SOURCE: KIT digital, Inc.

January 27, 2010 08:30 ET

KIT digital Closes $31.3 Million Equity Offering

NEW YORK CITY, NY and PRAGUE, CZECH REPUBLIC--(Marketwire - January 27, 2010) - KIT digital, Inc. (NASDAQ: KITD), a leading global provider of on-demand software solutions for managing and monetizing Internet Protocol (IP)-based video assets, has closed the previously announced sale of 2,980,000 shares of common stock at $10.50 per share for gross proceeds to the company of $31.3 million.

The net proceeds received by the company are expected to be approximately $28,500,000, after deducting the proceeds from underwriting discounts, commissions, legal fees, and deal-related expenses payable by the company.

As previously announced, KIT digital has granted the underwriters of the offering a 30-day option to purchase up to an additional 447,000 shares of common stock to cover over-allotments, the results of which will be reported upon closing of the over-allotment.

The company plans to use a significant portion of the net proceeds of the offering to finance acquisitions of, or investments in, competitive and complementary businesses, as a part of its growth strategy. In addition, the company intends to use a portion of the net proceeds for working capital and general corporate purposes, which may include the purchase of certain outstanding warrants issued in prior private placement financings.

ROTH Capital Partners acted as the lead underwriter for the offering in the United States, with ThinkEquity (a Panmure Gordon Company), Merriman Curhan Ford & Co., and Maxim Group acting as co-managers.

The U.S. offering was made by a final prospectus supplement filed with the SEC pursuant to Rule 424(b)(5) under the Securities Act of 1933, as amended. Copies of the final prospectus may be obtained from the offices of ROTH Capital Partners by e-mail to rothecm@roth.com, by fax to (949) 720-7227, or by mail to 24 Corporate Plaza Drive, Newport Beach, CA, 92660, Attention: Equity Capital Markets.

The shares of common stock issued by the company in the offering are pursuant to a registration statement on Form S-3 (File No. 333-162325) filed by the company on October 5, 2009 with the U.S. Securities and Exchange Commission (SEC). On October 13, 2009, the SEC declared the registration statement effective.

This press release does not constitute an offer to sell or solicitation of an offer to buy any securities. Any such offer may be made only pursuant to the company's final prospectus for the offering or offerings and only in states in which the offering is registered or exempt from registration and by broker-dealers authorized to do so. The securities to be offered by the prospectus are speculative and involve a high degree of risk.

About KIT digital
KIT digital (NASDAQ: KITD) is a global provider of on-demand, Internet Protocol (IP)-based video asset management solutions. KIT VX, the company's end-to-end software platform, enables enterprise clients to acquire, manage and distribute video assets across the three screens of today's world: the personal computer, mobile device, and IPTV-enabled television set. The application of VX ranges from commercial video distribution to internal corporate deployments, including corporate communications, human resources, training, security and surveillance. KIT digital's client base includes more than 600 enterprise customers across 30+ countries, including The Associated Press, Best Buy, Bristol-Myers Squibb, Disney-ABC, General Motors, Google, IMG Worldwide, Intel, McDonald's, News Corp, Telefonica, the U.S. Department of Defense, Verizon, and Vodafone. KIT digital has its headquarters in Prague and maintains principal offices in Cologne, Dubai, London, Melbourne, New York, Stockholm and Toronto. For additional information, please visit www.kitd.com.

KIT digital Forward-Looking Statement
This press release contains certain "forward-looking statements" related to the businesses of KIT digital, Inc., which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our public filings with the U.S. Securities and Exchange Commission. KIT digital is not under obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contact Information

  • KIT digital Media Contact:
    Daniel Goodfellow
    Tel. +1-646-873-3086
    Email Contact

    KIT digital Investor Relations Contact:
    Matt Glover
    Liolios Group, Inc.
    Tel. +1-949-574-3860
    Email Contact