NEW YORK – Streamedia Communications Inc., a producer of audio and video programming, went public December 21, offering 1.2 million shares at $8.50 apiece. The company’s stock priced exactly at its $8.50 filing price.
Underwritten by Institutional Equity Corp. and Capital West Securities Inc., the initial public offering left 4.5 million shares outstanding.
Capital Markets Communications Corp. and Projix Corp. were venture backers. There were no selling shareholders.
Streamedia delivers audio and video programming over the Internet, as well as through other modes of digital media distribution. The broadcasts feature a variety of topics such as parenting, romance, careers, business, sports, news, hobbies, gardening and food.
The company plans to use the expected $8.8 million generated from the initial public offering for strategic acquisitions, to repay debt, for content license and acquisition, working capital, sales, marketing and promotion, and for capital equipment.
Streamedia has never been profitable, losing $1.1 million in the nine months ended September 30, 1999.
David Simonetti, a 90% owner of Projix, joined the company’s board of directors in September 1998.
Streamedia Communications – Selected Financial
(in thousands, except per share data)
April 29, 1998 (inception) Nine Months Ended
to December 31, 1998 September 30, 1999
Net loss -297 -1,065
Net loss per share -0.1 -0.33