Stmnt re Share Price Movement
March 03 2009 - 2:00AM
UK Regulatory
TIDMBRST
RNS Number : 1809O
Burst Media Corporation
03 March 2009
3 March 2009
Burst Media Corporation ("Burst" or the "Company")
Statement re recent share price movement and year end trading update
The Directors of Burst (the "Board") have noted the recent movements in the
Burst share price and provide the following statement.
The Board emphasises that it is not currently negotiating with any third party
with regards a possible offer for the Company. However, on 22 January 2009, the
Board received an unsolicited indicative expression of interest regarding a
potential cash offer for the Company at a price of between 6.3 pence and 7.0
pence per Burst share (the "Expression of Interest"). The Expression of Interest
represented a discount to the value per share of the Company's cash balance and
the Board unanimously rejected it as wholly inappropriate and unreflective of
the worth of the Burst businesses. The Board acknowledges the possibility that
the Expression of Interest may be revised and resubmitted for further
consideration in due course.
The Board will continue to evaluate any appropriate approaches
received. However, as highlighted in the Company's announcement on 21 January
2009, the Board believes that, in view of its current trading performance and
strong balance sheet and the challenging macro economic climate, proactive
efforts to sell the Company at this time would not be in the best interest of
Burst shareholders. The Board is focusing on the ongoing development of the
Company and believes that opportunities exist for the Company to take advantage
of its relative strength to add critical mass to its businesses and to generate
shareholder value.
In addition, the Board is now in a position to provide an update regarding
trading for the year ended 31 December 2008. On 24 July 2008, the Company
announced that it expected Adjusted
EBITDA(1) for the year to 31 December
2008 to be between $(0.7) million and $0.5 million. The Board currently expects
Adjusted EBITDA for the year to 31 December 2008 to be at the top end of this
indicated range.
It should be noted that, as a US corporation, the City Code on Takeovers and
Mergers does not apply to the Company. Further announcements will be made as
appropriate.
Note:
(1) "Adjusted EBITDA" is defined as net income excluding restructuring charges
and stock-based compensation before interest income, taxes, depreciation and
amortization and costs relating to the current review of strategic alternatives
and is a non-U.S. GAAP financial measure. The Company believes Adjusted EBITDA
provides meaningful insight into the Company's ongoing economic performance and
therefore uses it internally to assist in evaluating and managing the Company's
operations.
Enquiries:
+------------------------------------+------------------------------------+
| Burst Media Corporation | |
+------------------------------------+------------------------------------+
| Jarvis Coffin, Chief Executive | Tel: +1 781 852 5271 |
| Steve Hill, Chief Financial | |
| Officer | |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
| Altium | |
+------------------------------------+------------------------------------+
| Tim Richardson / Paul Chamberlain | Tel: +44 (0) 20 7484 4040 |
+------------------------------------+------------------------------------+
+------------------------------------+------------------------------------+
| Hudson Sandler | |
+------------------------------------+------------------------------------+
| Nick Lyon / James White | Tel: +44 (0) 20 7796 4133 |
+------------------------------------+------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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