Destiny Reaches Agreement in Principle to take Clipstream® Technologies Inc. Public
Vancouver, BC - Destiny Media Technologies, Inc. OTCBB: DSNY ("Destiny") is pleased to announce that an agreement in principle has been reached for a share exchange with AVC Venture Capital Corp., a public company listed on The Canadian Venture Exchange (CDNX: AVW) ("AVC"), which will result in Clipstream Technologies Inc. ("CTI") going public. CTI is a private British Columbia company established earlier this year to facilitate the spin-off and further financing of Destiny's "Clipstream" business division.
Completion of the share exchange is subject to a number of conditions precedent, including AVC completing an equity financing between $750,000 and $1,500,000 (Canadian funds). Upon completion of the transaction and the financing, Destiny will own a majority of the issued and outstanding AVC shares and AVC will be re-named "Clipstream Technologies Inc.".
The respected brokerage firm Raymond James Ltd. has agreed to sponsor both the financing and the listing of CTI pursuant to the share exchange, subject to the usual conditions, including satisfactory completion of its due diligence.
Management believes the proposed share exchange represents an excellent opportunity for increased marketplace recognition of the Clipstream product line and a corresponding enhancement of Destiny shareholder value. Destiny commenced licensing Clipstream products during the second quarter of its financial year ended August 31, 2001, so its financial statements for its financial year ended August 31, 2001 record only nine months of sales. Since Clipstream products are typically licensed for periods, which extend beyond the end of the financial quarter during which the license is granted, persons reviewing Destiny's financial statements will find licensing revenue recorded as "recognized" and "deferred" revenue. Destiny's revenue from sales of Clipstream products falling into these categories during the nine-month period ended August 31, 2001 totaled C$914,000, or approximately C$100,000 per month on average. Primarily as a result of two new licensing arrangements made since Destiny's year end, aggregate new licensing revenues in these two categories between September 1 and November 15, 2001 totaled C$539,972, or more than C$200,000 per month on average.
The Clipstream product line provides Clipstream customers with a leading edge platform for delivery of digital video and audio content over the Internet or via intranet without the need for the recipient to download a player to enjoy rich media audio or video. Using this technology, customers can post audio and video messages on their websites, and can also email audio and video messages. Recipients need simply click their mouse to hear or watch the message.
More information regarding this transaction can be found by accessing the AVC Venture Capital Corp. (symbol AVW) information on the CDNX website or by following this link:
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™ (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™ (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™ (http://www.videoclipstream.com), a technology for embedding streaming video into a web page or e-mail; and the RadioDestiny Broadcaster™ (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.
For more information contact:
|Destiny Media Technologies, Inc.|
President & CEO
Destiny Media Technologies, Inc.
604-609-7736 ext. 222