NEW YORK, and PRAGUE, Oct. 14 /PRNewswire-FirstCall/ -- KIT digital, Inc. (Nasdaq: KITD), the leading global provider of video asset management solutions (VAMs) for multi-screen IP-based delivery, filed a Form S-3 registration statement yesterday with the U.S. Securities and Exchange Commission, commonly known as a "shelf registration."
Under this shelf registration, KIT digital may sell shares of its common stock in one or more offerings up to a total dollar amount of $250 million over an indeterminate period. Also, pursuant to requirements in the recent acquisition of Brickbox Digital Media, 242,843 shares owned by certain former shareholders of Brickbox were concomitantly filed for registration.
"This shelf filing was procedural, and its specific use or application has yet to be determined," said KIT digital's chairman and CEO, Kaleil Isaza Tuzman. "The filing was precipitated by the fact that our previous $100 million shelf registration, established in 2009, had effectively expired. Our shareholders approved an increase in authorized shares at our annual general meeting several weeks ago, putting us in a position to file this S-3, in line with our standing corporate policy of maintaining a large outstanding shelf in order to maintain maximum strategic flexibility."
"On the buy-side, we expect that our existing strategy of acquiring small companies that complement our current geographical and client vertical reach will continue to be financed out of cash from operations and our existing balance sheet, and does not require additional outside equity capital. However, to the extent that it became feasible to acquire one or more of our top competitors at a reasonable valuation, it is important we have the flexibility to do so—including accessing the capital markets efficiently and quickly. This shelf registration also enhances options and flexibility on the sell-side, as it makes it easier for certain types of privately held buyers to evaluate KIT digital."
"To be clear, with more than $45 million in cash on our balance sheet and strong, positive operating cash-flow, we do not have an immediate need to raise capital for corporate purposes or strategic acquisitions at this time. If we choose to sell shares under this shelf registration, it will be with the purpose of closing on an imminent corporate opportunity. The small number of potentially selling shareholders possess so-called 'piggy-back' registration rights related to our previous acquisition of Brickbox and are not pre-existing holders or company management. For all of the above reasons, we believe this shelf filing is favorable for our current and prospective shareholders."
This press release does not constitute an offer to sell or solicitation of an offer to buy any securities. Any such offer may be made only pursuant to the company's prospectus for the offering and only in national and state jurisdictions in which the offering is registered or exempt from registration and via authorized broker-dealers. The securities offered by the prospectus involve a high degree of risk.
About KIT digital, Inc.
KIT digital (NASDAQ: KITD) is a leading global provider of video asset management solutions (VAMs) for multi-screen IP-based delivery. KIT VX-one, the company's family of end-to-end software platform solutions, enables enterprise clients to acquire, manage and distribute video assets across the three screens of today's world: the personal computer, mobile device, and IPTV-enabled television set. The application of VX ranges from commercial video distribution to internal corporate deployments, including corporate communications, human resources, training, security and surveillance. KIT digital's client base includes more than 1,200 customers across 40+ countries, including The Associated Press, BBC, Best Buy, Bristol-Myers Squibb, Disney-ABC, FedEx, General Motors, Google, Hewlett-Packard, Home Depot, IMG Worldwide, ESPN Star, MediaCorp, News Corp, Telefonica, Universal Studios, Verizon and Vodafone. KIT digital is headquartered in Prague, and maintains principal offices in Atlanta, Beijing, Boston, Buenos Aires, Cairo, Cambridge (UK), Chennai, Cologne, Delhi, Dubai, Kolkata, London, Melbourne (Australia), Mumbai, New York, Singapore, Sofia (Bulgaria), Stockholm and Toronto. For additional information, visit www.kitd.com or follow the company on Twitter at www.twitter.com/KITdigital.
Important Cautions Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" related to the businesses of KIT digital, Inc., which can be identified by the use of forward-looking terminology, such as "believes," "expects", "plans," "intends," "anticipates" and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, statements made by Mr. Isaza Tuzman the company has no immediate needs to raise capital for corporate purposes or strategic acquisitions and that he believes this filing is favorable for the KIT digital's current and prospective shareholders. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein. Certain of these risks and uncertainties are or will be described in greater detail in our public filings with the U.S. Securities and Exchange Commission. KIT digital is not under obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE KIT digital, Inc.