SearchMedia Holdings Limited (“SearchMedia” or the “Company”) (NYSE Amex: IDI)(NYSE Amex: IDI.WS), one of China's leading nationwide multi-platform media companies, today announced that it has appointed Peter W.H. Tan, a current member of the Company’s Board of Directors, as its Chief Executive Officer. Additionally, the Company announced that it has entered into an agreement for a new $3,000,000 Convertible Note (“Note”) with Frost Gamma Investments Trust, an entity affiliated with Dr. Phillip Frost, our largest shareholder and several other investors, including TGC Financial Partners Limited, and entity affiliated with Mr. Tan, and CS Capital USA, LLC, an entity affiliated with Chien Lee, an advisor to the Company. Paul Conway, the Company’s former Chief Executive Officer, will be appointed to the Company’s Board of Directors in the near future and will serve as a consultant to the Company.
The Note has a one year term and borrowings bear interest at a rate of 10% per annum. In addition, the Note is convertible into our common shares at $1.25 per share. We anticipate that proceeds from the Note will be utilized to fund the repurchase of shares at an average price per share of $0.25 that was announced on January 26, 2012 from the partial settlement of the arbitration with predecessor shareholders. Other proceeds from the Note are anticipated to be utilized for new concessions, acquisitions and general working capital purposes.
Robert Fried, Chairman of the Board of Directors of SearchMedia, commented, “We are pleased that Peter has agreed to serve as our Chief Executive Officer. It is a great challenge for a U.S. listed company operating in China to find someone of Peter's talent and experience. He is trustworthy, communicates excellently, understands the needs of U.S. public investors as well as the ground level business needs of a Chinese media company. He is passionate, bold and creative. We consider this a major step toward our goal of being the best run, most trusted company in the China advertising space.