SOURCE: JumpTV Inc.

October 21, 2008 11:09 ET

Avantalion, LLC and Ms. Nancy Li Acquire Securities of JumpTV Inc.

PLAINVIEW, NY--(Marketwire - October 21, 2008) - AvantaLion LLC ("AvantaLion"), Charles B. Wang and Nancy Li announced today that AvantaLion has acquired common shares and warrants to acquire common shares of JumpTV Inc. ("JumpTV") (TSX: JTV) (AIM: JTV) and Ms. Li has acquired common shares of JumpTV in connection with the closing of the previously announced merger of NeuLion, Inc. ("NeuLion") and JumpTV (the "Transaction").

Under the terms of the Transaction, JumpTV issued 49,577,427 common shares, 1,840,097 contingent shares, which represents approximately the entire issued and outstanding shares of JumpTV, and 5 million warrants exercisable for two years at US $0.64 per share to the security holders of NeuLion, in exchange for their NeuLion securities.

Concurrently with the Transaction, JumpTV issued 10 million units ("Units") on a private placement basis in reliance on the "accredited investor" exemption to AvantaLion, an entity controlled by Mr. Charles Wang for consideration of $1.00 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant exercisable at Cdn $1.25 and one-half of one common share purchase warrant exercisable at Cdn $1.50 (collectively, the "Warrants"), each exercisable for a period of two years (the "Offering").

Pursuant to the Offering, Mr. Wang, through AvantaLion, acquired 10 million Units of JumpTV, which, based on information given to AvantaLion by JumpTV, assuming conversion of all Warrants represents approximately 8.1% of the issued and outstanding common shares of JumpTV (8.8% assuming no conversion of Warrants). In addition, Mr. Wang directly owns 1,099,200 common shares in the capital of JumpTV. Assuming conversion of all Warrants, and further assuming no other convertible securities of JumpTV are converted and no securities are issued from treasury of the Company, immediately after the Transaction Mr. Wang would hold or exercise control and direction over 21,099,200 common shares which would represent approximately 17.1% of the issued and outstanding common shares of JumpTV.

Mr. Wang's spouse, Nancy Li, acquired control and beneficial ownership of 39,160,894 common shares of JumpTV pursuant to the Transaction, which represents approximately 31.7% of the issued and outstanding common shares of JumpTV Inc., assuming conversion of all Warrants (34.5% assuming no conversion of Warrants).

Each of AvantaLion, Mr. Wang and Ms. Li acquired their securities in JumpTV for investment purposes and may in the future take such actions in respect of their respective holdings of securities of JumpTV as it deems appropriate in light of circumstances then existing, including the acquisition or disposition of common shares or other securities of JumpTV. Each of them may from time to time acquire additional common shares in the open market or in privately negotiated transactions, subject to availability of common shares at prices deemed favorable, JumpTV's business or financial condition and other factors and conditions each of them deems appropriate. In addition, each of AvantaLion, Mr. Wang and Ms. Li may formulate other purposes, plans or proposals regarding JumpTV or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors.

The issuance of this news release is not an admission that any entity named in this news release is a joint actor with any other entity named in this news release.

For further information or to receive a copy of the early warning reports issued in connection with this press release, please contact:

Contact Information

  • For AvantaLion, Mr. Wang and Ms. Li, please contact:
    Roy Reichbach
    1600 Old Country Road
    Plainview, New York
    11803
    United States of America
    Phone (516) 501-6724
    Fax: (516) 501-6729