Sale of Livewire Mobile Business Assets to OnMobile Has Closed
Company to be Re-named; Management Transitions Announced
RADNOR, Pa.--(BUSINESS WIRE)-- Livewire Mobile, Inc. announced today that the sale of certain of its assets and liabilities to OnMobile Global Limited has closed.
In connection with the closing, the Company received cash proceeds (net of transaction costs) of approximately $14.3 million. An additional $2.9 million was placed into escrow for certain performance and other contingencies. No distributions to shareholders are planned at this time.
$1.74 million of the proceeds will be deposited with the United States District Court of Massachusetts in compliance with an order stemming from a suit brought by two former directors of the Company's non-operating Bangalore, India subsidiary seeking indemnification against potential Indian tax liabilities. The Company continues to believe these indemnification claims as well as their associated underlying Indian tax claims are without merit and is maintaining a vigorous defense.
The Company will immediately proceed to change its name to Live Microsystems. Live Microsystems, with its remaining assets and liabilities, will continue to trade on the limited-disclosure tier of OTC Markets and has applied for the new stock symbol LMSC.
Investors seeking future information concerning the company or its stock are advised to look for company press releases filed on the OTC Markets under the symbol LMSC. This will be the only location that future corporate information is guaranteed to be posted.
Also effective with the closing, the majority of the Company's employees have become employees of OnMobile. Further, the Company announces the following management changes:
Robert Pons will continue as Chairman of the Board of Live Microsystems;
Matthew Stecker will retain his role as CEO of Live Microsystems, and also become Treasurer;
Todd Donahue, formerly CFO, has accepted a leadership role at OnMobile;
Matt Gerritsen will retain his role as General Counsel of Live Microsystems
"We're excited to have closed this transaction and are eagerly pursuing new business opportunities that will allow us to take advantage of our operating structure and large cumulative NOL in a way that is favorable for all shareholders. We will also be working to secure successful redemption of escrow funds related to the OnMobile transaction as well as favorably dispose of existing litigation," said Matthew Stecker, CEO of Live Microsystems.
Live Microsystems' new corporate address and contact information:
150 N. Radnor Chester Road
Radnor, PA, 19087
About Live Microsystems
For more information please visit, www.livemicrosystems.com.
OnMobile [NSE India: ONMOBILE], headquartered in Bangalore, India, with services in 59 countries, is the leading Value Added Services [VAS] company for Mobile, Landline and Media Service Providers. OnMobile offers an innovative array of products in Mobile Entertainment, Search and Discovery and Mobile Cloud services. The products span a range of delivery channels, enabling OnMobile's 92 telecom and media customers to generate high revenues. With over 1600 employees worldwide, OnMobile has offices around the globe, including London, Paris, Madrid, Silicon Valley, Miami and Seattle.
Statements other than historical facts specifically including, but not limited to, all financial projections and future expectations of the Company, included or referred to in this Press Release are "forward-looking statements". These statements are based on management's expectations as of the date of this document and are subject to uncertainties and changes in circumstances. Actual results may differ materially from these expectations due to risks and uncertainties in circumstances. In addition, while management may elect to update forward-looking statements at some point in the future, management specifically disclaims any obligation to do so, even if it estimates change. Any reference to our website in this press release is not intended to incorporate the contents thereof into this press release or any other public announcement.
Matthew Stecker, 610-977-2093
KEYWORDS: United States North America Pennsylvania
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