WebMediaBrands Inc. Secures Additional Funding and Reduces Financing Charges
November 15 2011 - 7:00AM
Business Wire
WebMediaBrands Inc. (Nasdaq: WEBM) today announced that it had
obtained a $1,750,000 loan from Alan Meckler, the Company’s Chief
Executive Officer, and that Mr. Meckler had agreed to reduce the
effective interest on an existing loan to the Company by $480,000
per year. The new and existing loans bear interest at the fixed
rates of 3.1% and 3.4% per annum, respectively, and both loans will
mature in 2016. No principal payments are required on either loan
until July 2014. The Company also issued stock options to Mr.
Meckler to purchase one million shares of common stock. The stock
options were issued under the Company’s existing 2008 stock option
plan.
Don O’Neill, the Company’s Chief Financial Officer, stated:
“These are very favorable transactions for the Company as we were
able to secure financing at a low fixed interest rate and eliminate
a charge on our existing financing that would have totaled
$2,160,000 if that financing remained outstanding until maturity.
The new options represent only minor dilution to shareholders as
the Company recently purchased 770,000 shares of its common stock
under its stock repurchase program. All shareholders will benefit
from the Company’s enhanced cash position and the elimination of a
financing charge that will help the Company to more quickly reach
profitability.”
About WebMediaBrands Inc.
WebMediaBrands Inc. (Nasdaq: WEBM)
(http://www.webmediabrands.com), headquartered in New York, NY, is
a leading Internet media company that provides content, education,
and career services to social media, traditional media and creative
professionals through a portfolio of vertical online properties,
communities, and trade shows. The Company’s online business
includes: (i) mediabistro.com, a leading blog network providing
content, education, community, and career resources (including the
industry's leading online job board) about major media industry
verticals including social media, traditional media, Facebook, TV
news, sports media news, advertising, public relations, publishing,
design, mobile, and the Semantic Web; (ii) InsideNetwork.com, a
leading network of online properties dedicated to providing
original market research, data services, news, events, and job
listings on the Facebook platform, social gaming, and mobile
applications ecosystems; and (iii) AllCreativeWorld.com, a leading
network of online properties providing content, education,
community, career, and other resources for creative and design
professionals. The Company’s online business also includes
community, membership and e-commerce offerings including a
freelance listing service, a marketplace for designing and
purchasing logos and premium membership services. The Company’s
trade show and educational offerings include conferences, online
and in-person courses, and video subscription libraries on topics
covered by the Company’s online business.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release that are not
historical facts are "forward-looking statements" under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The
potential risks and uncertainties address a variety of subjects
including, for example: risks associated with acquisitions,
including integration of operations; general economic conditions;
the competitive environment in which WebMediaBrands competes; and
the unpredictability of WebMediaBrands’s future profitability,
revenues, expenses, cash flows and stock price. For a more detailed
discussion of such risks and uncertainties, refer to
WebMediaBrands’s reports filed with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934. The
forward-looking statements included herein are made as of the date
of this press release, and WebMediaBrands assumes no obligation to
update the forward-looking statements after the date hereof, except
as required by law.
All current WebMediaBrands press releases can be found online at
http://www.webmediabrands.com/corporate/press.html?c=mbprel
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