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.

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.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource