Looking for a good time? Look no further than your adult pay-per-view provider New Frontier Media, Inc. (NasdaqGS: NOOF) who has attracted the likes of Hustler Magazine’s Larry Flynt. Investors in NOOF stock could be looking at an upside of as much as 55% should the adult-entertainment magnate’s offer of $2.02 per share be accepted. The buyout is said to be valued at $33 million plus a contingent cash payment of up to 6 cents a share depending on New Frontier’s cash on hand at closing.
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NOOF Stock Chart
Market Cap: 21.05M
Close: 1.30, down -0.03 (-2.26%)
Dollar Volume: $17,278
Average Trade Size: 531
Authorized: 50,000, 000
Issued and Outstanding: 16,190,408
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The Flynt Broadcasting offer represents a 79% premium to New Frontier’s March 8 closing stock price. That was one day prior to an offer of $1.35 for NOOF from the Company’s largest shareholder, Longkloof Ltd., a unit of Hosken Consolidated Investments Ltd. of South Africa. Soon after, they also received an offer for $1.50 per share from Luxembourg-based Manwin Holding, which owns Playboy TV.
The deal is subject to at least 50 percent of outstanding shares being tendered, among other conditions. Written communication relating to third party tender offer by Flynt Broadcast, Inc. was filed with the SEC roughly one hour after the market close Monday. The acquisition price represents approximately a 79% premium to New Frontier Media’s closing stock price on March 8, 2012, the day before New Frontier Media received a publicly-announced unsolicited acquisition proposal. The acquisition is expected to close during the fourth quarter of 2012.
New Frontier is no couch potato of a company. For the three months ended June 30, 2012, revenues came in at $11.68 million versus $10.43 million for the same period the year before. The quarter produced a net loss of $(1.11 million) versus net income of $7.00K for the same period the year before. The difference was attributable to a higher cost of sales of roughly 1.90 million for the quarter. Hard to find those free actresses nowadays.
Larry Flynt, the creator of Hustler Magazine and the Hustler Clubs, has long been an advocate for the freedoms of Americans, including the legalization of certain drugs like Marijuana. In an interview with 420 magazine back in March, Flynt spoke out about how those that have the most to lose from legal cannabis would be the pharmaceutical, alcohol and prison industries.
Pharmaceutical companies don’t want people turning to marijuana for pain relief because it means they’ll be spending less on prescription pills, according to Flynt. The alcohol industry doesn’t want the competition, either. With mounting scientific evidence that pot is safer than alcohol, legal marijuana would clearly put a major dent in the booze business’s profits.
And then there’s the “corrections industry,” with its powerful lobbying dollars keeping the United States the most incarcerated nation on earth. Private, for-profit prisons only make money if they’re full, and that means locking up weed growers and pot smokers.
Thank god self-love can’t be taken away which makes the buyout offer of New Frontier Media a superb match for Flynt Broadcast and everything their founder stands for in our freedom to choose: Adam & Eve, Adam & Steve, or Amanda and Eve.
About NOOF Stock
New Frontier Media, Inc. is a a provider of transactional television services and a distributor of general motion picture entertainment. The key customers of the Company include large cable and satellite operators, premium movie channel providers and major Hollywood studios. The Company’s three principal businesses are reflected in the Transactional TV, Film Production and Direct-to-Consumer operating segments.
Click here to view the SEC filings for NOOF.
Bottom Line: NOOF is a must own penny stock immediately at the opening bell Tuesday (assuming you can get in for less than $2.02). Make sure to have NOOF stock on your radar screen today for a quick 55% gain.
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