Remark Media Announces $1.8 Million Convertible Debt Financing
Atlanta & New York, Nov. 28, 2012 (GLOBE NEWSWIRE) -- Remark Media, Inc.
(Nasdaq: MARK), a global digital media company, announced today that it has
received $1.8 million in convertible debt financing from Digipac, LLC, a
lender controlled by and in part owned by Remark Media's Chairman and Co-Chief
Executive Officer, Kai-Shing Tao. Digipac, which was established to provide
capital for Remark Media, consists of a global group of media and technology
investors. The proceeds will be used to finance the Company's operations,
monetize its assets, and fund internal growth as it seeks future acquisitions
in the global digital media space.
"I believe strongly in the future of Remark Media. This financing will allow
it to pursue new opportunities to create value for its shareholders," said Mr.
Tao. "Having been a director of Remark Media since 2007, I'm very enthusiastic
about our newdirection. Few companies have as rich a history in digital media
and international emerging markets as Remark Media, and I look forward to
putting that to use in creating future success."
Remark Media intends to acquire value enhancing businesses that can be
accelerated with its expertise and competencies in digital media development
and operations. Since 2006, the Company has launched digital media businesses
in China, Brazil and the United States, covering areas including
entertainment, health, personal finance, and sports, among others.
The Convertible Note issued for the financing matures in two years with a
6.67% annual interest rate, and is convertible into Common Stock of the
Company at the rate of $1.30 per share. This represents an approximately 33%
premium to the average closing price of the Company's Common Stock for the ten
trading days prior to entrance into the agreement, and an approximately 50%
premium to the closing price on the day of entrance into the agreement.
Expected net proceeds are $1.7 million. The Convertible Note and all terms
associated with it were negotiated and approved by the Audit Committee of the
About Remark Media:
Remark Media, Inc.(Nasdaq: MARK) is a global digital media company focused on
creating destinations that merge engaging content with rich social
interaction. Remark Media owns and operates a portfolio of personal finance
digital brands including Dimespring.com, Banks.com, IRS.com and FileLater.com.
The Company is the exclusive digital publisher in China and Brazil for
translated content from HowStuffWorks.com, a subsidiary of Discovery
Communications. BoWenWang (bowenwang.com.cn) and ComoTudoFunciona (hsw.com.br)
provide readers in China and Brazil with thousands of articles about how the
world around them works, serving as destinations for credible,
easy-to-understand reference information. Remark Media is also a founding
partner and developer of Sharecare, a highly searchable social Q&A healthcare
platform organizing and answering health and wellness questions. The Company
is headquartered in Atlanta with additional operations in New York, Beijing
and Sao Paulo. Additional information is available on its corporate website at
This press release contains "forward-looking statements", as defined in
Section 27A of the Securities Act of 1993, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements may be
in the future tense, and often include words such as "anticipate", "expect",
"project", "believe", "plan", "estimate", "intend", "will" and "may". These
statements are based on current expectations, but are subject to certain risks
and uncertainties, many of which are difficult to predict and are beyond the
control of Remark Media. Relevant risks and uncertainties include those
referenced in Remark Media's filings with the SEC, and include but are not
limited to: our losses and need to raise capital; successfully developing and
launching new digital media properties; successfully executing upon the
acquisition of new businesses; challenges in attracting users to and selling
advertising for websites; restrictions on intellectual property under
agreements with Sharecare and third parties; challenges inherent in developing
an online business; reliance on key personnel; general industry conditions and
competition; and general economic conditions, such as advertising rate,
interest rate and currency exchange rate fluctuations. These risks and
uncertainties could cause actual results to differ materially from those
expressed in or implied by the forward-looking statements, and therefore
should be carefully considered. Remark Media assumes no obligation to update
any forward-looking statements as a result of new information or future events
or developments, except as required by law.
CONTACT: Remark Media
+1 (770) 821-6670
Remark Media Logo
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