Hey, GMST's lawyers finally win one; get all they wanted. Clipity clop, TVG even gets 725K for its legal fees.
WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Feb. 23, 2004--Youbet.com, Inc. (Nasdaq: UBET - News) and TVG Network today agreed to settle their disputes over certain Youbet proxy proposals and TVG's warrant to purchase Youbet common stock. As part of the settlement, Youbet will withdraw its staggered board and supermajority voting proxy proposals and TVG will drop all pending litigation and the related arbitration.
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The settlement also includes terms intended to relieve near-term uncertainty with respect to the TVG warrant, including a standstill provision that prohibits TVG from exercising or transferring its warrant in Youbet until April 1, 2004. The TVG warrant expires by its terms on May 18, 2004.
During the standstill, Youbet and TVG will engage in good faith negotiations regarding their strategic relationship moving forward. Also, if TVG gives notice before the expiration of the standstill that it will not exercise or transfer its warrant, Youbet has agreed to give TVG one million new shares of Youbet common stock.
The companies also agreed to recognize the dilutive effects of several specific securities transactions and to reflect the dilution in a reduction of the exercise price of the warrant to $36.5 million. As of December 31, 2003 this equates to $1.69 per share assuming the issuance of 21.6 million shares based on the 28.4 million shares outstanding at year-end.
Finally, the settlement calls for Youbet to reimburse TVG for the legal expenses it incurred during the dispute up to $725,000.
Youbet.com is the largest Internet provider of thoroughbred, quarter horse and harness racing content in the United States. Members have the ability to watch and, in most states, wager on nearly all major domestic horse racing content via Youbet's exclusive closed-loop network. Youbet members enjoy features that include commingled track pools, live audio/video, up-to-the-minute track information, real-time wagering information, phone wagering and value-added handicapping products. Youbet.com is an official online wagering platform of Churchill Downs Incorporated and the Kentucky Derby. |
