08:35 AM EST, 12/18/2024 (MT Newswires) -- WildBrain ( WLDBF ) , an entertainment company, on Wednesday said it signed a definitive agreement to sell two-thirds of its television broadcast business to IoM Media Ventures, an independent, Canadian-owned children's studio based in Halifax, Nova Scotia.

The company expects to receive more than $40 million over the next four years from the deal and its continuing involvement in its television broadcast business through up-front and deferred purchase consideration, minority participation distributions, content licensing, and other fees.

WildBrain ( WLDBF ), under the new structure, will retain one-third ownership of the business and will no longer be subject to applicable restrictions under the Broadcasting Act as relates to non-Canadian ownership which will permit WildBrain ( WLDBF ) to remove, in due course, its variable voting share structure currently applicable to non-Canadian shareholders.

The deal is expected to close in about three to six months, pending approval by the Canadian Radio-television and Telecommunications Commission. Proceeds from the deal will be used to pay down debt.

Shares of the company closed down $0.05 or 3%, to $1.39 on Tuesday on the Toronto Stock Exchange.