IDW Cuts Two-Fifths of Employees, Executives, Stock Exchange Listing

IDW Media Holdings, Inc., the corporate greatest recognized at Bleeding Cool for the IDW Publishing comedian guide line and IDW Entertainment , right this moment introduced a collection of main cuts and modifications which they cite “in response to operational challenges to position the Company for recovery and future growth.” Amongst different actions, meaning “cutting approximately 39% of its current workforce.” Bleeding Cool understands that IDW has simply completed holding an all-hands assembly to offer the dangerous information. Unless you’re one of the Jonas household who at the moment personal a lot of the media writer.

Recently IDW Media Holdings Investors referred to as for the sale of IDW in an open letter. IDW’s Board of Directors has acknowledged that they’ll;

• deregister the Company’s Class B frequent inventory underneath the Securities Exchange Act of 1934
• delist the Class B frequent inventory from the NYSE American
• make modifications in senior administration
• implement value chopping measures.

These actions are meant to “preserve capital, and put the Company in the strongest position possible to unlock value from its assets, including its intellectual property and ability to generate new intellectual property.”

IDW states that they are going to be “retaining essential personnel who are most directly related to preserving current operations and launching the Company on its new trajectory.” I discover that former Bleeding Cool editor Keith Davidsen who was working for IDW in media relations has his e-mail bouncing.

IDW states that “the reduction in force and other steps, after the effect of backfilling certain positions, is expected to deliver approximately $4.4 million in annual savings (and potentially greater savings in future periods) and is currently expected to result in approximately $0.9 million in severance and related costs to be recognized in the current period. Before giving effect to any payments of severance or related costs, the Company expects to hold approximately $5.7 million cash and cash equivalents as of April 28,2023.”

As for delisting IDW from the inventory market, “The Company has determined to voluntarily delist from the NYSE American exchange and to deregister its Class B common stock under Section 12(b) and Section 12(g) of the Securities Exchange Act of 1934, as amended, and suspend its reporting obligations under Section 15(d) of the Exchange Act. The Company has notified NYSE American of its intent to delist its securities from NYSE American, anticipates that it will shortly file with the Securities and Exchange Commission (the “SEC”) a Form 25 relating to the delisting and deregistration of its securities, and anticipates that the delisting and deregistration under Section 12(b) of its Class B common stock will become effective on or about May 18, 2023. Following the delisting of its securities from NYSE American, the Company plans to file with the SEC a Form 15 to deregister its securities under Section 12(g) of the Exchange Act and suspend its reporting obligations under Section 15(d) of the Exchange Act. The Board determined that deregistration is in the overall best interests of the Company and its stockholders following review and careful consideration of a number of factors, including, but not limited to, the expected reduction in operating expenses associated with continued listing and reporting, which would allow the Company to focus more resources on its recovery and growth plans.”

And sure, it is in all probability time to look at the Wolf Of Wall Street once more to remind me how this all works. “The Company intends to file an application for its Class B common stock to be quoted on the OTCQB platform, operated by OTC Markets Group Inc. as soon as practicable. It is likely that there will be some period following delisting of the Class B common stock from NYSE American prior to commencement of quotation on the OTCQB and during such period, the Class B common stock may be quoted on the OTC Pink Market. The Company intends to continue to provide information to its stockholders and to take such actions to enable a trading market in its Class B common stock to exist. There is no guarantee, however, that one or more brokers will continue to make a market in the Class B common stock and that trading of the Class B common stock will be approved for quotation on, or continue to be quoted on, the OTCQB.”

“The Board determined that going dark is the best path for the Company due to expected cost savings, reduction of pressure on limited resources and the Company’s current inability to realize many of the benefits from continued listing and Exchange Act registration and reporting,” stated David Breau, Lead Independent Director on IDW’s Board. “Low trading values and volume has limited our Class B common stock’s liquidity and made it untenable to effectively use our securities as transaction consideration, attract interest from institutional investors or market analysts or provide meaningful incentive to our employees. At the same time, we continued to bear the direct and indirect expenses associated with the NYSE American listing and SEC reporting. We believe the reduction in time spent by our management and employees complying with the requirements applicable to SEC reporting companies will enable them to focus more on managing the Company’s businesses, strengthening our strategic relationships, exploiting our assets and thus increasing stockholder value, with a focus on long-term growth without an undue distraction by short-term financial results and stock price movement.”

