Atlanta & New York, Nov. 28, 2012 (GLOBE NEWSWIRE) -- Remark Media, Inc. (Nasdaq: MARK), a global digital media
company, announced today that it has received $1.8 million in
convertible debt financing from Digipac, LLC, a lender controlled
by and in part owned by Remark Media's Chairman and Co-Chief
Executive Officer, Kai-Shing Tao. Digipac, which was established to
provide capital for Remark Media, consists of a global group of
media and technology investors. The proceeds will be used to
finance the Company's operations, monetize its assets, and fund
internal growth as it seeks future acquisitions in the global
digital media space.
"I believe strongly in the future of Remark Media. This
financing will allow it to pursue new opportunities to create value
for its shareholders," said Mr. Tao. "Having been a director of
Remark Media since 2007, I'm very enthusiastic about our
new direction. Few companies have as rich a history in digital
media and international emerging markets as Remark Media, and I
look forward to putting that to use in creating future
success."
Remark Media intends to acquire value enhancing businesses that
can be accelerated with its expertise and competencies in digital
media development and operations. Since 2006, the Company has
launched digital media businesses in China, Brazil and the United
States, covering areas including entertainment, health, personal
finance, and sports, among others.
The Convertible Note issued for the financing matures in two years
with a 6.67% annual interest rate, and is convertible into Common
Stock of the Company at the rate of $1.30 per share. This
represents an approximately 33% premium to the average closing
price of the Company's Common Stock for the ten trading days prior
to entrance into the agreement, and an approximately 50% premium to
the closing price on the day of entrance into the agreement.
Expected net proceeds are $1.7 million. The Convertible Note and
all terms associated with it were negotiated and approved by the
Audit Committee of the Board.
About Remark Media:
Remark Media, Inc.(Nasdaq: MARK) is a global digital media company focused
on creating destinations that merge engaging content with rich
social interaction. Remark Media owns and operates a portfolio of
personal finance digital brands including Dimespring.com,
Banks.com, IRS.com and FileLater.com. The Company is the exclusive
digital publisher in China and Brazil for translated content from
HowStuffWorks.com, a subsidiary of Discovery Communications.
BoWenWang (bowenwang.com.cn) and ComoTudoFunciona
(hsw.com.br) provide readers in China and Brazil
with thousands of articles about how the world around them works,
serving as destinations for credible, easy-to-understand reference
information. Remark Media is also a founding partner and developer
of Sharecare, a highly searchable social Q&A
healthcare platform organizing and answering health and wellness
questions. The Company is headquartered in Atlanta with additional
operations in New York, Beijing and Sao Paulo. Additional
information is available on its corporate website at remarkmedia.com.
Forward-Looking Statements:
This press release contains "forward-looking statements", as
defined in Section 27A of the Securities Act of 1993, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements may be in the future tense, and often
include words such as "anticipate", "expect", "project", "believe",
"plan", "estimate", "intend", "will" and "may". These statements
are based on current expectations, but are subject to certain risks
and uncertainties, many of which are difficult to predict and are
beyond the control of Remark Media. Relevant risks and
uncertainties include those referenced in Remark Media's filings
with the SEC, and include but are not limited to: our losses and
need to raise capital; successfully developing and launching new
digital media properties; successfully executing upon the
acquisition of new businesses; challenges in attracting users to
and selling advertising for websites; restrictions on intellectual
property under agreements with Sharecare and third parties;
challenges inherent in developing an online business; reliance on
key personnel; general industry conditions and competition; and
general economic conditions, such as advertising rate, interest
rate and currency exchange rate fluctuations. These risks and
uncertainties could cause actual results to differ materially from
those expressed in or implied by the forward-looking statements,
and therefore should be carefully considered. Remark Media assumes
no obligation to update any forward-looking statements as a result
of new information or future events or developments, except as
required by law.