Toronto-based Bassett Media Group Corp. has announced the signing of a letter of intent with respect to the proposed acquisition of all of the outstanding shares of Haizou Media Corporation (HMedia) for an initial purchase price of $5,000,000. The sum will be payable through the issuance of common shares of Bassett Media.

HMedia’s shareholders may be entitled to receive an additional earn out payment of up to $2,000,000, also payable in shares, if HMedia meets certain earnings and EBITDA performance targets during fiscal 2010.

Formed in 2006 in China, HMedia now owns and operates over 50,000 advertising display screens that are located in high-traffic neighbourhoods across 20 cities in China and estimated to reach approximately 20 million consumers daily.