Destiny Media Technologies Announces Planned Sale of Clipstream Technology to Subsidiary.Business Editors, Hi-Tech Writers VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 20, 2001 Destiny Media Technologies Destiny Media Technologies OTCBB: DSNY is a developer of internet tools for securing and distributing digital media content. History Destiny Software Productions, Inc. , Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DSNY DSNY Department of Sanitation New York DSNY Desi Sounds of New York (band) ), a leader in developing easy-to-use tools and enabling technologies to distribute digital media via the Internet, has arranged for the sale of the Audiomail (TM), Clipstream (TM) and Videoclipstream (TM) java based streaming audio A one-way audio transmission over a data network. It is widely used on the Web as well as company networks to play audio clips and Internet radio. Computers in home networks stream audio (mostly music) to digital media hubs connected to home theaters. and video on demand technologies by its operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Destiny Software Productions Inc., to a subsidiary company, Clipstream Technologies, Inc (CTI (Computer Telephone Integration) Combining data with voice systems in order to enhance telephone services. For example, automatic number identification (ANI) allows a caller's records to be retrieved from the database while the call is routed to the appropriate party. ). Completion of the sale is conditional on CTI obtaining financing of at least $750,000 CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. . The $5.7 million CDN purchase price will be paid with 22,800,000 shares of CTI. After this transaction is completed, Destiny will control 95% of the 24,000,000 issued and outstanding shares of CTI. Destiny will receive royalties aggregating up to $2 million US on a declining scale on CTI's first $30,000,000 US of gross revenues. In addition, pursuant to a product development agreement, Destiny will do ongoing work to warranty and maintain the existing code for twelve months after closing against payment of $62,500 per month CDN. Destiny will also provide the services required to upgrade the three technologies on a "work for hire" basis during this period. Finally, during CTI's start-up period, Destiny will provide the office services and staffing required to maintain ongoing operations. CTI will receive all products, technology, equipment, contracts, marketing material, software, documentation, websites, prepaid expenses and goodwill, including the right to the name "Clipstream" and a perpetual license to Destiny's compression codec (1) (enCOder/DECoder) A hardware circuit that performs analog-to-digital conversion (ADC) and digital-to-analog (DAC) conversion. When analog signals are entered into a computer, cellphone or other device via a microphone or video source such as VHS tape or analog TV, patents. CTI will not receive ownership of the compression patents (which are used in other Destiny products) or any other inventions or products not specifically named in this agreement. CTI intends to make a private offering of up to $1.5 million CDN. at .25 per share. Destiny President, Steve Vestergaard comments on the impact to shareholders. "This transaction allows CTI to properly fund the sales and marketing of the Clipstream (TM) product line while ensuring that Destiny has funds to build out and market our other products which are not included under this agreement, such as RadioDestiny (TM) and MPE MPE abbr. Master of Public Education (TM), and to develop new technologies." David Lawrence, 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. adds, "The market demand and acceptance of Clipstream by brand name customers has been terrific. With the injection of capital into CTI, we will be able to scale our sales force much more quickly than we have in the past. Both groups of shareholders should benefit by this transaction." About Clipstream Technologies, Inc. Clipstream Technologies, Inc. is a Vancouver based privately owned marketing company registered in British Columbia. Clipstream will be a subsidiary of Destiny Software Productions Inc. About Destiny Media Technologies, Inc. Destiny Media Technologies, Inc. (http://www.dsny.com) is a leader in developing easy-to-use tools and enabling technologies to distribute digital media through the Internet. The company's suite of streaming and downloadable products includes: MPE(TM) (http://www.destinympe.com), a complete, secure media distribution system that provides e-commerce and digital rights management directly from within an MP3-compatible multimedia file; Clipstream(TM) (http://www.clipstream.com), a java-based tool which enables web pages, e-mail and banners to stream audio without the use of a player; Video Clipstream(TM) (http://www.videoclipstream.com), a technology for embedding streaming video into a web page or e-mail; and the RadioDestiny Broadcaster(TM) (http://www.radiodestiny.com), which allows a user to webcast live or scripted internet radio from a computer to anyone on the Internet. Established in 1991, the company is headquartered in Vancouver, Canada. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. |
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