(Applies to: ADCM TSTR)
Simmonds Leads Investor Group In Purchase Of 16 percent Of American
Digital Communications
TORONTO (May 6) BUSINESS WIRE -May 6, 1999--Simmonds Capital Ltd.
(TSE:SMM.) American Digital (OTC BB:ADCM): Mr. John Simmonds, Chief
Executive Officer of American Digital Communications, Inc. ("ADC"),
today announced that he and a group of associates have purchased 4,230,
906 common shares of ADC in a private transaction. The shares were
held by an international financial institution. Mr. Simmonds and his
immediate family personally acquired 665,906 common shares of ADC with
the rest being taken up by other members of the group, including close
business associates and investors familiar with the company.
Mr. Simmonds is also the Chief Executive Officer of Simmonds Capital
Limited, a diversified management company based in Toronto, Canada.
Simmonds Capital has a 16 percent beneficial interest in ADC including
3.3 million common shares, $1 million preferred shares which are
convertible at $1.00 per share, and warrants to purchase 500,000 common
shares at $2.00 per share. In addition, Simmonds Capital has the right
to receive up to $1.5 million in an earn out from the prior sale of the
TrackPower business to ADC. The majority of the ADC common shares held
by Simmonds Capital are subject to a prior option grant.
Through TrackPower International Inc., ADC delivers high quality live
horseracing video to subscribers throughout the United States,
including Alaska, Hawaii, and Puerto Rico. ADC uses the Skynet Direct
Platform to broadcast the TrackPower service as a niche-programming
package on EchoStar Communications Corporation's SkyVista(TM) DTH
television service. Skynet Direct is Loral Skynet's transmission and
distribution service that offers programmers a combination of its
Telstar fleet space segment with compression, encoding, uplinking,
format conversion and multiplexing from EchoStar's existing facilities
in Cheyenne, Wyoming. EchoStar also provides order processing,
receiver authorization, and billing from its customer service center in
Denver, Co.
-0- KS/se*
CONTACT: American Digital Communications, Inc.
Graham Simmonds, 905/839-1430
KEYWORD: INTERNATIONAL CANADA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
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