Scott Paterson, the former head of Toronto based Yorkton Securities Inc., has taken control of an on-line television company that hopes to go public later this year on the London AIM market.
Yorkton Securities Inc. promoted various tech startups during the early 2000's Internet frenzy. The firm was hit with conflict of interest allegations in 2001 (the firm has since been re-named Orion Securities).
Paterson departed Yorkton in 2001 and was paid $1-million in order settle allegations with the Ontario Securities Commission. He was voluntarily suspended from the industry for two years.
"JumpTV", reportedly broadcasts more than 100 foreign television channels over the Internet. The President of the Company is Kaleil Tuzman, a former investment banker from Goldman Sachs, who gained notariety as the man behind "govWorks", a failed U.S. Internet company that was the subject of the documentary "Startup.com: The rise and fall of the American Dream." The movie documented Mr. Tuzman's tribulations, as the company spent $60-million (U.S.) of startup capital.
JumpTV reportedly has 12,000 monthly subscribers, mostly expatriates, who pay to watch broadcasts from their home countries. The Company aspires to be the world's leading broadcaster of ethnic television channels internationally. In 2005, JumpTV reported a loss of more than $41,000 on revenue of $710,000. The Company has raised $22-million (U.S.) since Mr. Paterson became CEO of the company.
Potential investors have been told JumpTV expects to grow to more than 1.5 million subscribers over the next three years, resulting in projected revenue of $170-million. The Company started broadcasting over the Internet in 2002, but has begun promoting itself in recent months.
JumpTV reportedly has 22.2 million shares, fully diluted, including an employee and director options of approximately 1.9 million shares, with an average exercise price of $1.73. Additional employee options of 1.2 million shares can be exercised at $2.50 each.
In 2000, Mr. Paterson and Yorkton predicted shares of one of their promoted companies, "Book4Golf.com" would reach over $100 (Canadian). The stock got as high as $24, but then collapsed into penny range.
(Source: Toronto Globe and Mail, February 20, 2006)
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