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DallasNews Corp (NASDAQ:DALN), a Texas-based publishing company with a market capitalization of $33.6 million and currently trading at $6.63, announced today that it has amended the sale agreement for its North Plant Property in Plano, Texas. The amendment grants the buyer, Plano Estates, LLC, an extension until March 14, 2025, to finalize the purchase. According to InvestingPro analysis, the company has been experiencing significant cash burn, making this transaction particularly important for its financial stability.
The original sale agreement for the property, which includes The Dallas Morning News, Inc.’s (TDMN) printing facility and surrounding land, was set to close by today. However, the purchaser indicated that additional time was needed to complete closing documentation, although financing had been approved. This transaction comes at a time when DallasNews Corp maintains a notable 10.2% dividend yield and has sustained dividend payments for 14 consecutive years, as revealed by InvestingPro data.
To secure this extension, Plano Estates has paid an additional $150,000 directly to TDMN, separate from the purchase price, and made a further $250,000 deposit, both of which were nonrefundable except under certain conditions. These payments were made as part of the exercise of the Extension Right provided by the Fourth Amendment to the Purchase and Sale Agreement.
The North Plant Property sale is a significant transaction for DallasNews Corp, which has a history in newspaper publishing. The company, previously known as A. H. Belo Corp, has been restructuring its assets, as evidenced by this divestiture.
The financial terms of the sale, including the total purchase price, have not been disclosed in the filing. Investors and market watchers will be closely monitoring the finalization of this sale, given its importance to DallasNews Corp’s operations and financial structure.
The information reported is based on the latest 8-K filing by DallasNews Corp with the Securities and Exchange Commission.
In other recent news, DallasNews Corporation has been granted an extension by Nasdaq to meet the Stockholders’ Equity Requirement by May 15, 2025. This extension follows a period of non-compliance due to the company’s stockholders’ equity falling below the required $2.5 million, as reported in their Quarterly Report for September 30, 2024. The company aims to meet the equity requirement to avoid potential delisting from the Nasdaq exchange. In another development, DallasNews Corporation has entered into a definitive agreement to sell its North Plant Property in Plano, Texas, including its print facility and surrounding land. The agreement, initially disclosed in December 2024, was amended to include additional environmental testing and an escrow arrangement. The sale is expected to close by February 28, 2025, with a $600,000 escrow deposit to cover potential environmental remediation costs. The sale agreement was further revised to allow the purchaser, 2201 Luna Road, LLC, to extend the inspection and closing dates, securing $500,000 of the deposit for DallasNews Corporation. These recent developments highlight the company’s ongoing strategic decisions amid industry transformations.
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