PORT ST. LUCIE, Fla.--()--Digital Domain Media Group (NYSE: DDMG) entered into a purchase agreement, as of June 7, 2012, to sell 1.5 million shares of the company’s common stock at $7.00 per share and warrants to purchase an additional 600,000 shares of common stock at an exercise price of $8.05 per share in a private placement to a select group of institutional investors. The transaction was consummated on June 8, 2012, and gross proceeds from the offering totaled $10.5 million. The company will use the proceeds primarily for general corporate purposes.
“We are pleased to have secured additional equity funding from substantially the same group of investors that recently enabled the company to refinance its senior debt. We believe this current common stock financing provides an even deeper alignment between our leading institutional investors and our total shareholder base”
“We are pleased to have secured additional equity funding from substantially the same group of investors that recently enabled the company to refinance its senior debt. We believe this current common stock financing provides an even deeper alignment between our leading institutional investors and our total shareholder base,” said John Textor, chairman and CEO of Digital Domain Media Group.
“This additional funding will enable us to move ahead rapidly with the great opportunities presented by our new virtual performer business, which we launched with the creation of a virtual Tupac Shakur at the Coachella Music Festival and that we are continuing with our recently announced production project with CORE Media Group, the home of Elvis Presley Enterprises and American Idol.”
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The securities were offered only to accredited investors.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
About Digital Domain Media Group
Digital Domain Media Group (DDMG: NYSE) leverages its expertise in digital visual effects (VFX) and computer-generated (CG) animation across a group of interrelated businesses. At its foundation is Digital Domain Productions (DDPI), an award-winning digital production company founded in 1993. This leading provider of visuals has contributed to more than 90 major motion pictures, including Titanic, the Transformers series, Real Steel and TRON: Legacy, as well hundreds of commercials. DDPI also converts two-dimensional (2D) imagery to three-dimensional (3D) imagery and holds key patents in this area. Mothership, a DDPI subsidiary, focuses on creating advertising, entertainment and branded content from concept to completion, across multiple media platforms. DDMG, its work and its employees have been recognized with numerous awards, including seven from the Academy of Motion Picture Arts and Sciences. The company is building on its success in VFX to participate as a co-producer in major studio productions and is currently in production on the upcoming live-action sci-fi feature film Ender’s Game. DDMG is also applying its CG expertise to produce original, family-friendly animated feature films at its subsidiary Tradition Studios. The first movie, The Legend of Tembo, is in pre-production and two more features are in development. The company’s education subsidiary, the Digital Domain Institute, sets a new standard in digital media education through a pioneering public-private partnership with The Florida State University College of Motion Picture Arts. DDMG is expanding its worldwide footprint of the highest quality visual effects and animation at the lowest possible cost through global partnerships in India and China. The company has studios in Los Angeles, San Francisco, Florida, Vancouver, Mumbai and London, and is currently establishing a studio in Beijing. http://www.ddmg.co