Narrowstep Completes $7.1 Million Financing
March 06 2007 - 8:15AM
PR Newswire (US)
NEW YORK and LONDON, March 6 /PRNewswire-FirstCall/ --
Narrowstep(TM) Inc (OTC:NRWS) (BULLETIN BOARD: NRWS) , the TV on
the Internet company, today announced that it has completed a
private placement of its convertible notes and warrants resulting
in gross proceeds to the Company of $7,110,000. In the placement,
the Company issued two-year mandatory convertible notes that bear
interest at 12% per annum, payable at maturity, and five-year
warrants to purchase an aggregate of 3,555,000 shares of common
stock at an exercise price of 0.60 per share, subject to
adjustment. The notes, which were issued at par, will mandatorily
convert at a 10% discount into the securities issued by the Company
in any subsequent private placement that results in gross proceeds
to the Company of at least $3,000,000 or, in the event of a sale of
the Company prior thereto, shares of common stock valued at a
discount of 10% to the per share price to be paid in the Company
sale. The Company has the right to force the cash exercise of the
warrants if the common stock trades at or above $1.80 per share for
at least 20 consecutive trading days. Both the notes and the
warrants contain customary antidilution provisions in the event of
any stock split, reverse stock split, reclassification or
recapitalization of the Company. Investors in the financing
included Granahan McCourt Capital, which is owned by David C.
McCourt, the Company's interim CEO, and Roger L. Werner, a director
of the Company. Narrowstep is the leading provider of IP-delivered
video content based on its award-winning TelVOS(TM) platform -- the
most comprehensive commercial video and audio management system on
the market. Narrowstep brings the best of TV and the best of the
web to help content owners monetize their content through a suite
of tools that allow for a long-form TV-like viewing experience,
integrating social networking and e-commerce opportunities.
Narrowstep customers range from sports organizations to government
agencies, broadcasters and telecommunication providers in Europe,
the United States and Asia. Narrowstep expects to end the year with
over 500 channels launched. Recent launches include ITV, the UK's
top commercial broadcaster, Martial Arts TV, Bebin TV, London TV,
Cycling.tv, as well as the Torino 2006 Paralympic Winter Games. For
a full list of channels as well as live broadcast events, please
visit http://www.narrowstep.com/. About Narrowstep(TM) Inc
Narrowstep(TM) Inc (OTC:NRWS) (BULLETIN BOARD: NRWS) is a leading
provider of Internet-based video content delivery (TV on IP).
Narrowstep's product and service offerings enable customers to
distribute channels of video-based content and provide related
services over the Internet. The Narrowstep system, TelVOS(TM),
enables comprehensive delivery of video content and television-like
programming to mobile, wireless, Internet, broadband and broadcast
services to clients throughout the world. To learn more, visit
http://www.narrowstep.com/. Private Securities The securities
issued in the financing have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or an applicable exemption
from registration requirements. Forward Looking Statement Certain
statements in this news release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known
or unknown risks, including those detailed in the Company's filings
with the Securities and Exchange Commission, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. DATASOURCE:
Narrowstep Inc CONTACT: Lisa VanPatten, CFO of Narrowstep Inc,
+1-609-951-2221, ; or Investors, Jesse Deal of Allen & Caron,
+1-212-691-8087, , for Narrowstep Inc Web site:
http://www.narrowstep.com/
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