NYSE:USB).

Joseph Micallef, Chairman and CEO of Allegro indicated that with the financing secured by Allegro, he "certainly anticipates executing a growth and acquisition plan," adding that, "the independent sector needs to go through the same degree of consolidation that has brought the majors down from six to four, and eventually will likely bring it to three." Of particular focus for the future, Micallef noted, "Is that we will be accelerating our acquisition of content. We have been acquiring or producing content for years," he observed, "but this financing will certainly allow us to pick up both the pace and scope significantly."

Allegro was represented and assisted on the equity financing by Oliver Capital Partners Inc., of Calgary, Alberta, an M&A and corporate finance boutique specializing in Media, Entertainment and Communications.

Established by a group of business leaders and entrepreneurs, Canterbury Park is a private equity firm that acquires and invests in established and profitable small to mid-market companies. The fund seeks opportunities to make meaningful investments in businesses and shape their strategic direction, backing and working alongside their management team to further grow and expand the business.

Concurrently with the financing, Allegro announced today that it has acquired all of the outstanding shares of Softland Corporation from its founder Larry Goldberg and members of his family.

Softland is the exclusive distributor of audio and video entertainment products to the Marine Exchange Service (MCX) as well as to a number of other retail operations managed by other branches of the Armed Forces. Pat Nugent, the current CEO of Softland, will continue in his role.

Larry Goldberg, founder and the principal shareholder of Softland Corporation, welcomed the transaction and emphasized the fit between the two organizations. "Together, the two companies will have both the resources and the skills to take their service program in support of military exchanges worldwide to the next level." The transaction also represents a milestone moment for Goldberg, who will retire after 46 years in the audio and video distribution business.

Mr. Micallef described the transaction as an important milestone in the evolution and growth of Allegro, noting that "Softland's unique experience servicing the military channel provides Allegro with significant growth opportunities" and added that it "further strengthens our position as a broadly diversified and fast growing, independent media company." The combined companies will have combined revenues approaching $100 million, making Allegro one of the largest independent media companies of its kind in North America.

About Allegro Media Group

Allegro Media Group is one of the largest, vertically integrated, independent media groups in North America. The company produces and distributes a broad array of proprietary audio and video entertainment content as well as provides, on an exclusive basis, distribution and marketing services to over 400 music and video labels in both the physical and digital space.

Allegro currently distributes physical products to over 8,000 brick and mortar store fronts in a broad array of different retail channels and distributes digitally to all of the major internet sites around the world, including Apple's iTunes (Nasdaq GS: AAPL), the company's single largest digital customer. For more information please visit www.allegromediagroup.com.

Source: Allegro Media Group

CONTACT: Diane Podolak, Allegro Media Group Publicist, (718) 383-1387,
diane@allegro-media.com

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