DG Systems Gets $12.9 Million Capital Infusion
Advertising carrier Digital Generation Systems Inc. said it completed a private placement totaling $12.9 million for 4.6 million shares of the company's common stock.
Advertising carrier Digital Generation Systems Inc. said it completed a private placement totaling $12.9 million for 4.6 million shares of the company's common stock.
Advertising carrier Digital Generation Systems Inc. said it completed a private placement totaling $12.9 million for 4.6 million shares of the company’s common stock.
In another action, the company converted all of its outstanding preferred stock to common stock at a price of $2.80 per share. These actions bring the total outstanding shares of common stock, including the shares issued for the private placement, to approximately 22 million. The company also said it received affirmation of its continued listing on the NASDAQ exchange.
Digital Generation developed and continues to operate both a nationwide, value added digital network and an Internet product linking hundreds of advertisers and advertising agencies with more than 6,600 radio and television stations across the U.S. The company’s network operations center delivers audio, video, image and data content, which facilitates transactions among advertising industry participants.
The company said it took advantage of significant demand from its current institutional holders including Dawson-Samberg Capital Management, which invested $4.3 million, Technology Crossover Ventures, Integral Partners, London Merchant Securities, and Glynn Capital Management. In total, existing institutional investors contributed $8.6 million of the $12.9 million private placement.
New significant investors in the company included Victory Ventures and broadcast industry veteran Scott Ginsburg, former president and CEO of Chancellor Media and former chairman and CEO of Evergreen Media.
“We are extremely pleased with the outcome of this transaction,” said Hank Donaldson, president & CEO of DG Systems. “This capital infusion and the investors involved represent both a significant event in the company’s history and a strong endorsement from major current shareholders and individuals respected in the industry. It further validates that DG Systems’ strategy and technology is on the right track.”
“Having recently accomplished another milestone in the company’s history, profitability on an EBITDA basis, these additional funds will enable DG Systems to pursue aggressively its growth initiatives of increasing penetration of its video network and developing products and services for delivery via the Internet, such as iAudio,” he added.