CenterSpan Named Successful Bidder in Scour Auction; Acquisition Catapults CenterSpan to Forefront of Legal Peer-to-Peer Digital Distribution.Business Editors, Technology Writers HILLSBORO, Ore.--(BUSINESS WIRE)--Dec. 13, 2000 CenterSpan Communications (Nasdaq:CSCC CSCC Calgary Sports Car Club (Alberta, Canada) CSCC Clemson Sports Car Club CSCC Columbus State Community College (Ohio) CSCC Classic Sports Car Club (UK) ) announced today that it was named the successful bidder of the assets of Scour scour, scours 1. the chemical and physical cleaning of fleece wool. 2. diarrhea. dietetic scour see dietary diarrhea. peat scour see secondary nutritional copper deficiency. , Inc. CenterSpan's offer of $9,000,000 in cash and common stock was accepted as the best and highest bid in the auction proceeding before Judge March of the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . The specific terms require $5,500,000 in cash and $3,500,000 in newly issued CenterSpan common stock, which represents 333,333 shares at a price of $10.50 per share, which was the closing price of CenterSpan's stock on the NASDAQ exchange on Tuesday December 12, 2000. The acquisition will be accounted for as a purchase transaction and is expected to close by next Tuesday December 19, 2000. Scour currently operates one of the most widely visited digital entertainment portals on the web. Scour facilitates the search and exchange of digital audio, video and image files. Its peer-to-peer search and file sharing Copying files from one computer to another. See peer-to-peer network, file sharing protocol and file and printer sharing. application, Scour Exchange, has close to 4.5 million registered users. Scour Exchange is similar to Napster, but broader in scope. Scour Exchange was shut down as a result of Scour filing for protection from its creditors pursuant to Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
CenterSpan's purchase of the assets of Scour under the jurisdiction of the U.S. Bankruptcy Court enables the company to take title to the Scour assets free and clear of any and all liabilities. CenterSpan plans to re-launch the Scour Exchange in the first quarter of 2001 as part of the company's secure and legal digital distribution channel, code named C-star. C-star integrates CenterSpan's next generation peer-to-peer technology with digital rights management support to provide content owners with the ability to track and account for their content within the channel. "As we stated at the beginning of this process, Scour represents a significant opportunity for us to accelerate public visibility of C-star and create critical mass for the secure and legal distribution of digital content for fee over the Internet," stated Frank G. Hausmann, CenterSpan's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In addition, the $10 million in cash we will receive as a result of the recently announced private equity investment will give us more than adequate operating and opportunistic cash to execute our strategy." About CenterSpan CenterSpan Communications Corp. is a developer and marketer of peer-to-peer Internet communication and collaboration solutions. The company is developing a next generation peer-to-peer digital distribution channel enabling members to publish, search and purchase digital content, such as music and video files, in a secure and legal environment. CenterSpan is an Intel Capital portfolio company. Visit www.centerspan.com to learn more. This press release includes 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. . Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The Company's peer-to-peer Internet communications and collaboration initiative is a new business in a rapidly evolving market. Specific statements regarding the acquisition of the assets of Scour, Inc, the expected closing of new equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , the timely release of new products, number of registered users, new business opportunities, new revenue model and potential earnings leverage are forward-looking statements. Investors are encouraged to review the Company's filings with the Securities and Exchange Commission, including the Company's 1999 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , for a further description of the risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc forward-looking statements made by the Company, as well as to other aspects of the Company's business. |
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