Charlotte, NC, Nov. 16, 2021 (GLOBE NEWSWIRE) — Ballantyne Strong, Inc. (NYSE American: BTN) (the “Company” or “Ballantyne”), the parent of Strong Global Entertainment, Inc. (“Strong Global Entertainment”) announced today that the Company has confidentially submitted a draft registration statement on Form S-1 to the Securities and Exchange Commission (the “SEC”) relating to a proposed initial public offering of common shares of Strong Global Entertainment. The number of shares and price range for the proposed offering have yet to be determined. The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.
This press release is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the “Securities Act”) and shall not constitute an offer to sell, or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act.
About Ballantyne Strong, Inc.
Ballantyne Strong, Inc. is a diversified holding company with operations and holdings across a broad range of industries. Ballantyne’s Strong Entertainment segment currently includes one of the largest premium screen suppliers in the United States and also provides technical support services and other related products and services to the cinema exhibition industry, theme parks and other entertainment-related markets. Ballantyne holds a $13 million preferred stake along with Google Ventures in privately held Firefly Systems, Inc., which is rolling out a digital mobile advertising network on rideshare and taxi fleets. Finally, Ballantyne holds a 9% ownership position in GreenFirst Forest Products Inc. (TSX: GFP), a forest-first business focused on sustainable forest management and lumber production, and an 18% ownership position in FG Financial Group, Inc. (Nasdaq: FGF), a reinsurance and investment management holding company focused on opportunistic collateralized and loss capped reinsurance, while allocating capital to SPAC and SPAC sponsor-related businesses.
This press release may contain “forward-looking statements.” All statements, other than statements of historical facts, are forward-looking statements. Ballantyne or Strong Global Entertainment may, in some cases, use words such as “project,” “believe,” “anticipate,” “plan,” “expect,” “estimate,” “intend,” “should,” “would,” “could,” “potentially,” “will” or “may,” or other words that convey uncertainty of future events or outcomes, to identify these forward-looking statements. Such forward-looking statements are based on management’s current expectations, but actual results may differ materially due to various factors. There can be no guarantees that the initial public offering of Strong Global Entertainment, Inc. will be consummated on the timeline anticipated or at all, or that Ballantyne or Strong Global Entertainment will achieve the anticipated benefits of such a transaction. Ballantyne’s and Strong Global Entertainment’s ability to consummate and achieve the anticipated benefits of the potential initial public offering of Strong Global Entertainment may be materially affected by certain factors outside their control that could affect the advisability, pricing and timing of the potential initial public offering of Strong Global Entertainment, as well as a number of risks and uncertainties regarding the business, results of operation or financial condition of Ballantyne or Strong Global Entertainment, including but not limited to those discussed in the “Risk Factors” section contained in Item 1A in Ballantyne’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 10, 2021, as supplemented by Ballantyne’s Amendment No. 1 on Form 10-K/A filed with the SEC on April 28, 2021, and Ballantyne’s subsequent filings with the SEC, in addition to and including the following risks and uncertainties: the negative impact that the COVID-19 pandemic has already had, and may continue to have, on the Company’s business and financial condition; the Company’s ability to maintain and expand its revenue streams to compensate for the lower demand for the Company’s digital cinema products and installation services; potential interruptions of supplier relationships or higher prices charged by suppliers; the Company’s ability to successfully compete and introduce enhancements and new features that achieve market acceptance and that keep pace with technological developments; the Company’s ability to successfully execute its capital allocation strategy or achieve the returns it expects from these investments; the Company’s ability to maintain its brand and reputation and retain or replace its significant customers; challenges associated with the Company’s long sales cycles; the impact of a challenging global economic environment or a downturn in the markets (such as the current economic disruption and market volatility generated by the ongoing COVID-19 pandemic); economic and political risks of selling products in foreign countries (including tariffs); risks of non-compliance with U.S. and foreign laws and regulations, potential sales tax collections and claims for uncollected amounts; cybersecurity risks and risks of damage and interruptions of information technology systems; the Company’s ability to retain key members of management and successfully integrate new executives; the Company’s ability to complete acquisitions, strategic investments, entry into new lines of business, divestitures, mergers or other transactions on acceptable terms, or at all; the impact of the COVID-19 pandemic on the Company’s portfolio companies; the Company’s ability to utilize or assert its intellectual property rights, the impact of natural disasters and other catastrophic events (such as the ongoing COVID-19 pandemic); the adequacy of insurance; the impact of having a controlling shareholder and vulnerability to fluctuation in the Company’s share price. Given the risks and uncertainties, readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results which may not occur as anticipated. Many of the risks listed above have been, and may further be, exacerbated by the ongoing COVID-19 pandemic, its impact on the cinema and entertainment industry, and the worsening economic environment. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein, as well as others not now anticipated. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except where required by law, we undertake no obligation to publicly update, withdraw, or revise any forward-looking statements to reflect actual results or changes in factors or assumptions on which any statement is based.
For Investor Relations Inquiries: