DallasNews Corporation (DALN), a Texas-based publishing company with a market capitalization of approximately $40 million, has amended the sale agreement for its North Plant Property, according to a recent SEC filing.
The property, which includes TDMN's print facility and surrounding land in Plano, Texas, is in the process of being sold to 2201 Luna Road, LLC. According to InvestingPro analysis, the company is currently trading near its 52-week high of $7.86, with shares up over 107% in the past six months.
The original purchase and sale agreement, dated December 16, 2024, allowed for an inspection period ending January 17, 2025, with a planned closing date of February 1, 2025. The amendment, made on Monday, grants the purchaser the option to extend both the inspection period to January 31, 2025, and the closing date to February 28, 2025.
This extension is contingent upon the purchaser notifying TDMN by 5:00 p.m. on January 17, 2025, and releasing $500,000 of the deposit to TDMN, which will be nonrefundable except in specific circumstances of default by TDMN. InvestingPro data indicates the company is currently burning through cash quickly, making this deposit particularly significant for its financial position.
This strategic amendment offers additional flexibility for the purchaser and ensures a portion of the deposit is secured by DallasNews Corporation. The transaction details, as outlined in the amendment, provide that the $500,000 released from the deposit will be fully earned by TDMN and nonrefundable, safeguarding a portion of the sale proceeds for the company.
DallasNews Corporation, previously known as A. H. Belo Corp, has its shares listed on The Nasdaq Stock Market under the ticker DALN. The company, which is known for its publication "The Dallas Morning News," is headquartered in Dallas, Texas. Notable for investors, the company maintains an impressive 8.59% dividend yield and has maintained dividend payments for 14 consecutive years, as revealed by InvestingPro's comprehensive analysis, which includes 10+ additional key insights available to subscribers.
In other recent news, DallasNews Corporation faces potential delisting from the Nasdaq Stock Market due to non-compliance with the minimum stockholders' equity requirement, despite recent operational improvements. The company has until late November 2024 to appeal this decision, which it intends to do.
In financial updates, DallasNews Corporation reported a GAAP net loss of $3.9 million for Q3 2024, a significant increase from the previous year's $1.4 million loss. This loss is largely attributed to the company's transition to a smaller printing facility and significant headcount reductions. However, the company has seen a rise in digital subscription rates and digital subscribers, indicating a strategic shift towards digital platforms.
The company's digital-only subscriptions have grown by 13.5%, adding over 3,100 new digital subscribers since early September. DallasNews Corporation is exploring options for proceeds from the sale of the Plano printing facility, with a focus on sustainable profitability and shareholder returns. The company's next earnings update in March 2025 will provide further insights into its financial health and strategic direction.
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