Medialink settles complaint with debt holders

NEW YORK: Medialink Worldwide has resolved a complaint filed by former debt holders, clearing the way for the company to proceed with its acquisition by The Newsmarket.

NEW YORK: Medialink Worldwide has resolved a complaint filed by former debt holders, clearing the way for the company to proceed with its acquisition by The Newsmarket.  

On July 7, Medialink filed an 8-K with the Securities and Exchange Commission (SEC) stating that Iroquois Capital, Smithfield Fiduciary, Rockmore Capital, and Portside Growth and Opportunity Fund gave it “written notice that they intend to file a complaint seeking to block the Company's recently announced merger.” These debt holders had received $1.59 million to satisfy outstanding debts and continued to hold warrants to purchase 536,729 shares of common stock at 50 cents and $3.99 per share, expiring on November 9, 2009.

A subsequent 8-K filing on July 27 announced that Medialink and its debt holders reached an agreement whereby Medialink has paid $515,000 to settle the debt and $10,000 in aggregate to purchase 536,729 shares of common stock back. They no longer hold any warrants.  

"Everything is going according to plan," said James Lonergan, president and CEO of The NewsMarket. "We're on track.”

Medialink could not be reached for comment.

The NewsMarket announced plans to acquire Medialink on July 1. The merger is subject to approval from Medialink's shareholders. Initially, a special meeting of shareholders was anticipated for August. A subsequent SEC filing now states that meeting will take place in September.

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