Travelzoo, a hotel and package deal publisher, said in a financial filing on Tuesday that it would ask its stockholders to approve making a metaverse experiences scouting business a wholly owned subsidiary of Travelzoo. The business, Metaverse Travel Experiences (MTE), is currently wholly owned by Azzurro Capital.
The proposed consideration for the issuance of Travelzoo stock is mix of $10 million (details are explained in the document posted below) and 100 percent of the equity in MTE.
At a Dec. 28 special meeting, the company will ask shareholders to vote on allowing the hedge fund Azzuro Capital, an investment vehicle owned by Travelzoo founder Ralph Bartel, to pursue a transaction that would effectively leave Azzuro and Bartel with an approximate 50.01 percent stake in Travelzoo (up from 35.99 percent) and his brother, CEO Holger Bartel, with 4.1 percent. The company will issue shares of common stock representing approximately 27.5 percent of outstanding stock.
The planned subsidiary aims to build “relationships with creators and providers of high-quality metaverse travel experiences to broker contracts between such creators/experience providers and businesses planning to market metaverse experiences to consumers.” Skift covered the debut of the unit earlier this year.
The financial filing is posted below.