STUDIO CITY, CA, July 05, 2019 (GLOBE NEWSWIRE) -- Tix Corporation (“Tix” or the “Company”) (OTCQX: TIXC)
You may be contacted by, receive a letter from or see a press release made by a dissident stockholder, Haren S. Bhakta or his fund HSB Capital Partners, L.P. (“HSB”), announcing an intention to nominate individuals to our board of directors. Tix Corporation (“Tix”) urges you to disregard communications and materials from Mr. Bhakta, HSB or their affiliates.
During the past two years, Tix has been forced to expend valuable resources defending itself and its stockholders from Mr. Bhakta’s destructive actions, which, as detailed below, have included harassment of Tix employees, interference with Tix’s business, and other dubious behavior. Mr. Bhakta now seeks to nominate himself and other unqualified individuals for election to the Tix board of directors at the 2019 annual meeting of stockholders.
Tix previously notified HSB that its notice purporting to nominate Mr. Bhakta and these other unqualified individuals is incomplete and deficient pursuant to our bylaws. Tix therefore wishes to advise stockholders that because of the aforesaid deficiencies, any proxy or vote with respect to HSB’s nominees, including Mr. Bhakta, may not be counted at our 2019 annual meeting of stockholders.
Tix anticipates that the 2019 annual meeting of stockholders will be held in September, where stockholders will be asked to vote upon the election of directors to the board as well as ratifying the selection of an auditor for the fiscal year.
Tix Returns to Profitability
Management Continues to Cut Expenses and Raise Revenue
Separate and apart from the destructive actions previously conducted by Mr. Bhakta, Tix is pleased to announce that current management has made tremendous improvements despite the challenging Las Vegas market conditions. After a period of prolonged and tough negotiations, management was able to resume selling tickets to the MGM Cirque du Soleil shows and create a new, stronger working relationship with MGM as well as Cirque du Soleil.
As a result of the efforts outlined above, as well as other actions taken by management, the Company has generated positive Adjusted EBITDA for eight of the last nine months including the months prior to the return of the Cirque tickets (Please note, Adjusted EBITDA excludes all expenses related to the actions taken against the interests of the Company and its stockholders by Haren S. Bhakta and HSB Capital). The Company generated positive net income of $50,000 in the first quarter of 2019, compared to a net loss of ($717,000) in the prior year period. Cash flows from operations improved to $137,000 in the first quarter of 2019, compared to cash used in operations of ($639,000) in the prior year period, and, the Company’s stock has increased approximately 200% this year since reporting the return of the MGM Cirque du Soleil shows and profitable current financial statements. Management anticipates sequential quarterly improvement in operating income and cash flows throughout the remainder of this year. Unfortunately, this improved outlook is threatened by the actions of Mr. Bhakta.
Haren S. Bhakta Has a History of Destructive Actions Directed at Tix
Mr. Bhakta started accumulating shares for himself and his family members in the first half of 2017. During this period Mr. Bhakta sent a series of communications to Tix requesting that he be granted seats on our board. While management was in the process of communications with Mr. Bhakta, a series of events occurred that led us to conclude that Mr. Bhakta would not be an appropriate selection for our board of directors, or (for that matter) any public company. Those events included, among other things: Mr. Bhakta’s use of surveillance equipment to spy on Tix’s booths and the Tix corporate office; misrepresenting himself as a job applicant at our corporate office without an appointment; and harassing Tix employees, both in person and through social media.
Also in 2017, Mr. Bhakta informed Tix that he had started his own fund, HSB, and announced the formation of a dissident group, comprised of his wife and members of his extended family and friends.
HSB’s Proposed Changes Don’t Add Value
and Will Negatively Affect Stockholders
As previously stated, management has made significant progress in cutting expenses and raising revenue. Tix wishes to thank its stockholders for their patience and perseverance as our management undertook these efforts. Despite the actions of Mr. Bhakta, Tix’s financial health has dramatically improved and the prospects for the business are good.
Tix has always been open to the idea of adding new directors who can add value, but HSB’s nominees are not capable nominees. Mr. Bhakta and HSB’s other three nominees have no knowledge or background in any facet of our business, nor do they have any contacts in the Las Vegas entertainment industry, or any background in ticketing or retail operations. If a stockholder intended to nominate a slate of qualified candidates for election to the board of a publicly traded company, it should seek to nominate candidates with backgrounds which make them a good fit to oversee and help grow the company business. Mr. Bhakta has proposed the exact opposite.
Tix will remain focused on its growth plan and on enhancing stockholder value for the benefit of all concerned and will not be distracted from its goals by Mr. Bhakta or HSB. Tix urges stockholders to assist it in this effort by disregarding Mr. Bhakta (and HSB) to dissuade him from continuing his destructive actions.
If you have any questions or would like to discuss any of the contents of this press release, please contact Steve Handy, CFO of Tix Corporation, at (818) 761-1002. The Management team thanks you again for your continued support.
About Tix Corporation
Tix Corporation (OTCQX:TIXC) provides discount ticketing services. It currently operates nine discount ticket stores in Las Vegas under its Tix4Tonight marquee and its online ticket sales site, www.tix4tonight.com, which offers up to a 50 percent discount for shows, concerts, attractions, and tours, as well as discount dining and shopping offers.
Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about our future revenues and financial position. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the Company's filings with the OTC Markets. The Company assumes no obligation to update these forward-looking statements. A copy of the Company’s reports for the twelve months ended December 31, 2018, can be found on the Company website at www.tixcorp.com or www.otcmarkets.com.
Steve Handy, CFO, (818)761-1002