Almost half a year after the announcement that a company owned by musician Gregory Charles has agreed to buy Radio Classique stations CJPX-FM 99.5 Montreal and CJSQ-FM 92.7 Quebec City, the CRTC has published the application for a transfer of ownership, and we have some details about the sale and his plans for the stations.
The application confirms a purchase price of $10.5 million for the two stations — $6.78 million for CJPX and $3.72 million for CJSQ. The purchase is $7 million in cash and $3.5 million in shares in the new company that must be repurchased by the buyer within four years. There’s also a consulting contract of $8,750 a month ($420,000 total over four years) for existing ownership so long as they still have those shares. The purchase is an acquisition of assets rather than a purchase of the companies that own the stations. There’s also a non-competition clause that lasts three years preventing the current owners from owning or managing a broadcasting or online radio station, or soliciting clients.
The new owner will be Média ClassiQ inc., controlled 100% by Gregory Charles. The stations are currently owned 90% by Jean-Pierre Coallier and 10% by Pierre Barbeau.
If CRTC approval is not acquired by Dec. 31, either party can terminate the agreement, with the buyer paying a $100,000 penalty to the seller.