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iMedia International Completes Reorganization, Sets Sights on Expanding Digital Content Distribution Across the Web
iMedia Also Completes Reverse Stock Split, Changes Ticker Symbol to IMED.PK and Raises $750,000
| Source: iMedia International, Inc.
SANTA MONICA, CA--(Marketwire - January 3, 2008) - iMedia International, Inc. (PINKSHEETS : IMED ), an interactive content solutions company, today announced that it
has entered into a reorganization agreement to convert outstanding debt,
preferred stock and certain accredited vendor payables into equity,
strengthening the company's financial position. In addition, the
reorganization allows iMedia to focus on expanding the distribution of
digital brands and high-quality, interactive content. The company's
flagship product, Hollywood
Previews, which has historically been distributed on CD-ROMs through
insert programs with major newspapers, has been repositioned for online
distribution with agreements already in place servicing online properties
in major metropolitan markets such as Los Angeles, Atlanta, South Florida,
Pittsburgh, and internationally in Toronto, Canada, with several additional
markets scheduled to be added throughout 2008.
As part of the agreement, more than $15 million of iMedia's current
liabilities and preferred stock will be exchanged for equity representing
approximately 80 percent of the company's outstanding shares of common
stock. The agreement also required iMedia to adopt a stock ownership plan, enter into employment
agreements with three of the company's executive officers and directors,
and obtain stockholder approval of and effect a 26-for-1 reverse stock
split of outstanding shares of common stock. The reverse split was approved
in August 2007 and took effect on December 21, 2007. Beginning January 2,
2008, iMedia's ticker symbol changed to IMED.PK.
"For the past couple of years, iMedia has been constrained by a challenging
capital position," said Henry Williamson, chief executive officer of iMedia
International, Inc. (PINKSHEETS : IMED ). "Today's announcement is about
letting the world know that iMedia
is alive and well, armed with a new vision that will leverage our expertise
and technology, as well as the competitive advantages that we have attained
from prior investments, to expand our reach across the web. During the last
several months, we have made difficult decisions in terms of executive
leadership and staffing, and as a result, iMedia is now a much more agile
organization that has the right products and people to be successful."
iMedia (PINKSHEETS : IMED ) has raised $750,000 under terms of a financing
agreement with Williamson, who was issued 5,082,504 shares of iMedia's
common stock in exchange for the investment. In addition, under the terms
of the reorganization agreement, iMedia may issue up to 5,082,504 additional shares of common
stock for up to $750,000 of additional consideration for up to six weeks
from the closing date.
"Being able to reorganize our debt and raise the necessary capital to
continue to invest in our digital content and technology
was tremendously important for our company," added Williamson. "My personal
investment and our executive management team's ongoing deferment of a
quarter of its monthly compensation demonstrate our commitment to iMedia
and our confidence in the potential of our products and services. We know
we can be successful, and this is the first of several announcements that
will help our shareholders get a better understanding of the new iMedia."
iMedia (PINKSHEETS : IMED ) has filed an 8-K with the SEC that provides more
specific details on the company's reorganization. Shareholders and
potential investors can read the 8-K in its entirety at www.imedia-us.com.
About iMedia International, Inc.
iMedia International, Inc. (PINKSHEETS : IMED ) is an interactive content
solutions company founded on the premise of creating high ROI marketing
programs using new digital applications and entertainment content
aggregation to help clients truly engage their customers in the
ever-changing media landscape. iMedia creates custom digital marketing
solutions and proprietary software marketing systems with comprehensive
media reporting feedback for its clients, including strategic planning,
content origination, aggregation and production, online and disc
audio/video design, authoring, editing and compression, disc packaging,
manufacturing and distribution. iMedia's flagship product, Hollywood
Previews, is available online as a co-branded partner or through
"white-label" relationships, and through co-sponsored CD-ROM insert
programs in major newspapers and magazines. Hollywood Previews delivers
several hours of digital entertainment content covering everything from
movies to video games. iMedia's Digital Direct product line features
iMedia's proprietary iReporting real-time, online tracking system, which
provides quantitative data on disc viewer usage patterns and effectiveness
of iMedia marketing and promotional campaigns. Clients include several
Fortune 500 companies. For more information on iMedia International, visit
www.imedia-us.com.
Forward-Looking Statements
The information in this news release includes certain forward-looking
statements that are based upon assumptions that in the future may prove not
to have been accurate and are subject to significant risks and
uncertainties, including statements regarding the future financial
performance of the Company. Although the Company believes that the
expectations reflected in its forward-looking statements are reasonable, it
can give no assurance that such expectations or any of its forward-looking
statements will prove to be correct. Factors that could cause results to
differ include, but are not limited to, successful performance of internal
plans, product development and acceptance, the impact of competitive
services and pricing, general economic risks and uncertainties, and various
other information detailed from time to time in the Company's filings with
the United States Securities and Exchange Commission. The Company
undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date
thereof. Please refer to the reports previously filed with the SEC by the
Company at http://www.sec.gov.