The parent company of US D2C player New Motion has raised $10 million from a private placement to further its ambitions in the content space.
MPLC has also initiated a process that will see a 300-to-1 reverse stock split come into effect in 30-to-60 days.Founded in 2005 and run by Burton Katz, who made his name with Buongiorno, New Motion brands include MobileSidewalk, RingtoneChannel and Bid4Prizes. It also bought US messaging specialist Mobliss in January.
Katz said: "We are excited about the completion of the Series D private placement. This completes a series of transactions whereby we have acquired and financed New Motion, a consumer digital entertainment company that is now well positioned to take advantage of projected growth in the mobile entertainment market."
In the placement, MPLC sold approximately 8,334 shares of its Series D Preferred Stock which are convertible into an aggregate of approximately 500,040,000 shares of its Common Stock. This results in an effective price per share of Common Stock of approximately $.02.
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