StockMarketWire.com - reach4entertainment (LON:R4E), the transatlantic media and entertainment company, today announces that it is in constructive discussions with the vendor of Spot and Company of Manhattan Inc to renegotiate the settlement of the final earnout payment due from the Company's acquisition of SpotCo, as detailed in the terms of the acquisition agreement dated 8 August 2008. The Company had previously agreed with the vendor to defer the payment to 30 June 2012.

As at 31 December 2011, the Company had made provisions for liabilities with regard to the deferred consideration amounting to £2.7m. Whilst discussions are progressing and the Directors believe that a favourable outcome will occur, there is no certainty that an agreement will be concluded. The Company will make further announcements as appropriate.

Established in 1996 and based in New York, SpotCo, a 100% owned subsidiary of reach4entertainment plc, is a world-leading theatrical marketing agency that also services clients across opera, dance, music, galleries, museums and live events. For the 12 month period ended 31 December 2011, SpotCo generated EBITDA of $1.7 million on revenue of $62.7 million.


At 10:59am: (LON:R4E) share price was +0.01p at 6.38p



Story provided by StockMarketWire.com