destra terminates digital media sale

destra Corporation has terminated agreements that would have seen Artist & Entertainment Group Limited (AEM) acquire its digital media assets.

“In light of new financial information we received from AEM, it became imperative for us to terminate the agreement,” said Domenic Carosa, CEO at destra. The information received included revised AEM revenue forecasts and related material deterioration in profitability and cash flow, destra said.

The company said it now assumed the right previously held by AEM to acquire Rajon Distribution, comprising the business of Rajon Music, Rajon Vision, Rajon New Zealand and BIG Records (Rajon Group).

The Rajon Group expected to achieve earnings before interest and tax of $1 million on revenues of $20 million for its year ending 30 June 2006.

destra would acquire Rajon Distribution for $3 million by purchasing the shares held by Catskills Investments which is controlled by the chairman of Rajon, John Evans.

“We are enthused by the opportunity of digital media and are committed to maximising our returns on these assets. Our digital media strategy will now be controlled and executed with destra Corporation,” he said.