SOUTH GLASTONBURY, CT--(Marketwired - Mar 31, 2014) - CÜR Media, Inc. (OTCBB: CURM) (the "Company" or CÜR Media"), a Delaware corporation, today announced that it has completed the final closing of its private placement offering, securing $9.6 million in total equity financing. CÜR Media initially set out to raise up to $7.0 million as part of its January 29, 2014 announced alternative public offering ("APO"). Shares of the Company's common stock are currently quoted on the OTC Markets under the symbol "CURM." The Company also announced that it has appointed Gordon C. Mackenzie as Chief Technology Officer.
"We are pleased at the interest we have received from investors in this APO financing." said Tom Brophy, Founder and CEO, of CÜR Media. "We originally targeted a financing in the range of $4-$7 million. The demand from qualified individual and institutional investors exceeded the amount of the initial targeted offering by 37%. We now have a large and committed investor base and plan to add a new and exciting model to serve an unmet need in the streaming music industry."
The Company is developing CÜR Music (www.curmusic.com), a hybrid music streaming service for mobile devices and the web that blends the best of internet radio services like Pandora (NASDAQ: P) with on-demand services like Spotify. The Company plans to launch its web and mobile applications in Q4 of 2014.
"The fact that we were oversubscribed in this offering supports the market's enthusiasm for a new and different music streaming model compared to services like Spotify and Pandora," said Mr. Brophy. "Revenue from streaming and subscription music services climbed 51% in 2013, which demonstrates clear market demand for these offerings. However even amidst these gains, the incumbents are challenged to continue innovating and demonstrating upside. We see significant opportunity to pick up where music innovation has left off and deliver new offerings that appeal to a broader set of music consumers."
The Company raised a total of $9,630,000 in gross proceeds through the sale of 9,630,000 units at a price of $1.00 per share. Each unit includes one share of the Company's common stock and a warrant to purchase one share of the Company's common stock at an exercise price of $2.00 per share for a five-year period. After giving effect to the final closing, there are approximately 24.5 million shares of Company common stock outstanding.
Intuitive Venture Partners, LLC was the Company's exclusive financial advisor, Gottbetter Capital Markets, LLC was the exclusive placement agent for the offering, and EDI Financial, Inc. was a sub-agent. Further details on the APO financing can be found in the Company's 8-K filing on February 11, 2014.
The Company began testing its service in early 2012 as "Raditaz", a DMCA compliant internet radio product developed on iPhone and Android platforms. The Company is based in Connecticut, and is led by digital media entrepreneur Tom Brophy and entertainment and music industry veterans John A. Lack (creator of MTV, Nickelodeon, ESPN2 and The Movie Channel) and Bob Jamieson (former Chairman/CEO of RCA Records).
For more information, please visit www.curmusic.com.
About CÜR Media
CÜR Media is developing CÜR Music, a hybrid music streaming service, for mobile devices and the web that intersects internet radio services like Pandora and on-demand services like Spotify. The Company is planning to launch its web and mobile applications in the 4th quarter of this year.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to the development of commercially viable streaming music product, (ii) a projection of income (including income/loss), earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii) the Company's future financial performance and (iv) the assumptions underlying or relating to any statement described in points (i), (ii) or (iii) above. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the Company's inability to obtain adequate financing, the length of time associated with development of mobile applications and related insufficient cash flows and resulting illiquidity, the Company's inability to expand the Company's business, lack of product diversification, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and the Company's failure to implement the Company's business plans or strategies.