Music Streaming Company Led by Recording Industry Leaders Goes
Public, Raises $4.075M
Raditaz, LLC Announced Today It Completed an Alternative Public
Offering to Become a Wholly Owned Subsidiary of Duane Street Corp.
and Completed Simultaneous $4.075M Private Placement Offering
GLASTONBURY, CT--(Marketwired - Jan 29, 2014) - Duane Street
Corp. ("Duane Street" or the "Company") (OTCBB: DUSR), a Delaware
corporation, announced today that it completed an acquisition on
January 28, 2014, of Raditaz, LLC, a Connecticut limited liability
company. The Company is commencing the process of changing its
name to CÜR Media, Inc. and effectuating a forward stock split of
approximately 16.5 for 1.
The Company is developing CÜR Music (www.curmusic.com), a hybrid
music streaming service for mobile devices and the web that blends
the best of internet radio services like Pandora with on-demand
services like Spotify. The Company plans to launch its web and
mobile applications in Q4 of 2014.
The Company is based in Connecticut, and is led by digital media
entrepreneur Tom Brophy and entertainment and music industry
veterans John A. Lack (creator of MTV, Nickelodeon, ESPN2 and The
Movie Channel) and Bob Jamieson (former Chairman/CEO of RCA
Records). The Board of Directors consists of Mr. Brophy, Mr. Lack
as Chairman and Mr. Jamieson as Vice Chairman.
The Company began testing its service in early 2012 as
"Raditaz", a DMCA compliant internet radio product developed for
both the iPhone and Android platforms. During beta, Raditaz
had over 150,000 monthly unique users. The Company has taken
Raditaz offline as it enhances the platform and product offerings
for the transition to CÜR Music and its launch later this year.
Immediately prior to the closing of the merger, Duane Street
completed a closing of the sale of 246,913 units in a private
offering to accredited investors, at a price of $16.50 per unit,
resulting in gross proceeds to Duane Street of $4,075,000 (before
deducting commissions and expenses of the offering). Each unit
consists of one share of the Company's common stock and one five
year warrant to purchase one share of common stock at an exercise
price of $33.00 per share all of which shall be subject to the
proposed stock split. Gottbetter Capital Markets, LLC, was the
exclusive placement agent for the private placement offering and
EDI Financial, Inc. was a sub-agent. Intuitive Venture
Partners, LLC, was the exclusive financial advisor to Raditaz,
LLC.
The Company's Chief Executive Officer, Tom Brophy, said, "The
overwhelming positive response from our investors in this private
placement is a strong endorsement of our products potential, and
recognizes the need for a streaming music product that meets the
needs of today's music listeners. We expect the capital raised
from this financing will help complete the development of CÜR music
streaming service with a targeted launch of Q4 2014." The Company
intends to use the net proceeds of the offering, principally for
development of the Company's mobile applications and website, as
well as general and administrative expenses.
In addition, the Company's Board of Directors adopted, and its
stockholders have approved, a 2014 Equity Incentive Plan, which
provides for the issuance of incentive awards of up to 242,367
shares of the Company's common stock to officers, key employees,
consultants and directors also subject to the proposed stock
split.
In accordance with "reverse merger" accounting treatment, the
Company's historical financial statements as of period ends, and
for periods ended, prior to the merger will be replaced with the
historical financial statements of Raditaz, LLC prior to the merger
in all future filings with the Securities and Exchange
Commission.
The securities sold in the private placement have not been
registered under the Securities Act of 1933 and may not be resold
absent registration under, or exemption from registration under,
such Act.
For more information, please visit www.curmusic.com.
About Duane Street Duane Street is developing CÜR Music, a
hybrid music streaming service, for mobile devices and the web that
intersects internet radio services like Pandora and on-demand
services like Spotify. The Company is planning to launch its web
and mobile applications in the 4th quarter of this year.
Forward-Looking Statements Any statements contained in this
press release that do not describe historical facts may constitute
forward-looking statements. Forward-looking statements may
include, without limitation, statements regarding (i) the plans and
objectives of management for future operations, including plans or
objectives relating to the development of commercially viable
streaming music product, (ii) a projection of income (including
income/loss), earnings (including earnings/loss) per share, capital
expenditures, dividends, capital structure or other financial
items, (iii) the Company's future financial performance and (iv)
the assumptions underlying or relating to any statement described
in points (i), (ii) or (iii) above. Such forward-looking
statements are not meant to predict or guarantee actual results,
performance, events or circumstances and may not be realized
because they are based upon the Company's current projections,
plans, objectives, beliefs, expectations, estimates and assumptions
and are subject to a number of risks and uncertainties and other
influences, many of which the Company has no control
over. Actual results and the timing of certain events and
circumstances may differ materially from those described by the
forward-looking statements as a result of these risks and
uncertainties. Factors that may influence or contribute to the
inaccuracy of the forward-looking statements or cause actual
results to differ materially from expected or desired results may
include, without limitation, the Company's inability to obtain
adequate financing, the length of time associated with development
of mobile applications and related insufficient cash flows and
resulting illiquidity, the Company's inability to expand the
Company's business, lack of product diversification, existing or
increased competition, results of arbitration and litigation, stock
volatility and illiquidity, and the Company's failure to implement
the Company's business plans or strategies.
Mike Barash Founder & CEO Knock Twice m: 650.520.0120 e:
mike@knock2x.com