IDW Media Holdings announced a series of significant moves in response to operational challenges to position the company for recovery and future growth. IDW‘s Board of Directors has determined to implement a reduction of force, deregister the Company’s Class B common stock under the Securities Exchange Act of 1934, delist the Class B common stock from the NYSE American, make changes in senior management, and implement cost cutting measures. The Board has elected to take these actions 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. The company is cutting approximately 39% of its current workforce, retaining essential personnel who are most directly related to preserving current operations and launching the company on its new trajectory. 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. 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.
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