JumpTV Announces Exercise of Underwriters' Option to Purchase Additional 1,273,500 Shares
August 30, 2006TORONTO--(CCNMatthews - August 30, 2006) - Further to the announcement dated 10 August 2006, JumpTV Inc. ("JumpTV" or the "Company") (AIM: JTV) (TSX: JTV) (www.jumptv.com), the world's leading broadcaster of ethnic television over the Internet, announced that the underwriters of the Company's recent initial public offering have exercised in part their over-allotment option referred to in the prospectus issued by the Company on 10 August 2006, by purchasing 1,273,500 shares of common stock at the offering price of Cdn$5.50.
The exercise of the over-allotment option increases the number of shares sold in the initial public offering from 12,000,000 shares to 13,273,500 shares, resulting in aggregate gross proceeds to the Company of approximately Cdn$73 million (an increase of approximately Cdn$7m).
JumpTV expects to use the net proceeds of the offering to fund:
-- the continued roll-out of the JumpTV delivery infrastructure;
-- further investment in product development and technology;
-- JumpTV's subscriber acquisition strategy; and
-- general corporate expenditure and working capital requirements of JumpTV's business including possible acquisitions.
Morgan Stanley Securities Limited and Canaccord Adams Limited acted as underwriters for the Company.
Application has been made for the over-allotment shares to be admitted to AIM.