Sunhawk.com to Liquidate Digital Sheet Music Business.
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After announcing a corporate restructuring aimed at creating a more efficient and effective organization last month, Marlin J. Eller, chief executive officer of Sunhawk.com Corporation, has agreed to acquire the assets of the company's digital sheet music business and resign his position with Sunhawk.
"Marlin led the effort to create Sunhawk in 1992, played the leading role in our initial public offering, and built the foundation for the company's endeavors in digital rights and asset management and digital publishing," says David Powell, President of Sunhawk's Copyright Control Services subsidiary. "This spin-off transaction benefits both Sunhawk and the digital sheet music division of the company that Eller is purchasing, and the immediate beneficiaries are our shareholders."
Following this step, the remainder of the Seattle-based Internet digital asset management and digital publishing company would acquire A.N.N. Automation, Inc., a privately-held, Southern California based company that produces and deploys digital video asset and resource management systems, currently for the news broadcast industry.
"Sunhawk will now have access to more resources with which to focus the company's efforts on broader areas and larger customer markets of Digital Asset Management," says Powell.
The proposed transaction calls for Sunhawk to acquire all the outstanding stock of A.N.N. in exchange for 36% of Sunhawk's outstanding stock on a post-transaction basis, and up to an additional 10% of Sunhawk's stock if certain revenue targets are met.
The transaction is subject to the completion of the sale of Sunhawk's digital sheet music business to and a definitive acquisition agreement, as well as board and shareholder approval.
Upon closing of the transaction, it is intended that the executive team of A.N.N. currently composed of Chairman and CEO David Griffith, CFO Mathew Wheeler, CTO Mark Gibbs and Executive VP of sales and marketing Gail Jordan will assume leadership of the newly merged company.
"The contemplated merger appears to be a textbook strategy for enhancing shareholder value in the short term," said Griffith. "After spinning off the sheet music business and its attendant costs, our combined company will have complementary international current and target customers, synergistic technologies and a great historical platform to be a major player in Digital Asset Management solutions."