PLAINVIEW, NY — (Marketwire) — 09/25/12 — NeuLion, Inc. (TSX: NLN), the leading provider for delivering live and on-demand content to Internet-enabled devices, announced today the closing of a CDN$5 million private placement consisting of units in the aggregate amount of CDN$4,556,535 million and a convertible note exercisable upon stockholder approval for units in the amount of CDN$533,100.
NeuLion sold 22,782,674 units at CDN$0.20 each, with each unit consisting of one share of common stock and one-half of a common stock purchase warrant and each full warrant entitling the holder thereof to purchase one share of common stock at US$0.30 for 30 months following closing. Charles B. Wang, the Chairman of the Company, had originally committed to purchase CDN$1 million of units, but due to oversubscription instead purchased 2,334,500 units for CDN$466,900 and loaned the Company CDN$533,100 that, upon receipt of stockholder approval, shall be convertible to purchase 2,665,500 units. G. Scott Paterson, the Vice Chairman of the Company, purchased 1,745,000 units for CDN$349,000.
Nancy Li, the CEO of the Company, said: “We are delighted to welcome new institutional and retail investors as shareholders of NeuLion.”
The warrants that form part of the units are exercisable on a cashless basis and as such, if and when exercised, the Company will not receive any cash proceeds.
D&D Securities Inc., the agent for a portion of the subscriptions, received from the Company a cash commission of CDN$299,251 and 748,127 broker-s warrants. Each broker-s warrant is exercisable for one broker unit at US$0.21 at any time before the 30-month anniversary of the offering closing date. Each broker-s unit consists of one share of common stock and one-half of a common stock purchase warrant, and each full warrant entitles the holder thereof to purchase one share of common stock at US$0.30 for 30 months following closing. The Company will also pay certain fees and expenses of the agent in connection with the private placement.
The net proceeds of over CDN$4,750,000 from the private placement will be used by the Company for general working capital purposes.
Founded in 2000, NeuLion, Inc. (TSX: NLN) offers the true end-to-end solution for delivering live and on-demand content to any Internet-enabled device. NeuLion enables content owners and distributors, cable operators and telecommunications companies to capitalize on the massive consumer demand for viewing video content on PCs, smartphones, iPads and other similar devices. NeuLion-s customers include major entertainment, sports, global content and news companies. NeuLion is based in Plainview, NY. For more information about NeuLion, visit .
Certain statements herein are forward-looking statements and represent NeuLion-s current intentions in respect of future activities. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. Forward-looking statements can be identified by the use of the words “will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might” occur or be achieved and other similar expressions. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion-s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to realize some or all of the anticipated benefits of our partnerships; general economic and market segment conditions; our customers- subscriber levels and financial health; our continued relationships with our content partners; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the “Risk Factors” section of NeuLion-s most recent annual report on Form 10-K available on and filed on as well as in NeuLion-s most recent annual MD&A filed on .
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