JumpTV and NeuLion (News - Alert) recently announced the execution of the definitive agreement of their previously announced merger. JumpTV is an Internet broadcaster of live and on-demand sports video, while NeuLion is a producer of end-to-end solutions for multimedia IPTV
(Internet Protocol Television) services.
According to the agreement, the offering of securities to investors in the private placement will be subject to a shareholder vote combined with shareholder approval of the definitive agreement. In accordance with this private placement, AvantaLion made a final commitment to subscribe for 10 million units of JumpTV (News - Alert) at a price of $1.00 per unit.
On the same terms, G. Scott Paterson, executive chairman of JumpTV, also made a commitment to purchase one million units. While the private placement can be closed only on regulatory approvals, including approval of the Toronto Stock Exchange, the merger’s completion completely depended on shareholder approval of the unit subscription. Closing of the proposed merger is subject to regulatory JumpTV shareholder and NeuLion shareholder approval and is scheduled to occur on or about October 1, 2008.
At a recent Annual and Special General Meeting, Jordan Banks, chief executive officer at JumpTV, did not stand for re-election as its director. This was in accordance with the recent announcement made by the company that Banks would cease acting as chief executive officer from June 27, 2008.
"We are grateful to Jordan Banks for his strategic vision and unwavering dedication to JumpTV and all of its stakeholders for the past eight months," stated Paterson.
"Jordan has played a critical role in JumpTV's evolution. We wish him all the best in his future endeavors," Paterson added.
Earlier, a voluntary offer to merge both JumpTV and LiveTime Group was made by Brad Greenspan on behalf of an entity in his control.
In a special meeting of the board of directors of JumpTV, Greenspan's proposal was considered and evaluated in a discussion. After such consideration, the board took legal and financial counsel and came to the conclusion that Greenspan’s proposal would not be in the best interest of JumpTV. The board also concluded that the company’s best interest would be in continuing negotiations with NeuLion. This decision was in conjunction with the definitive agreement as described earlier.
Shireen Dee is a contributing editor for TMCnet. To read more of Shireen’s articles, please visit her columnist page.
Internet Protocol Television (IPTV) | X |
| IPTV delivers a digital television service to subscribers
via the Internet Protocol over a broadband connection....more |
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