SmartVideo(TM) Technologies, Inc., a leader in the delivery of high quality mobile video, today announced that it has completed a securities purchase agreement to issue and deliver 7,200,000 shares of common stock and five-year warrants to a group of accredited investors, raising $9 million in gross proceeds. The amount greatly exceeds SmartVideo's target of $8 million and is expected to be used towards the Company's continued development of cutting-edge applications for delivering live, on-demand or downloaded content to wireless subscribers using handsets, PDAs and laptops worldwide.
Under the terms of the financing, SmartVideo will issue 7,200,000 shares of common stock and five-year warrants exercisable at $2.50 per share to purchase 7,200,000 shares of common stock. As part of the transaction, SmartVideo has agreed to file a registration statement to register the shares of common stock underlying the common shares and the warrants.
As the mobile video category continues to gain widespread adoption, SmartVideo has continued to work towards establishing itself as one of the leading content providers by partnering with more than 25 live TV channels and on-demand video programming partners, such as ABC News, Fox Sports, MSNBC, Fashion TV, E! Entertainment Television, The Weather Channel and others. SmartVideo is compatible with Microsoft Windows Mobile 2003 and 5.0, Smartphones, PDAs/Pocket PCs, and Symbian OS devices with Real Player. The Company is also developing and testing software that will enable compatibility on a larger selection of phones.
In addition, SmartVideo is pioneering the ad-supported mobile environment by being the first company in the mobile entertainment industry to offer interstitial advertising on mobile devices. SmartVideo's technologies and applications for dynamic ad insertion within mobile video have been instrumental in positioning SmartVideo as a leader in the ad supported space and most recently, the Company completed a successful Beta test with a major national portal.
"Mobile video has emerged as one of the biggest growth categories in the wireless industry with some of the biggest media companies in the world looking to capitalize on the space," said David Ross, President of SmartVideo. "This new round of funding enables SmartVideo to obtain and create new exciting content in addition to new custom-built applications that will benefit subscribers and mobile partners alike."
Glenn Singer, Chairman of the Board of SmartVideo, added, "This financing provides us with enhanced working capital and will assist us in the continued execution of our business plan. These funds will allow us to expand our marketing and service activities which will help us to form a world-class global company."
A current Report on Form 8-K will be filed with the Securities and Exchange Commission, which will provide additional information regarding this financing. This round of financing triggered an anti-dilution provision under a prior financing resulting in the issue of additional warrants exercisable at $1.25 per share to purchase an additional 6,553,663 shares of common stock. Certain of the Company's directors participated in this prior financing.
The shares of common stock have not been registered under the Securities Act of 1933 and may not be subsequently offered or sold by the investor in the United Sates absent registration or an applicable exemption from the registration requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sales would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Not Just Video - Smarter Than Video!
SmartVideo is a provider of new interactive media solutions for consumers on the go. Having established itself as a market leader in the delivery of high quality mobile video, SmartVideo also offers advertising-based solutions across all new media platforms, including mobile and the Internet. These solutions enable broadcasters and media companies to connect to consumers, in addition to the potential for increasing their advertising reach, revenues and exposure of new content and products.
SmartVideo combines traditional linear television, VOD (video on demand), interactivity, and targeted advertising... with a view towards providing an enhanced and interactive TV viewing experience for mobile devices.
SmartVideo develops and markets a complete suite of revolutionary media services that combine familiar brands with user-friendly personalization, interactivity, and targeted advertising, delivering it to customers' mobile devices. Capitalizing on the ever increasing demand by consumers for personalized and interactive entertainment, SmartVideo enables consumers to obtain their entertainment and media anywhere, anytime to select media-enabled devices worldwide. For additional information and to subscribe to SmartVideo's Live TV content packages visit http://www.smartvideo.com.