Znaimer sells some assets to ZoomerMedia and in the process tightens control

Media entrepreneur Moses Znaimer has acquired a tighter grip on control of ZoomerMediaLimited, of which he is President and CEO by selling it several media and real estate assets he controls, in return for shares in the company and $4 million in cash. 

Znaimer and his holding firm Olympus Management Limited thereby have acquired 66% of the common shares and 66% of the preferred shares of ZoomerMedia which, among other things, published Zoomer magazine. The purchase of the Znaimer assets was financed by a recent $17.6 million private placement in Zoomer by Fairfax Financial Holdings Limited.  

The acquisition price for the MZ Assets will be paid through the issuance to Moses Znaimer and Olympus Management Limited ("OML"), a company controlled by Moses Znaimer, of 4,094,970 common shares of Zoomer and 255,905,030 non-voting Series 2 Class A Preference Shares (the "Series 2 Shares"), all issued at a price of $0.10 per share and $4 million in cash. At the time of closing, OML intends to invest a further $2 million in Zoomer through the exercise of warrants for cash to acquire a further 20 million common shares of Zoomer at a price of $0.10 per share. Zoomer will also assume mortgage liabilities with respect to the Property in the principal amount of approximately $10.2 million.

Essentially,the shares were acquired by the sale to ZoomerMedia of various assets including 

• radio holdings (CFMZ-FM, the New Classical 96.3 FM and 103.1 FM and CFZM, Zoomer Radio AM740);
• a television production and distribution business MZTV Production and Distribution Inc.;
• Zoomer Management Limited, which provides management services to a variety of companies, many of which are Znaimer's directly or indirectly;
• the "Idea City" annual conference;
• an office building in downtown Toronto

Zoomer magazine has a paid circulation of about 180,000 and is estimated to sell about 12,000 copies on newsstands. Zoomer also controls CARP, Canada's largest association for the 45 plus and its online properties, with approximately 350,000 members. One of its largest properties is 50plus.com, an interlinked series of websites that target the 45+ age group.  

ZoomerMedia  publishes Zoomer magazine, associated websites and other media properties, largely in radio. Recently, the company announced the acquisition of the assets of Vision TV.