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DallasNews Corporation (NASDAQ:DALN), a small-cap media company with a market value of $34.79 million, has entered into a definitive agreement to sell its North Plant Property, including the building currently serving as its print facility and the surrounding land located in Plano, Texas. According to InvestingPro data, the company has been quickly burning through cash, making this asset sale particularly significant. The agreement, initially disclosed on December 16, 2024, was amended on February 5, 2025, to include additional environmental testing and an escrow arrangement.
The sale involves the property at 3900 Plano Parkway, Plano, Texas, and was conducted with 2201 Luna Road, LLC, succeeded by Plano Estates, LLC. The purchaser elected to proceed with the sale transaction as of Tuesday, following a series of extensions to the inspection period, the last of which was extended to February 5, 2025, in exchange for a nonrefundable $100,000 deposit. This transaction comes as the company’s stock has shown remarkable strength, with InvestingPro reporting a 55.41% return over the past year.
Closing of the sale is expected to occur on or before February 28, 2025. As part of the amended terms, DallasNews Corporation has agreed to deposit $600,000 into escrow to address any required environmental remediation, as indicated by the additional testing. The company will be responsible for remediation costs, but only up to the amount available from the escrow funds.
DallasNews Corporation, with a history under various names such as A. H. Belo Corp, has been a significant player in the publishing and printing industry, classified under the Standard Industrial Classification code 2711. The sale of the North Plant Property marks a material event for the company, headquartered in Dallas, Texas.
This transaction aligns with the ongoing transformations in the publishing industry as companies adapt to the evolving demands of digital media and distribution. The sale’s financial details have not been disclosed beyond the escrow commitment and deposit amount.
The information reported here is based on a press release statement and provides a factual account of DallasNews Corporation’s recent business decision without speculation or subjective commentary.
In other recent news, DallasNews Corporation reported significant developments. The Texas-based publishing company amended the sale agreement for its North Plant Property, offering additional flexibility for the purchaser and securing a portion of the deposit. However, DallasNews Corporation is also facing the risk of being delisted from the Nasdaq Stock Market due to non-compliance with the minimum stockholders’ equity requirement, though the company has expressed its intention to appeal the decision.
On the financial front, DallasNews Corporation reported a GAAP net loss of $3.9 million in Q3 2024, a significant increase from the previous year’s $1.4 million loss. This was attributed to the company’s transition to a smaller printing facility and headcount reductions. Despite this, DallasNews Corp saw an increase in digital subscription rates and digital subscribers, indicating a shift towards digital platforms.
These recent developments reflect DallasNews Corporation’s ongoing strategic and financial challenges as well as its efforts to adapt to the changing media landscape. The company’s financial health and future plans are expected to be further clarified in the upcoming earnings update.
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