MarketWise Announces Leadership Changes to Strengthen Operations and Business Performance; Declares Regular Dividend of Approximately $2.9 Million or $0.01 Per Share; Declares Special Dividend of Approximately $50.0 Million or $0.15 Per Share
October 18 2023 - 8:40PM
MarketWise, Inc. (NASDAQ: MKTW) (“MarketWise” or “the Company”), a
leading multi-brand digital subscription services platform that
provides premium financial research, software, education, and tools
for self-directed investors, today announced a series of leadership
changes to strengthen the Company’s operations and business
performance.
- The Board of Directors of MarketWise appointed MarketWise
founder F. Porter Stansberry as Chairman of the Board and Chief
Executive Officer, effective immediately.
- Amber Lee Mason has resigned as Chief Executive Officer of
MarketWise and from the Board of Directors.
- Mark Gerhard and Riaan Hodgson, both members of the MarketWise
Board of Directors, have resigned their positions, effective
immediately.
- Marco Ferri, Chief Corporate Development Officer of MarketWise,
was terminated without cause effective October 13, 2023. Mr. Ferri
will remain with the Company as a consultant.
- The Company has announced that it will initiate an internal
review of current operations with the intent to enhance alignment,
improve efficiency, and increase cash flow and intrinsic value of
the business.
- The Company announced a regular dividend to shareholders of
Class A common stock of $0.01 per share. A comparable distribution
of $0.01 per unit has also been approved to holders of MarketWise,
LLC units. The dividend and distribution, which totals
approximately $2.9 million in the aggregate, will be paid on
January 25, 2024, to shareholders and unitholders of record as of
December 25, 2023. At June 30, 2023, the Company had a cash balance
of $187.0 million.
- Given the strong balance sheet of the Company, and after a
capital allocation review, the Company also announced a special
dividend to shareholders of Class A common stock of $0.15 per
share. A comparable distribution of $0.15 per unit has also been
approved to holders of MarketWise, LLC units. The dividend and
distribution, which totals approximately $50 million in the
aggregate, will be paid on December 1, 2023, to shareholders and
unitholders of record as of November 10, 2023.
Mr. Stansberry commented, “I’m grateful to our
shareholders and the board members who asked me to come back and
resume leading the company. MarketWise is an incredible business.
It has a long history of performing for its subscribers and its
shareholders. I am confident that, working with our talented teams,
we can improve the company's financial performance, while building
out great new products for our subscribers. I look forward to
setting new standards at the company for growth, efficient capital
allocation, and subscriber satisfaction.”
The Company noted that the announced leadership transitions are
not related to any issues with respect to the integrity of the
Company’s financial statements or accounting policies and
practices.
About MarketWise
Founded with a mission to level the playing
field for self-directed investors, today MarketWise is a leading
multi-brand subscription services platform providing premium
financial research, software, education, and tools for
investors.
With more than 20 years of operating history,
MarketWise is currently comprised of 13 primary customer facing
brands, offering more than 200 products, and serving a community of
approximately 17 million free and paid subscribers. MarketWise’s
products are a trusted source for high-value financial research,
education, actionable investment ideas, and investment software.
MarketWise is a 100% digital, direct-to-customer company offering
its research across a variety of platforms including mobile,
desktops, and tablets. MarketWise has a proven, agile, and scalable
platform and our vision is to become the leading financial
solutions platform for self-directed investors.
Cautionary Statement Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of the federal
securities laws, including statements regarding the Company’s
ability to capitalize on growth opportunities. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements are predictions, projections, and other statements about
future events that are based on current expectations and
assumptions and, as a result, are subject to risks and
uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including those described in the “Risk Factors” section of
our filings with the U.S. Securities and Exchange Commission (the
“SEC”), including our Annual Report on Form 10-K for the year ended
December 31, 2022.
MarketWise Investor Relations
Contact
Erik Mickels – MarketWise Chief Financial
OfficerJonathan Shanfield – MarketWise Investor Relations
(800) 290-4113Email: ir@marketwise.com
MarketWise Media Contact
Email: media@marketwise.com
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