SOURCE: NeuLion, Inc.

NeuLion, Inc.

September 27, 2010 17:01 ET

NeuLion Provides Results of Voting at Its Special Meeting of Shareholders

PLAINVIEW, NY--(Marketwire - September 27, 2010) -  NeuLion, Inc. (TSX: NLN) (the "Company"), an end-to-end IPTV service provider of live and on-demand sports, international and variety programming over the Internet, announced today the results of the voting at its special meeting of shareholders held today. The voting results are being filed with the securities regulatory authorities in Canada and the United States.

Matter Voted On   Outcome
     
     
To authorize and approve the acquisition of all of the issued and outstanding shares of TransVideo International Ltd. ("TransVideo") in exchange for 22,000,802 common shares (the "Common Shares") of the Company   Approved
     
To approve the amendment of the articles of the Company in order to create a new class of shares, the Class 3 Preference Shares (the "Class 3 Preference Shares") and to revise the terms of the Common Shares   Approved
     
To authorize and approve the issuance of approximately 16,666,667 Class 3 Preference Shares to JK&B Capital V, L.P., JK&B Capital V Special Opportunities Fund, L.P. and Gabriel A. Battista, at a subscription price of CAD$0.60 per Class 3 Preference Share   Approved

The Company also announced that the private placement of Class 3 Preference Shares is expected to close on or about September 29, 2010. The Company expects that approximately 17,099,278 Class 3 Preference Shares at a price of CAD$0.60 per share will be issued to JK&B Capital V, L.P., JK&B Capital V Special Opportunities Fund, L.P. and Mr. Battista for approximate gross proceeds of US$10 million. The Class 3 Preference Shares are priced at CDN$0.60 per share. The Class 3 Preference Shares carry an eight percent dividend over five years and bear certain rights, preferences, privileges and restrictions. The proceeds of the private placement will be used for general working capital purposes.

The Company also announced that the acquisition of all of the issued and outstanding shares of TransVideo, a manufacturer of set top boxes utilized by the Company, in exchange for 22,000,802 Common Shares is expected to close on or about October 1, 2010. TransVideo shareholders will own approximately 15% of the Company, on a fully diluted basis, upon the consummation of the transaction. TransVideo's passive investment in KyLinTV, Inc., an IPTV company that is controlled by Charles B. Wang, the Chairman of the Board of Directors of the Company, will not be transferred as part of the transaction.

About NeuLion

Based in Plainview, NY, Sanford, Florida and Toronto, Ontario, NeuLion (TSX: NLN) works with content partners to develop end-to-end solutions for multimedia IPTV services. The NeuLion IPTV Platform encodes, delivers, stores and manages an unlimited range of multimedia content and the Operational Support System (OSS) maintains all billing and customer support services. Content partners are responsible for content aggregation and the sales and marketing for the individual IPTV service. The Company ranks as a world leader in customer/partner relationships with sports, international and specialty television content partners including, in sports, the NHL, the NFL, MLS, NCAA Division I schools and conferences and, in respect to international television aggregators and networks, KyLinTV (Chinese), ABS-CBN (Filipino), Talfazat and Talfazat-ART (Arabic), TV-Desi (South Asian) and Sky Angel (Christian). Customer/partner content can be viewed by way of the Internet on PCs and mobile devices and on the television through the Company's IPTV set top box.

Forward-Looking Statements

Certain statements herein are forward-looking statements and represent the Company's current intentions in respect of future activities. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. Forward-looking statements can be identified by the use of the words "will," "expect," "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: the inability of TransVideo and the Company to consummate the transaction on the proposed terms or at all; regulatory approval of the private placement and the acquisition of TransVideo; the closing of the proposed private placement and of the proposed acquisition of TransVideo; the companies' inability to integrate their businesses or to realize expected synergies, if the acquisition of TransVideo is consummated; general economic and market segment conditions; competitor activity; product capability and acceptance rates; technology changes; and international risk and currency exchange. A more detailed assessment of risks that could cause actual results to materially differ from current expectations is contained in the Company's most recent annual MD&A filed on www.sedar.com as well as in the "Risk Factors" section of the Company's most recent annual report on Form 10-K filed on www.sedar.com and available on www.sec.gov.

Contact Information

  • Press Contact:
    Jennifer Powalski
    Corporate Communications
    +1-516-622-8334
    Email Contact

    Investor Relations Contact:
    G. Scott Paterson
    Vice Chairman
    +1-416-368-6464
    Email Contact