AdStar and Tribune Company Sign Letter of Intent for $1.5 Million in Additional Funding.Business Editors MARINA DEL REY Del Rey may refer to:
AdStar, Inc. (Nasdaq: ADST ADST Association for Diplomatic Studies and Training (Arlington, Virginia) ADST Advanced Distributed Simulation Technology ADST Alexandria University Desalination Studies and Technology Center (Egypt) , ADSTW), a leading application service provider for the classified advertising industry, today announced that it has signed a letter of intent with Tribune Company The Tribune Company (NYSE: TRB) is a large American multimedia corporation based in Chicago, Illinois. It is the nation's second-largest newspaper publisher, responsible for the Chicago Tribune, Los Angeles Times, Newsday, Hartford Courant (NYSE NYSE See: New York Stock Exchange : TRB TRB Transportation Research Board TRB Technical Review Board TRB Teacher Registration Board TRB Test Review Board TRB Total Relationship Balance TRB Tap-Rack-Bang (shooting procedure) TRB Theodore Roosevelt Building ) for an additional investment by Tribune tribune, in ancient Rome, one of various officers. The history of the office of tribune is closely associated with the struggle of the plebs against the patrician class to achieve a more equitable position in the state. From c.508 B.C. of $1.5 million. This agreement follows a strategic alliance the companies made in March that included $1.8 million in funding from Tribune Company. As part of the proposed transaction, AdStar will develop additional features that expand the capabilities of AdStar's generic service and the "FlexAd" service that was launched earlier this year for Tribune and the CareerBuilder Network, which is owned and operated by Tribune Company, Knight-Ridder, Inc. and Gannett Co., Inc. "The proposed new investment by Tribune is further recognition of the importance of AdStar's technology in the growth of dual media ad insertions -- the ability to simultaneously create, schedule, purchase and run ads in both online and print media," said Leslie Bernhard, president of AdStar. "With the proposed proceeds, AdStar can accelerate its progress on enhancing and expanding its ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). service, which will improve the performance of the FlexAd service currently provided to Tribune." AdStar's FlexAd service enables newspapers to offer integrated print and online job listings. FlexAds streamline the help-wanted ad buying process. The service enables ad agencies, employers and consumers to create, schedule and purchase ads to run in both the help-wanted sections of CareerBuilder-branded participating newspapers and on the CareerBuilder.com Web site. The product consists of a newly formatted print ad that includes a Web ID code and online job posting with a full job description on the CareerBuilder section of an online newspaper. FlexAds are currently available in four Tribune newspapers and are expected to be available in all Tribune markets by Spring 2003. The proposed investment will be in the form of an initial purchase by Tribune of $900,000 of new Series B-1 preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and a subsequent purchase, subject to the conditions described below, of $600,000 of new Series B-2 preferred stock. The purchase price for each share of the Series B-1 and Series B-2 preferred stock will be the lower of $0.75 or the fair market value of the AdStar common stock at the time of the respective closing. The subsequent purchase by Tribune is subject to AdStar stockholder approval and the fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. by AdStar of certain obligations under its agreement with Tribune. If those conditions are not satisfied, Tribune will have the right to sell its shares of Series B-1 preferred stock back to AdStar. The transaction is subject to customary corporate approvals, and also conditioned upon AdStar and Tribune agreeing to and signing definitive agreements and satisfying the various customary closing conditions that may be contained in those agreements. About AdStar, Inc. AdStar (Nasdaq: ADST, ADSTW), based in Marina del Rey, Calif., serves as an application service provider (ASP) for the $20+ billion classified advertising industry. AdStar turns publishers' Web sites into full-service classified ad sales channels for their print and online classified ad sections. Since 1986, AdStar has set the standard for remote ad entry software by giving advertisers the ability to place ads electronically with many of the largest newspapers in the United States Newspapers have declined in their influence and penetration into American households over the years. The U.S. does not have a national paper per se, although the influential dailies the New York Times and the Wall Street Journal are sold in most U.S. cities. . Today, AdStar's infrastructure, through its private label model, powers classified ad sales for more than 20 of the largest newspapers in the country and the Newspaper Association of America's bonafideclassifieds.com, where ads can be placed in more than 120 newspapers. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements concerning the business and products of the Company and a proposed future definitive agreement. Actual results may differ from those projected or implied by such forward-looking statements depending on a number of risks and uncertainties, including, but not limited to the failure to execute the proposed definitive agreement and the development and market acceptance of the service. Other risks inherent in the business of the Company are described in Securities and Exchange Commission filings, including the Company prospectus on Form SB-2. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion