Stockholders of TheStreet Inc. approved the company's pending sale to a subsidiary of TheMaven Inc., a coalition of content producers with a shared digital platform, for $16.5 million in cash or about $3.09 per share.
Upon closing of the deal, TheStreet stockholders will receive a final special cash distribution of $17.9 million or $3.35 per share as well as a contingent value right, which will entitle each holder to receive a pro rata portion of funds from an outstanding escrow agreement entered into by the company in connection with the sale of BoardEx and TheDeal.
The distribution will be made of record Aug. 7 and payable to stockholders Aug. 12, the financial news and information company said. The escrowed funds are currently scheduled to be released after Jan. 31, 2020, and the company currently estimates that the amount to be released from such escrow is $520,000 or 9 cents per share.
The merger is expected to close after the market closes Aug. 7.
Moelis & Co. LLC was financial adviser to TheStreet on the transaction and Lake Street Capital Markets LLC rendered a fairness opinion to the board with respect to the merger consideration. Orrick Herrington & Sutcliffe LLP was legal adviser.