2008 is shaping up to be an extremely eventful year for Onstream Media. On Tuesday, the company released a cover-all press statement that included a listing-status report, modifications to a recent acquisition agreement, and details surrounding recent product upgrades.
On October 1st, a letter was received from NASDAQ stating that Onstream’s common stock is subject to de-listing as a result of the company’s failure to hold a required annual shareholder meeting by the end of its fiscal year (September 30th). A hearing has been set for November 20, 2008 with the NASDAQ Listing Qualifications Panel to address the issue. On an added note, in order to maintain NASDAQ Capital Market listing eligibility, Onstream common stock must close at $1.00 per share bid or more for at least ten consecutive business days before December 30th.
Playing into the reason why Onstream pushed back its annual shareholder conference were changes made to a definitive September 15th merger agreement with Narrowstep, Inc. According to the amended agreement, the total number of Onstream common shares to be initially issued is to be reduced from 9,100,000 to 8,100,000. This, and other small changes, warranted a re-assessment of the estimated purchase price; previously $11.8 million, now figured to be $5.1 million.
In addition to these developments, this quarter will mark the launch of Onstream’s upgraded DMSP (Digital Media Services Platform) Streaming Publisher. The software provides media companies and other content developers with cutting-edge publishing resources. Changes made to the previous system include advanced online video advertising capabilities; an integral aspect of operation in a market that is estimated to be worth over $3 billion by the year 2012.
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