You On Demand Holdings, Inc. (NASDAQ:YOD) Attracts $25M Investment
The prospects of the $84.3 billion market capped, On demand TV service, You On Demand Holdings, Inc. (NASDAQ:YOD) has been on the ascendency ever since it was disclosed on 31th February that the online media tech start up had signed off on funding agreement with C Media Limited. In lieu of the infusion of funds, You On Demand Holdings, Inc. (NASDAQ:YOD) had issued “Series E Convertible Preferred Stock” of 14.2 million shares. Each preferred stock was priced at $1.75 and through this transaction; the New York registered firm had raised $25 million.
Deal Fine Print
In its filings to the U.S. Securities and Exchange Commission, You On Demand Holdings, Inc. (NASDAQ:YOD) has fixed June 30, 2014 as the cut off for completing the transaction, failing which as per the terms of the “Series E Convertible Preferred Stock Sale Agreement” the pay per view Media player is liable to pay its investors penalty of 1 percent on the principal. The structured deal converts all of the (7 million) “Series A Preferred Stock” owned by You On Demand Holdings, Inc. (NASDAQ:YOD) current Chairman of the Board, Shane B. McMahon into (0.93 million) “Series E Preferred Stock”.
Whole Sale Change In Executive Offices
With the new investors coming in, You On Demand Holdings, Inc. (NASDAQ:YOD) also went in for a major change in its executive management. Mr. Xuesong Song has been appointed as the Executive Chairman of the firm, while Mr. Shane B. McMahon will operate as the firm’s primary executive appointee. The board of directors also underwent a sea change, post the signing of the funding agreement. Two long time directors, “Mr. Michael Birkin and Mr. Michael Jackson” have been replaced by “Messrs. Clifford H. Higgerson, Jin Shi and Arthur Wong”.
Expressing his happiness about the development, Mr. Shane McMahon has been quoted to have said that, “We are excited that C-Media has elected to significantly expand their strategic investment in YOU On Demand and fully fund the company for the foreseeable future”.