TSX V : YOO
Shares issued: 40 million
After following the Company for quite some time, we are pleased to announce the addition of YANGAROO Inc. to our client portfolio!
If you watch TV, chances are pretty good that you’ve seen a commercial or two, yet you may not have thought twice about where it came from or the process involved with getting it to your screen. The same likely goes for awards shows. How does the award’s governing body determine who the winners are?
You may be surprised to find that this little company from Toronto plays a key role and is involved with some major brands. With current clients including MTV, The Grammy’s, FOX, NBC, Horizon Media, and countless other household names, the industry in which YANGAROO operates is just as interesting as the Company’s name.
YANGAROO has developed a cloud-based software called DMDS (Digital Media Distribution System), which is used by the music, award show and advertising industries. To put it quite simply, YANGAROO provides a platform for agencies and individuals to quickly, efficiently and safely send music and video files to broadcasters and media outlets.
Not only does DMDS replace the need for physical servers and satellites, but it also manages the entire process through automated quality control checks, advanced file formatting capabilities and content organization features - a huge advantage to outlets and agencies receiving countless files of various formats and sizes per day.
Currently, there are very few players in the North American digital media transferring industry, and YANGAROO has established itself as a viable competitor by proving its technology and adding major brand names to its client list.
Of note, the sector is going through consolidation. Extreme Reach, a private U.S. based company, announced this past August that it had struck a deal to acquire the T.V. broadcast and advertising distribution division of Digital Generation for $485 million. This has opened new opportunities for YANGAROO, which are expected to become much clearer to the investing public in the coming months.
The Company has undergone a significant transformation over the past 18 months under a new management team. Under the leadership of Gary Moss, a former senior IMAX executive, it recently completed a debt restructuring through the issuance of equity that saw over $6 million in notes carrying a 14% interest rate reduced to just over $2 million with a far more attractive 10% interest rate. This move alone will save close to $700 thousand a year.
In addition, YOO recently completed a private placement that was targeted for $1.25 million but exceeded expectations and closed at $1.6 million.
Following completion of the above two critical items, the stock was consolidated ten for one. There are now 40,089,271 million shares issued.
YANGAROO is quickly gaining traction with its patented technology, as management expects this year’s revenues to come in around $4.5 million and climb to between $9 and $12 million in 2014 with EBITDA of $2.5 to $5.5 million, respectively. This was the information that was provided in the company’s presentation during its recent meetings that lead to the successful financing.
With the Company’s technology proven and financial restructuring completed, YANGAROO is ready to officially launch its investor communications program and The Howard Group is very pleased to be on board.
The Howard Group will provide a thorough summary of YANGAROO when we release our detailed HG “Perspective” piece on the Company. Watch for YANGAROO’s client page on our website and in the meantime, visit http://yangaroo.dmds.com for more information.