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The acquired businesses bring a combination of scale, cultural cachet, and commercial reach. Together, Diamond Comic Distributors (U.S.), Alliance Game Distributors, and Collectible Grading Authority support over 5,000 retail storefronts, ranging from independent comic and game stores to specialty retailers, mass-market chains, and leading e-commerce platforms.

Through these businesses, Alliance Entertainment will gain deeper access to a highly engaged community of retailers and fans who form the backbone of the $50+ billion global market for tabletop games, collectibles, comics, and pop culture merchandise. These businesses have long-standing relationships with many of the most iconic brands and publishers in the fandom ecosystem, including:

• Dungeons & Dragons, Magic: The Gathering (Wizards of the Coast / Hasbro)

• Pokémon Trading Card Game

• Marvel, BOOM! Entertainment, and Dark Horse Comics

• Dragon Ball, One Piece, Digimon (Bandai Namco)

Alliance Game Distributors is a category leader in the fast-growing tabletop games sector, offering over 15,000 unique SKUs to 3,000+ independent hobby retailers across North America. It partners with over 150 game publishers, delivering industry staples and breakout hits in card games, board games, role-playing games (RPGs), and miniatures.

Diamond Comic Distributors (U.S.) is the industry’s long-standing distribution backbone for comic books, graphic novels, action figures, and licensed collectibles. With over 40 years of history, it remains the go-to fulfillment engine for 2,500+ comic shops and thousands of additional retailers through its flagship PREVIEWS^® catalog, which reaches 30,000+ readers each month.

Collectible Grading Authority brings a high-value service layer to Alliance’s offering, having authenticated and graded over 500,000 collectibles for dealers, collectors, and auction firms in more than 50 countries.

These businesses will not only expand Alliance Entertainment’s product portfolio, they extend its market coverage. With substantial account overlaps already identified, the acquisition will enable immediate cross-selling potential: introducing Diamond’s fan-favorite intellectual property into Alliance’s mass retail and e-commerce channels, while bringing Alliance’s extensive catalog of physical media and licensed merchandise into thousands of specialty accounts.

“This transaction will position Alliance to deliver long-term value by bringing together some of the most iconic fan-driven brands in the world with the industry’s most efficient and scalable distribution platform,” added Walker. “It aligns directly with our strategy to grow through high-impact, capital-light opportunities that strengthen our market share and expand our margin potential. By integrating these assets, we’re increasing our product exclusivity, expanding retail and e-commerce reach, and unlocking new cross-channel synergies, all while staying disciplined in our operational execution. This is exactly the type of opportunity that supports our long-term goals for sustainable growth, profitability, and shareholder value.”

Alliance Entertainment intends to finance the acquisition through an amendment to its existing $120 million Revolving Credit Facility, which it expects to increase to $160 million. The amended facility will be secured by a pledge of the acquired assets, alongside the Company's existing collateral. The transaction and credit facility amendment are expected to close in April 2025, subject to final bankruptcy court approval and customary closing conditions.

About Alliance Entertainment
Alliance Entertainment (NASDAQ: AENT) is a premier distributor of music, movies, toys, collectibles, and consumer electronics. We offer over 325,000 unique in-stock SKU’s, including over 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games. Complementing our vast media catalog, we also stock a full array of related accessories, toys, and collectibles. With more than thirty-five years of distribution experience, Alliance Entertainment serves customers of every size, providing a robust suite of services to resellers and retailers worldwide. Our efficient processing and essential seller tools noticeably reduce the costs associated with administrating multiple vendor relationships, while helping omni-channel retailers expand their product selection and fulfillment goals. For more information, visit www.aent.com.

Forward Looking Statements
Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services; Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s significant amount of indebtedness; our ability to refinance our existing indebtedness; our ability to continue as a going concern absent access to sources of liquidity; risks and failure by Alliance to meet the covenant requirements of its revolving credit facility, including a fixed charge coverage ratio; risks that a breach of the revolving credit facility, including Alliance’s recent breach of the covenant requirements, could result in the lender declaring a default and that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk and changes in applicable laws or regulations; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on our business operations, as well as our financial condition and results of operations; substantial regulations, which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims; availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal controls.

For investor inquiries, please contact:
Dave Gentry, CEO
RedChip Companies, Inc.
1-407-644-4256
AENT@redchip.com