LOS ANGELES, March 2, 2012 /PRNewswire/ -- Mandalay Digital Group, Inc. (OTC BB: MNDLE) today announced that holders of the Company's $10 million convertible debt, as previously announced on January 4, 2012, have agreed to convert 100% of their convertible debt holdings to shares of the Company's Common Stock at $0.70 per share. In addition, a new investor has committed to a $2 million investment in common stock in the company, also priced at $0.70 per share.
"This commitment and capital expansion reflects a vote of confidence by our investors that Mandalay is on track with our transformation of the Company and the execution of our aggressive growth strategy," commented Peter Adderton, Chief Executive Officer of Mandalay Digital Group. "We are committed to building the Mandalay Digital Group into a powerhouse in the mobile content distribution and mobile communications services marketplace, and this agreement is another important step in that process. This conversion will further strengthen our balance sheet, better positioning us to take advantage of the phenomenal market opportunities for organic growth and opportunistic acquisitions. This will allow us to continue to expand Mandalay's technology, brand and awareness to emerge as a leader in the highly-fragmented mobile content space."
Mobile is one of the fastest growing content distribution channels—delivering almost $40 billion in media entertainment content in 2011, and major brands and media organizations are increasingly using mobile, not only to distribute content, but to also drive awareness of other media like films, TV, music, sports events, and other new media. The mobile channel is unmatched in its level of engagement with the individual consumer, and the Company believes it could ultimately be the largest channel for media distribution.
About Mandalay Digital Group
Mandalay Digital Group is at the convergence of internet media content and mobile communications. It delivers a mobile services platform that works with mobile operators and third-party publishers to provide portal management, user interface, content development and billing technology that enables the responsible distribution of mobile entertainment. Mandalay Digital is headquartered in Los Angeles and has offices in Europe and Latin America to support global sales and marketing. For additional information, visit www.mandalaydigital.com.
Forward Looking Statement
Statements in this news release concerning future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements. These factors include uncertainties as to levels of orders, ability to record revenues, release schedules, market acceptance of new products, changes in economic conditions and market demand, pricing and other activities by competitors, and other risks including those described from time to time in the Company's filings on Forms 10K and 10Q with the Securities and Exchange Commission (SEC), press releases and other communications.
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SOURCE Mandalay Digital Group, Inc.