China-based Video On Demand (VOD) service provider YOU On Demand Holdings, Inc. (NASDAQ: YOD) and China-based private media and investment conglomerate Bruno Wu´s Sun Seven Stars Media Group Limited (SSS) have restructured the previously announced strategic investment and closed the transaction, the companies said.
SSS made a USD 10 million investment in YOD at USD 2.20 per share of common stock, an approximate 10 percent premium over the volume-weighted average closing price of the common stock as quoted by NASDAQ during the last 60 trading days, and received two-year warrants to purchase an additional 1,818,182 shares of YOD at USD 2.75 per share, and a six-month promissory note, which is automatically converted upon shareholder approval, into an additional 9,208,860 shares of YOD in exchange for license rights to content controlled by SSS.
Exercise of the warrant and conversion of the note, along with payment of up to 15 million of earn-out shares issuable to SSS´ affiliate, Tianjin Enternet Network Technology Limited, are all subject to receipt of YOD shareholder approval.
Approval of the issuance of the remaining shares of YOD, which issuances were approved by both companies´ boards of directors, is subject to approval by holders of a majority of the outstanding shares of YOD common stock. YOD will seek to obtain the necessary shareholder approvals in the first quarter of 2016.
YOU On Demand is a multi-platform entertainment service company delivering premium content, including leading Hollywood movie titles, to customers across China via Subscription Video On Demand and Transactional Video On Demand. The company has secured alliances with leading global media operators and content developers. The company is headquartered in both New York, NY and Beijing, China.
Bruno Wu is the founder, co-chairman and CEO of Sun Seven Stars Media Group Limited, a private media and investment conglomerate in China. It has a presence in over ten major cities in the world including: Beijing, Shanghai, Tianjin, Hong Kong, New York, LA, Paris, London, Toronto, Seoul and Scandinavia countries.