Source Media Proposes to Extend Warrant Expiration Date
DALLAS, May 25 /PRNewswire/ -- Source Media, Inc. (Nasdaq: SRCM) today announced that it has filed preliminary consent solicitation materials with the SEC in connection with a proposed offer to extend the exercise period of the Company's common stock purchase warrants to December 22, 2000. These warrants are scheduled to expire on June 23, 2000. The exercise price for the warrants will not change.
As a condition of the extension, the Company will require the warrantholders to approve a modification to the terms and conditions that govern the circumstances under which the Company may call the warrants for redemption. Under the modification, the Company may exercise its right to redeem the warrants if the closing price of its common stock is $13.00 per share for more than ten consecutive trading days. The warrants currently provide that the Company may exercise its right to redeem such warrants if the closing price of its common stock is $20.00 per share for more than 20 consecutive trading days.
Each warrantholder choosing to accept the modification will be required to sign and return to the Company a written consent to the modification. Each consent will apply only to the warrantholder returning the consent, regardless of whether any or all of the other warrantholders consent to the modification. The Company expects to mail consent solicitation materials in the week of June 5, 2000. To accept the modification and the extension of the expiration date, warrantholders will have to return their signed consents by the close of business on June 23, 2000.
Source Media is a leader in the development and introduction of localized new media content, advertising and technology. Source Media's IT Network provides new media content and advertising services via newspapers and Yellow Pages directories to over 150 million households and businesses nationwide. Our Interactive TV business, is conducted through SourceSuite LLC, our 50/50 joint venture with Insight Interactive which we manage. SourceSuite is developing and deploying our interactive program guide SourceGuide(TM) and our interactive programming service, LocalSource(TM), along with other interactive TV business.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements that are not historical facts, including statements about confidence and strategies and plans and expectations about new and existing products, services, technologies and opportunities, industry growth, demand, and acceptance of new and existing products, and returns on investments in products and markets are forward-looking statements that involve risks and uncertainties that could significantly impact the companies. These statements are not guarantees of future performance, and actual results could differ materially from current expectations.
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SOURCE: Source Media, Inc.
CONTACT: Paul Tigh of Source Media, Inc., 972-701-5556 |