As to senior administration, Davidi Jonas, who was lately elected to the Board by the IDW’s stockholders and was named as Executive Chairman and Vice Chairman of the Board might be taking up the position of Chief Executive Officer changing Allan Grafman who has served in that position since late August 2022. Jonas is a member of the household that already collectively owns a controlling curiosity within the CIDW’s fairness, and his father, Howard Jonas, serves as IDW’s Chairman and Chairman of the Board.

With the anticipated deregistration and delisting, IDW has acknowledged that they decided that “Brooke Feinstein‘s services as Chief Financial Officer were no longer essential and she will be departing the Company. The principal financial position will be filled by existing internal resources.”

“We appreciate Allan’s industry experience and efforts on IDW’s behalf during the last eight months as CEO and for over three years prior to that as a member of the Board and Chairman of the Audit Committee,” added Howard Jonas, IDW’s Chairman. However, with the necessity to make pivotal modifications to protect worth and remodel the Company, the Board felt {that a} new CEO with new concepts, a tireless work ethic, willingness to roll up his sleeves and do no matter is required to assist the Company, with a profitable report at creating a company tradition of excellence and maximizing stockholder worth, was what IDW wanted. Brooke has been a key member of administration for over 4.5 years, serving effectively in numerous capacities.”

Amber Huerta, who serves because the Senior Vice President, People and Organizational Development of IDW, has been promoted to Chief Operating Officer, which IDW states is “reflecting the much broader role she plays across several operational disciplines.” IDW states that they’re finalizing separation preparations with Grafman and Feinstein.

“I am humbled by the confidence being placed in me by the IDW Board in appointing me to this position at such a pivotal time in the Company’s existence,” stated Davidi Jonas, Executive Chairman and incoming Chief Executive Officer. “I feel an overwhelming sense of excitement and more than a little trepidation as I face the challenges before us. Our Board is taking bold action to address the challenges facing the Company and I share their view that alacrity is called for. My trepidation comes from the magnitude of the task ahead and my determination to do everything possible to unlock and create the value for our stockholders that they deserve. Many of our stockholders, not least of them members of my family, have shown patience and loyalty and it is my singular goal to see that rewarded. Since re-joining the Company as Executive Chairman, I have taken a deep dive into the Company and have strong views on what is needed to put the Company’s best foot forward on the path of success. The painful cuts we are making are unfortunately absolutely necessary. We need to ensure that the Company can survive and then grow. I want to thank Allan, Brooke, and the great employees and other contributors to IDW’s past successes. Today we hit reset. Today I take on the responsibility to those for whom I work and those whom I work with, the stockholders and my colleagues at IDW. I will work tirelessly to unlock value.” IDW is a superb firm with a storied historical past. IDW has an incredible crew of people who find themselves prepared to offer their all and once more I’m humbled to be at their head,”

IDW Publishing was based in 1999 because the publishing division of Idea and Design Works, LLC , additionally fashioned in 1999, and is often acknowledged because the fifth-largest comedian guide writer within the US. It was fashioned in 1999 by a gaggle of comedian guide managers and artists, Ted Adams, Robbie Robbins, Alex Garner, and Kris Oprisko, who first met whereas working at Wildstorm, and when Jim Lee offered Wildstorm to DC, Lee turned that firm’s inventive service division, beforehand run by Adams, over to the newly fashioned IDW.

Early distinguished titles included Steve Niles and Ben Templesmith’s 30 Days of Night which began a seven-figure bidding struggle between DreamWorks, MGM, and Senator International for a film adaptation. They additionally created Wynonna Earp, Locke & Key and the Dirk Gently TV collection and comics, and in addition licenced the likes of Transformers, Doctor Who, GI Joe, Star Wars although they misplaced a quantity of the licenses to different publishers. IDW purchased Teenage Mutant Ninja Turtles nonetheless in its entirety. They at the moment publish the Dungeons & Dragons collection, Star Trek, Magic The Gathering, Sonic The Hedgehog, My Little Pony, a line of creator-owned comics showrun by Scott Snyder, and purchase small press writer Top Shelf Productions which introduced them the graphic novels From Hell, Lost Girls, The League Of Extraordinary Gentlemen and March. The additionally publish the industry-leading archive tasks, the Artists’ Editions from senior editor Scott Dunbier, additionally a former Wildstorm government.

The unique founders of IDW have moved on, as enterprise capital took over, and through the pandemic, the corporate furloughed after which laid off many editorial staff, a quantity of whom arrange their very own publishers, equivalent to Opus Comics, Clover Press and Syzygy Publishing.