Canadian entertainment firm Blue Ant Media will implement a reverse initial public offering (IPO) by acquiring certain assets from independent production studio Boat Rocker Media, the companies announced on Monday.
The transaction will see Blue Ant acquire Insight Productions, Jam Filled Entertainment and Proper Television, with Boat Rocker subsequently acquiring all shares of Blue Ant at a price of $2.25 per share, representing a 125 percent premium of last Friday’s closing price of Boat Rocker.
Boat Rocker already trades on the Toronto Stock Exchange; the merger with Blue Ant will allow the latter to become a publicly-traded company almost instantaneously. When the deal closes, Blue Ant shareholders will own a 73.5 percent stake in the new public venture, with Boat Rocker shareholders owning the rest.
Michael MacMillan, the sole owner of Blue Ant, will serve as the CEO of the new publicly-traded company. Blue Ant has its roots in television production, but has evolved to become a programmer and distributor of streaming channels like “Drag Race Universe,” “Love Pets” and “Haunt TV,” among others. It also operates a number of Canadian specialty channels, including two under license from the BBC.
“We are confident that this transaction will unlock significant value for all shareholders,” MacMillan said. “Through the combination of our public listing, a strengthened balance sheet, and significant net cash post-transaction, we believe that we are strategically positioned for profitable global growth, both organically and through M&A.”
Separately, three Boat Rocker executives — co-founders Ivan Schneeberg and David Fortier, and CEO John Young — will acquire Boat Rocker Studios through a management buyout, the companies said on Monday. Boat Rocker Studios produces independent films and TV series for leading services and networks like the BBC, Sky New Zealand and Netflix.
