Destiny Closes $2.16 Million Private Placement
Vancouver, BC – February 26, 2007 – Destiny Media Technologies (DSNY OTCBB) is pleased to announce that it has completed a sale of 5,400,000 units at $.40 per unit for proceeds of $2,160,000 USD. In addition to the participation of new and existing accredited investors, the private placement investment was led by three new institutional investors. A unit consists of a share and a warrant exercisable at a strike price of $.50 per share. Due to strong investor interest, the original placement maximum of $2 million was oversubscribed.
The common shares are subject to hold periods under Canadian and US securities laws. The company has agreed to file a registration statement to cover the resale of the shares sold and the shares issuable upon exercise of the warrants by the investors in the United States.
"We are thrilled with the reception we received from investors, particularly our access to the institutional market," said CEO Steve Vestergaard. "This new capital gives us the confidence to exploit our current opportunities in the digital media space with our MPE, Clipstream™ and Radio Destiny™ technologies and to expand these revenue models."
The MPE™ suite of products includes online music store software and infrastructure, internet jukebox software and a system for distributing music securely through the internet. The Promo Only MPE system is in use by 773 labels including UMG, EMI, Sony BMG and Warner Music Group. Over 34,000 songs have been sent to radio and other trusted recipients since launch representing 36,500,000 transactions. Usage has been growing with 4.2 million of those transactions occurring in January, 2007.
Destiny is a world leader in developing and marketing software tools for distributing and streaming digital media content. The purpose of the financing is to expand sales and marketing of the MPE™, Clipstream™ and Radio Destiny™ product lines.
Clipstream™ is a technology for embedding streaming audio and video clips into web pages. Because it is written in Java, it works natively on most operating systems and browsers 98% of the time. Content owners use their existing websites and don't need streaming server hardware and software and site visitors experience the content without downloading or installing player software.
Radio Destiny™ is software that enables any PC user to start a live internet radio station. Stations are automatically added and removed to a real time directory, so they can be easily found. An update to this software, featuring high fidelity audio and a recurring business model tied to a social network is expected to launch next quarter.
Bryant Park Capital acted as exclusive agent for the offering. A commission of up to 8% cash and 8% warrants is due on closing. Bryant Park Capital has also been engaged as a business consultant to the company since September 2006.
About Bryant Park Capital
BRYANT PARK CAPITAL, INC. (http://www.bryantparkcapital.com) is an investment bank providing M&A and corporate finance advisory services to public and private companies typically with revenues between $20 million and $500 million. BPC is comprised of seasoned M&A and corporate finance professionals from top tier investment banks and senior executives of operating companies. BPC excels in providing M&A advisory and capital raising services for complex deal structures as well as providing high level access to top tier private equity, hedge fund and venture capital firms.
About Destiny Media Technologies
Destiny Media Technologies, Inc. (www.dsny.com) (DSNY.OB) is a leader in developing easy-to-use tools for distributing media through the internet. The company's suite of streaming and downloadable products includes: Clipstream ™, Destiny Media Player ™, Radio Destiny™, and MPE ™. Established in 1991, the company is headquartered in Vancouver, Canada.
"Safe Harbor" statement under the Private Securities Litigation Reform Act 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.