Gaia Inc., the health and wellness media company, closed on the sale of the portion of its corporate headquarters that it was not occupying to a real estate investor on Wednesday. Gaia will still retain full ownership of its studio and production facilities.
Highlights of the completed transaction:
- Sold 50 percent of its office space for $13 million, utilizing the proceeds to reduce debt from $17 million to $4 million.
- Recognized a book gain of approximately $6 million, net operating losses to offset tax impact.
- Impact on future periods operating expenses will be neutral.
Gaia also provided an update on its progress toward its goals for the third quarter, including:
- On track for 30,000 net member additions.
- Positive earnings and cash flow in July and August; on track for September even excluding the gain from the sale of real estate.
“The completion of this transaction allows us to realize the appreciated equity value in our building while retaining strategic control of our production facilities and headquarters,” said Paul Tarell, Gaia’s CFO. “We have continued building on the momentum of the past six months and are on track to report positive earnings and cash flows for the third quarter as planned.”
Gaia plans to report its third-quarter 2020 earnings results on November 9.
Photo courtesy Gaia
