Natural Products  August 9, 2016

Gaia posts $2.4M quarterly loss

LOUISVILLE — Gaia Inc. on Monday evening reported a loss of $2.4 million, or 10 cents per share, for its second quarter that ended June 30, as the Louisville-based company transitions into strictly a subscription video-streaming business with titles that focus on health and wellness.

In July, Gaia changed its corporate name to Gaia Inc. from Gaiam Inc. and continues to trade on the Nasdaq stock exchange under its ticker symbol GAIA.

In July, Gaia completed the sale of its branded consumer product business to Sequential Brands Group Inc. (Nasdaq: SQBG) and its operating partner Fit For Life LLC. Gross consideration was $167 million, subject to closing costs and standard post-closing adjustments, including net working capital, which is currently scheduled to be finalized by the end of the third quarter.

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In May, Gaia sold its 51.4 percent interest in Natural Habitat Inc. to Lindblad Expeditions Holdings Inc. (Nasdaq: LIND) for $12.8 million.

From the $120 million to $125 million of expected combined gains realized from these transactions, Gaia’s net operating loss carryforwards shall offset approximately $85 million to $90 million.

The company used the majority of the proceeds to conduct a share repurchase tender offer and acquired 9.6 million shares of its common stock and 840,000 vested stock options at a fixed price of $7.75 per share. The remaining proceeds will be used to fund the continuing growth and development of the company’s business, as well as general corporate purposes. After the tender, Gaia has approximately 15 million shares outstanding.

“Completing these transactions, following dispositions of our solar energy and DVD distribution businesses, were the final steps on our path to focus on a subscription video streaming business,” Jirka Rysavy, Gaia’s chairman and chief executive, said in a prepared statement.

“The tender offer price was set at a 34 percent premium of the year-to-date average trading price of our stock,” Rysavy said. “Because of my belief in the tremendous upside potential for the Gaia business model, I did not participate in the tender for any of my ownership interest, which stands at 38 percent today, and after eight years I have returned to the CEO position.”

LOUISVILLE — Gaia Inc. on Monday evening reported a loss of $2.4 million, or 10 cents per share, for its second quarter that ended June 30, as the Louisville-based company transitions into strictly a subscription video-streaming business with titles that focus on health and wellness.

In July, Gaia changed its corporate name to Gaia Inc. from Gaiam Inc. and continues to trade on the Nasdaq stock exchange under its ticker symbol GAIA.

In July, Gaia completed the sale of its branded consumer product business to Sequential Brands Group Inc. (Nasdaq: SQBG) and its operating partner Fit For Life LLC. Gross consideration was…

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