Motricity Announces Relaunch Of Rights Offering
BELLEVUE, Wash., Sept. 13, 2012 (GLOBE NEWSWIRE) -- Motricity, Inc. (Nasdaq:MOTR) today announced that it has resumed its rights offering that initially commenced on July 24, 2012 and was subsequently suspended on August 15, 2012 pending modification of the composition of the units to be offered (the "Rights Offering"). On July 23, 2012, Motricity distributed to holders of its common stock one transferable subscription right to purchase units (the "Original Subscription Rights") for every one share of common stock owned as of that date. Following the distribution of the Original Subscription Rights, Motricity determined that it was advisable and in the company's best interest to modify the composition of the units. In making this determination, Motricity took into account, among other things, stockholder comments and tax considerations. Each subscription right, as modified (the "Rights"), now entitles the holder thereof, subject to certain limitations, to subscribe for a unit, at a subscription price of $0.65 per unit, consisting of 0.02599 shares of 13% Redeemable Series J preferred stock and 0.21987 warrants to purchase a share of common stock at a price per share equal to the greater of (a) $0.65 and (b) 120% of the closing market price of the common stock on the date of issuance, as well as an over-subscription privilege. If the Rights Offering is fully subscribed, Motricity anticipates receiving approximately $28 million in net proceeds. Motricity must use a portion of the proceeds to repay any amounts outstanding under its revolving loan facility from High River Limited Partnership, which could be up to $5 million. No amounts are currently outstanding under the revolving loan facility.
Motricity expects the Rights to begin trading on the NASDAQ Global Select Market on or about September 14, 2012 under the symbol "MOTRR" until October 3, 2012, the expiration date of the Rights Offering, unless the Rights Offering is further extended. Any Rights that are not exercised on or before the expiration date of the rights offering will expire and have no value.
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