Streamedia Co-Founders, Via Investment Entities and Trusts, Provide Financing
Business Wire, Jan 5, 2001
Business & High Tech Editors
NEW YORK--(BUSINESS WIRE)--January 5, 2001
Streamedia Communications, Inc. (TM) (NASDAQ: SMIL, SMILW; BOS: STA, STAW), New York (www.streamedia.net) and Los Angeles (www.bijoucafe.com), a U.S.-based streaming media services company and global broadband technology provider for rich media content, today announced that its co-founders, Gayle Essary, Chairman, and James D. Rupp, a Director, in concert with their respective investment companies, ESCO Capital Management Co., Austin, TX, and Web2Ventures, Ltd., Hasbrouk Heights, NJ, have sold 250,000 combined shares in order to provide the company with an interim round of financing.
The co-founders took this action to provide interim working capital for the company until additional filings can be completed. The broker was instructed to sell the shares after the markets had closed.
Neither Essary nor Rupp nor any of their related companies or entities will receive any of the proceeds of the sale, which are being passed on to the company interest free, according to Henry Siegel, President and CEO. "The company owes Mr. Essary and Mr. Rupp a debt of gratitude for stepping up to assist in this interim period." He said the company will issue new shares to the two co-founders to replace the shares sold.
Additional shares from the principals, as well as from the ESCO Trusts and their principals, may be similarly registered during the interim period. All such shares will be sold in a similar manner, and all proceeds from all shares utilized in this fashion will be provided directly to the company.
ABOUT STREAMEDIA:
Streamedia Communications, Inc. (TM) (NASDAQ: SMIL, SMILW; BOS: STA, STAW), located at www.streamedia.net, is a dynamic broadband services company that redefines how businesses communicate utilizing the power of the Internet and streaming media. As part of its overall streaming solution, Streamedia conceptualizes and designs its clients' IT infrastructure to optimize their streaming strategy as well as provide web design, application development, third-party technology integration, encoding and hosting services. The Company has recently signed a Letter of Intent to acquire a strategic interest in Nomad General Corp., A.G., Zurich (www.nomad.ch), with a warrant to acquire the entire company."
Additionally, the acquisition of the celebrated Bijou Cafe (www.bijoucafe.com), touted as a world-class showcase for independent films, has advanced Streamedia.Net's presence in the critical online, and offline, film distribution industry. The company has been referenced by U.S. Bancorp Piper Jaffray, whose analysts concluded that "streaming media is the next macro growth driver on the Internet ... the Internet of tomorrow (two to five years) will resemble television of today in terms of audio and video quality, while enabling users to control the media viewing experience." The research report is located at: gotoanalysts.com.
ABOUT ESCO CAPITAL:
ESCO Capital Management Company, Austin, Los Angeles and New York, (www.escocapital.com) is a private investment and management firm with diverse interests and a concentration on new media. The company participates either directly or via its principal or the ESCO Trusts. Todd Essary and Lisa Westfall, Austin, are Co-Managing Directors of the ESCO Trusts. Essary, the principal of ESCO, also serves as Chairman of the Board for Streamedia Communications, Inc. (www.streamedia.net), President of the non-profit Streaming Media Alliance, Inc. (www.streamingmedialliance.org) and Executive Chairman of Investrend Communications, Inc. (www.investrend.com). Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.
Factors that could cause or contribute to such differences include continued acceptance of the Company's products in the marketplace, the timing of significant orders, delays in the Company's ability to develop or ship new products, market acceptance of new products, competitive factors, general economic conditions, currency fluctuations, and other risks detailed in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission.
By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
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