C Media Invests $2 Million USD in YOU On Demand and Extends Phase 2 Funding Deadline
NEW YORK, Nov. 5, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), the first national Video On Demand (VOD) platform in China, announced today that C Media Limited ("C Media"), a leading China-based mobile video service provider, has raised its aggregate strategic investment in YOU On Demand, increasing its present stake to $6 million USD with a $2 million USD Convertible Bridge Note financing ("Bridge Note"). The Bridge Note would convert to Series E Convertible Preferred Stock ("Series E Preferred Stock") upon consummation of the proposed Phase 2 investment and would bring the total C Media Phase 2 investment in YOU On Demand to $12 million USD (the Bridge Note conversion plus an additional issuance and purchase of $10 million USD of Series E Preferred Stock).
In addition, C Media and YOU On Demand have agreed to extend the Phase 2 investment deadline from October 31, 2013 to December 4, 2013. The Phase 2 purchase price remains $1.75 per share for Series E Preferred Stock and C Media has granted the Company the one-month extension for executing definitive documentation and satisfying the original closing conditions, as set forth in their agreement.
As previously disclosed in early July, C Media made an initial $4 million USD investment in YOU On Demand, acquiring approximately 2.3 million shares of 4% Series D Convertible Preferred Stock at $1.75 per share. Series D shares are convertible on a one-for-one basis for YOD common shares. With the consummation of the Phase 2 investment, the total C Media investment including Phase 1, conversion of the Bridge Note and Phase 2, if concluded, would total $16 million USD.
Mr. Xuesong Song, co-founder, Chairman and CEO of C Media stated, "This increased investment in YOU On Demand further underscores C Media's growing confidence in the YOU On Demand team and represents what we believe is an exciting opportunity to jointly capitalize on China's fast-growing mobile and digital cable entertainment space together with a truly innovative partner. Based on their satisfaction of certain additional closing conditions that we anticipate will be completed prior to the December deadline, we expect to further expand upon our current $6 million investment in YOU On Demand later this year."
Shane McMahon, Chairman of YOU On Demand, stated, "We are extremely pleased with the working relationship we have developed with C Media over the past several months and appreciate their continued support and confidence. We look forward to making additional progress with the execution of our business plan, and specifically doing so with our C Media partnership."
YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers.
For a more detailed summary of the material provisions of this strategic investment, please see the Company's reports on Form 8-K that have been filed with the Securities and Exchange Commission at www.sec.gov.
About C Media Limited (www.cmmobi.com)
Founded in 2004, C Media is a mobile internet company offering a variety of mobile video solutions and related value-added services through the networks of the PRC telecommunications operators including China Mobile, China Unicom and China Telecom. The company produces online community applications for video, music, movie and targeted marketing, and is dedicated to building an open mobile internet video platform. In 2007, it established a joint venture with China National Radio (CNR) offering mobile video services. In the last few years, the company has developed into a market leader with rich media contents and established distribution channels. In 2012 and 2011, the company ranked 3rd and 23rd in the winner lists of Deloitte Technology Fast50™ China, respectively; it was also ranked 6th and 133rd in the winner lists of Deloitte Technology Fast500™ Asia Pacific in the past two years.
C Media is headquartered in Beijing with more than 400 employees. It has wholly owned subsidiaries and branches in Shanghai, Tianjin, Wuhan, Chengdu, Xi'An, Harbin, Jinan, and Shenzhen. The company has received certifications for High and New Technology Enterprises, Software Enterprises, and ISO9001. It also holds the licenses and permits of Audio/Video Programs Dissemination via Information Networks, Value-added Service Business, Radio and Television Program Production, Internet Culture Operation, together with more than 40 software copyrights and patents.
About YOU On Demand Holdings, Inc. (www.yod.com)
YOU On Demand (NASDAQ: YOD) is the first national Video On Demand platform in China. The Company offers premium content, including leading Hollywood and China-produced movie titles, to customers across China through its Transactional Video On Demand (TVOD), Subscription Video On Demand (SVOD) and Near Video On Demand (NVOD) services. YOU On Demand has secured alliances with leading global media operators and content developers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities in China, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered in New York, NY with its China headquarters in Beijing.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
SOURCE YOU On Demand Holdings, Inc.