Attached files
| file | filename |
|---|---|
| 8-K - HIPCRICKET, INC. | modavox8k010709.htm |
| EX-99.2 - HIPCRICKET, INC. | ex99-2.htm |
| EX-99.1 - HIPCRICKET, INC. | ex99-1.htm |
Exhibit 99.3
Modavox
Signs Binding Letter of Intent
Regarding
Internet Radio Business
(PHOENIX and NEW YORK) January 7,
2010 -- Modavox, Inc. (OTCBB:MDVX), Internet broadcasting pioneer and
holder of several patented technologies, today announced the apportion of
certain assets and liabilities related to the Internet Radio division, the
largest Internet-based Talk Radio network that has been broadcasting
uninterrupted since 1997.
In an
effort to further support Modavox’s new business strategy, and in conjunction
with the recent repositioning of other corporate assets, Modavox has executed a
Letter of Intent to transfer tangible and intangible assets related to historic
and current operation of the Internet Radio division. This transaction will
effectively transfer the business operations of the division to World Talk
Radio, LLC, an Arizona based Limited Liability Company to be owned and operated
by VoiceAmerica co-founder and ten year veteran Jeff Spenard, the former
President of Internet Radio and former Board Member of Modavox. The new entity
will continue all business operations to ensure uninterrupted service to all
clients throughout the transition.
As a
result of the transition of these assets and liabilities, Modavox will realize
immediate reduction in net expenses, enabling management to focus all available
resources on the recently announced corporate strategy that includes an expanded
IP licensing structure as well as supporting the development and
commercialization of Marketing Driven Technologies. Furthermore, as part of the
strategy to streamline operations and to create non-encumbered revenues to
support growth businesses, Modavox will receive a perpetual royalty as a
percentage of gross revenue generated by World Talk Radio, LLC for as long as
the new entity provides Internet radio services.
Mark
Severini, Chief Executive Officer, explained the rationale behind the
transaction. “While the Internet Radio Division has served an instrumental role
in the history of Modavox and historically represented the majority of revenue
for the company, after a thorough analysis of our operational divisions, it has
become evident that the revenue growth and contribution margin trends no longer
meet the objectives set forth in our Strategic Plan for our operational
divisions. Internet radio exists within a mature market where growth and
scale remain modest in comparison to our IP licensing strategy and core
operating divisions. The new Modavox strategy represents opportunities for
accelerated revenue growth and high profit margins through emerging and dynamic
markets.”
David
Ide, Modavox Chief Strategy Officer, remarked, “There is nobody better suited
than Jeff Spenard to continue leadership of VoiceAmerica and establish ownership
of this business to drive profitability in a smaller, privately held business
structure. Mr. Spenard’s superior experience and leadership in the industry as
well as his team of exceptional professionals are the main reasons Modavox is in
alliance with World Talk Radio moving forward. We have tremendous confidence in
Mr. Spenard and the entire VoiceAmerica team, and we look forward to sharing in
their success for many years to come.”
Mr.
Spenard was the co-founder of VoiceAmerica and led the acquisition of World Talk
Radio in early 2007. Over the course of his ten-year tenure with the business,
he served as Executive Producer, Network Director, VP of Sales, and most
recently as Internet Radio President. “It is a tremendous honor to continue the
work of those, including myself, who began this effort in 2000 and it is my
desire to further the offering while supporting our World Talk Radio clients and
associates. Modavox has been my focus for over ten years and will continue to be
a strategic partner for years to come.”
Mr.
Severini also stated, “Modavox must focus entirely on our new high growth
business strategy and our IP licensing strategy. This means our capital and
human resources are best allocated in support of our IP licensing efforts and
the operational growth of the three divisions we have created under the Augme
brand. We believe that we have identified an option that should prove beneficial
for all parties. The transaction outlined in the LOI provides Modavox with a
profitable revenue stream that can directly support our licensing efforts and
our high growth business, while providing Mr. Spenard and the new WTR business
an opportunity to establish a successful company in its own right. Above all,
this move represents a significant step toward our goal of becoming cash flow
positive by February 2011, reducing the overall cash needs of the company to
achieve that goal.”
Modavox
Board Chairwoman Ms. Shelly J. Meyers commented that, “One mark of a successful
company is to have a disciplined approach to analyzing its business divisions to
ensure that assets and resources are directed in support of those divisions most
likely to provide superior revenue growth and profitability. This event is just
the latest action in positioning the Company to fulfill our ongoing commitment
to provide the highest value to Modavox Shareholders”.
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About
Modavox
Modavox,
Inc. provides Internet applications and services based upon Marketing-driven
technology platforms that enhance the delivery of marketing communications
through intelligent distribution to all Internet-enabled devices. In
2009, Modavox initiated a comprehensive business growth strategy aimed at fully
leveraging the value of its technology and patent portfolio by accelerating the
advanced development of technology platforms that apply the most valuable
aspects of Modavox’s patents. In addition to the continued operation of BoomBox™
Radio – the largest Internet-based Talk Radio network that has been broadcasting
uninterrupted since 1997 – Modavox now manages three newly defined operating
divisions in the high growth markets of mobile marketing (AD LIFE™), video
content delivery (AD BOOM™) and ad network provisioning (AD SERVE™). These three
divisions, together with patents foundational to targeted Web-based
communications, will enable Modavox to pioneer a new era in marketing and new
media communications with Internet applications and services for targeted
consumers and communities worldwide. For more information,
please visit www.modavox.com.
Forward-Looking
Statements
This
release includes forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements regarding our expected future
financial position, results of operations, cash flows, financing plans, business
strategy, products and services, competitive positions, growth opportunities,
plans and objectives of management for future operations, as well as statements
that include words such as "anticipate," "if," "believe," "plan," "estimate,"
"expect," "intend," "may," "could," "should," "will," and other similar
expressions are forward-looking statements. All forward-looking statements
involve risks, uncertainties and contingencies, many of which are beyond our
control, which may cause actual results, performance, or achievements to differ
materially from anticipated results, performance, or achievements. Factors that
may cause actual results to differ materially from those in the forward-looking
statements include those set forth in our Form 10-K and other reports filed with
the SEC. We are under no obligation to (and expressly disclaim any such
obligation to) update or alter our forward-looking statements, whether as a
result of new information, future events or otherwise.
Investor
Relations Contact:
Seth
Potter
ICR,
Inc
646-277-1230
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