Hollywood Media to Delist and Explore Strategic Alternatives

Green Bay, WI. January 28, 2014 – Hollywood Media Corp. (“Company”) (Nasdaq: HOLL) announced today that its board of directors has concluded that voluntarily delisting the Company’s common stock from the Nasdaq and voluntarily deregistering from the reporting requirements of the Securities Exchange Act of 1934, as amended (“Exchange Act”), are in the best interests of the Company. The Company is eligible to deregister its stock because it has fewer than 300 stockholders of record.

Accordingly, today the Company notified Nasdaq of its intent to file on February 7, 2014 a Form 25 with the Securities and Exchange Commission (the “SEC”), voluntarily delisting the Company’s common stock from Nasdaq and deregistering the Company’s common stock under Section 12(b) of the Exchange Act. The Company expects that the delisting will take effect on February 17, 2014, and at that time the Company’s shares will no longer be traded on the Nasdaq.

The Company also intends to file on February 17, 2014 a Form 15 with the SEC, deregistering the Company’s common stock under Section 12(g) of the Exchange Act and suspending the Company’s reporting obligations under Section 15(d) of the Exchange Act. Immediately upon the filing of the Form 15, the Company will no longer be obligated to file certain Exchange Act reports with the SEC.

The Company’s board of directors determined that voluntarily delisting and deregistering is in the overall best interests of the Company after carefully considering several factors, including the cost savings that the Company expects to realize as a result of the elimination of its obligation to file reports with the SEC and otherwise satisfying the rules and requirements of the SEC and Nasdaq.

Following such voluntary delisting and deregistering, the Company’s board of directors anticipates that the Company’s common stock will trade on the OTC Markets – OTC Pink Marketplace, although there can be no assurances that any trading market for the Company’s common stock will exist, and the liquidity of such trading market may be very limited.

In addition, following such voluntary delisting and deregistering, the Company’s board of directors anticipates that the Company will explore strategic alternatives that may include, among other things, a sale of all of the Company’s assets to one or more buyers.

About Hollywood Media Corp.

Hollywood Media Corp. is comprised primarily of an Ad Sales division and an Intellectual Property division based in Green Bay, Wisconsin.

Disclosures: Long HOLL

9 Comments to Hollywood Media to Delist and Explore Strategic Alternatives

  1. Greg's Gravatar Greg
    January 28, 2014 at 2:12 pm | Permalink

    What are your thoughts?

    • Mariusz Skonieczny's Gravatar Mariusz Skonieczny
      January 28, 2014 at 2:51 pm | Permalink

      Obviously they are trying to liquidate the company which is what I have been waiting for. Now the question is at what price.

      • Jim Oakley's Gravatar Jim Oakley
        January 28, 2014 at 7:08 pm | Permalink

        What price range would you deem acceptable?

        • Mariusz Skonieczny's Gravatar Mariusz Skonieczny
          January 28, 2014 at 7:48 pm | Permalink

          At this price the market is valuing MovieTickets.com at $20 million. So anything above this would be nice. However, Hollywood Media also has about $170 million of Net Operating Losses. Since they are looking at strategic alternatives, someone could buy HOLL for these NOLs. How much would someone pay for them? I don’t know $10 million, $20 million. Again anything above zero would be nice. It is really difficult to predict how much they can get but it is pretty safe to say that at these price levels, we should not get less than the market cap. Also, I know for a fact that they are buying shares.

          • JJ's Gravatar JJ
            February 15, 2014 at 2:28 am | Permalink

            I have been accumulating shares coming in. so when Monday comes, it will be traded on pink sheet instead (or not at all)? What price do you think will be realistic? I hope much higher, of course.

  2. Josh's Gravatar Josh
    January 28, 2014 at 10:53 pm | Permalink

    I’m surprised there are less than 300 holders of the stock.

  3. Mariusz Skonieczny's Gravatar Mariusz Skonieczny
    February 15, 2014 at 9:17 am | Permalink

    JJ,

    Right now it is trading for very close to cash but they are acquiring shares. At this price there is not much downside.

  4. Cal's Gravatar Cal
    February 16, 2014 at 8:33 am | Permalink

    I’m a new student to the investing world and have been following this HOLL case.
    Got some stupid questions and hope you can shed some wisdom:
    If I were to hold onto HOLL shares and it gets delisted and becomes OTC, what should we expect in terms of realizing the value? Because given such a small shareholder base, I wonder if we’ll get low-balled for a privatization offer if that’s the plausible case?

    • Mariusz Skonieczny's Gravatar Mariusz Skonieczny
      February 16, 2014 at 10:10 am | Permalink

      Anytime you delist you reduce liquidity. This means that volatility might increase because if you have a seller he might be able to drive the price down on little volume. The same is true for a buyer that can drive it up on low volume. The company is delisting to save money. They are not doing it to screw you and I by privatizing it. However could it happen? Yes but I doubt it because of the kind of shareholder base.

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