Remark Media Creates China’s First Boxing Channel – Launches With Distributorship of the Clash in Cotai
Remark Media announced last night that it has been named the official Digital Distributor of the Clash in Cotai boxing event headlined by Manny Pacquiao vs. Brandon Rios. Additionally, Remark Media also today announced that it is creating China’s first Boxing Channel, which will be distributed on PPTV’s platform. The Boxing Channel will feature live boxing events, documentaries, feature films, interviews, analysis and highlights from the boxing world. The Clash in Cotai is the Boxing Channel’s inaugural event. The Boxing Channel, as with PPTV’s other leading sports channels which exclusively distribute the English Premier League and the NFL, will feature a main lobby allowing viewers to browse and view on-demand content, as well as watch live events as they are broadcast. Remark Media is marketing the Boxing Channel and its live events broadcast on the channel via campaigns on Chinese social media Weibo and Weixin, incorporating celebrities, sports influencers, and cultural opinion leaders. The Boxing Channel is online at http://leader.pptv.com/boxing/.
The entire press release can be read by clicking here.
Remark is rapidly morphing into a significant player in several verticals and we believe this deal is an eye-opening example of their potential to find new and exciting ways to create value for shareholders. We should also note that any concerns about near term cash levels have been alleviated, as the 10Q filed by the company late last week included the following:
On November 12, 2013, Digipac, LLC notified the Company that it wished to convert the entire principal amounts of both the November 2012 Note and the April 2013 Note, and all accrued and unpaid interest thereon, into shares of the Company’s common stock, effective as of the same day. This conversion resulted in the issuance of 3,556,672 shares of the Company’s common stock to Digipac, LLC, and the extinguishing of a total of $5.8 million in debt issued by the Company and the approximately $281,236 in accrued and unpaid interest.
On November 14, 2013, the Company’s total cash and cash equivalents balance was approximately $2.7 million. On November 13, 2013, the Company entered into a $2.5 million Term Loan Agreement, at 6.67% annual interest rate for the first year and 8.67% for the second year, with a lender controlled by and in part owned by Mr. Kai-Shing Tao, the Company’s Chairman and Chief Executive Officer. The Term Loan Agreement is secured pursuant to the Term Loan Agreement detailed below, as amended by Amendment No. 2 to that Term Loan Agreement, dated April 2, 2013. The principal and accrued interest under the Term Loan Agreement is convertible into Common Stock of the Company at the rate of $3.75 per share, which was the closing price of the Company’s common stock on the date of entrance into the agreement. The balance is due November 2015.
Thus, the two prior convertible financings led by Remark CEO Kai-Shing Tao have now been converted into stock. While this conversion is dilutive to shareholders in that it increases the number of shares outstanding, it has zero impact on the public float and serves to further align shareholders interests with the Remark’s management. The new financing should have the same impact and management projects that this round should cover the company’s cash needs until the beginning of Q3 2014, a time frame which could allow for a liquidity event related to the company’s Sharecare stake. We believe these events will cause many new investors to take a look at the Remark story and considerable value being created for shareholders by Remark Media’s management.