Viggle Secures $30 Million in Investment to Fuel Innovation for its Marketing and Rewards Platform
October 29 2014 - 8:00AM
Business Wire
Company’s CEO Robert F.X. Sillerman Provides
Funding to the Company
Viggle Inc. (NASDAQ:VGGL), the entertainment marketing and
rewards platform that includes the Viggle, NextGuide and Wetpaint
brands, announced that it has entered into a securities purchase
agreement with the Sillerman Investment Company (“SIC III”), an
entity owned by the Company’s Chief Executive Officer Robert F.X.
Sillerman, to provide for $30 million of investment into the
Company. The Company intends to use the net proceeds to repay $15
million of existing indebtedness and for working capital purposes
including marketing, and to fuel innovation for its marketing and
rewards platform.
Under the terms of the securities purchase agreement, SIC III
has agreed to purchase certain securities issued by the Company for
a total of $30 million, consisting of a $20 million line of credit
and the $10 million in a new class of Series C Convertible
Preferred Stock. The Series C Convertible Preferred Stock is
convertible into shares of the Company’s common stock at $4 per
share. Additionally, the Company has also agreed to issue to SIC
III warrants to purchase 1,500,000 shares of the Company’s common
stock, as amounts are funded under the line of credit and for the
preferred stock. The exercise price of the warrants will be 10
percent above the closing price of the Company’s shares on the date
prior to the issuance of the warrants. Exercise of the warrants
will be subject to approval of the Company’s stockholders.
Greg Consiglio, President and COO of Viggle Inc., said, “This
financing is a milestone for Viggle, as it will further drive our
initiative to become one of the largest and leading marketing and
rewards platforms. We continue to find ways to engage our users
through fostering an ecosystem that is all-encompassing with the
most advanced features and functionalities to our avid fans and
users and this funding will help propel us further for future
opportunities. This significant capital infusion from our Chief
Executive Officer, Mr. Sillerman, is indication of the Company’s
personal commitment to driving our monetization efforts and
generating growth in the best value to our shareholders.”
Further details on the securities purchase agreement can be
found at:
http://www.sec.gov/Archives/edgar/data/725876/000072587614000054/viggle8k10-24x14siciiiloan.htm.
About Viggle Inc.
Viggle is an entertainment marketing and rewards platform whose
app rewards its members for watching TV shows and discovering new
music. The Viggle Platform had a total reach of 22.5 million in
July 2014, including over 6.2 million Viggle registered users.
Since its launch, Viggle members have redeemed nearly $19 million
in rewards for watching their favorite TV programs and listening to
music. Members can also use Viggle Store, a rewards destination
where they can redeem their Viggle Points for music downloads. In
addition, Viggle operates Wetpaint, which offers entertainment and
celebrity news online; NextGuide, maker of technology that helps
consumers search for, find, and set reminders for TV shows and
movies; and Choose Digital, a digital marketplace platform that
allows companies to incorporate digital content into existing
rewards and loyalty programs in support of marketing and sales
initiatives. For more information, visit www.viggle.com or follow
us on Twitter @Viggle.
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated. All
information provided in this press release is as of the date of
this release. Except as required by law, Viggle Inc. undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
Media:DKC Public RelationsParis Tyler,
212-981-5162paris_tyler@dkcnews.comorInvestor Relations:ViggleJohn
C. Small, 646-738-3220CFO, Viggle Inc.orIRTH CommunicationsRobert
Haag, 1-866-976-4784Managing PartnerVGGL@irthcommunications.com