Under the terms of the transaction, GlobalMedia will pay $500,000 in cash and
issue up to 1,697,619 shares, valued at upwards of $7 million, to acquire all of OnRadio’s assignable contracts
for Internet services with terrestrial radio stations.
With the completion of the transaction, GlobalMedia
will provide Internet
solutions to more than 260 terrestrial radio stations with an aggregate
audience of more than 50 million persons.
The transaction will
be consummated in a series of closings. The deal is expected to close no
later than 120 days after the initial closing.
“New economy companies must reshape business directives based on the demand of
technology and the most beneficial options for their customers,” said
Rick Ramirez, founder and chief executive officer, OnRadio.
“Our decision to transfer our
assignable web-hosting, content provision and streaming contracts will allow us to refocus our business on providing strategic services and branding tools.”