FORT LAUDERDALE, FL--(Marketwired - Dec 1, 2015) - RealBiz Media Group, Inc. (
RealBiz management identified the debt instrument as a priority of the Company and made it a short term objective of RealBiz to redeem the debt. In total $680,000 was raised through a Private Placement Memorandum (PPM), far outpacing the necessary $500,000 for debt retirement. The balance of the funds will be used for corporate expansion and marketing purposes.
Don Monaco, Chairman of the Board of RealBiz, invested $300,000 in the PPM. He additionally converted $50,000 of short term debt into equity. SRA Partners of San Francisco invested $200,000 in the PPM, joining a host of other shareholders including the company's CFO Tom Grbelja.
"It was a strong vote of confidence seeing our Chairman and a host of shareholders participate so substantially in the offering. The fact that RealBiz was able to do this without raising a single penny of new debt shows the belief and confidence our shareholders hold in the new management team and the underlying strength of our business model. We felt that redeeming these securities was of critical importance as they represented a potential for constant downward pressure on our stock price. Moving forward, this action will allow the company's stock to trade based on a more direct correlation to its business growth and potential," said Alex O. Aliksanyan, Chief Executive Officer of RealBiz.
Under the terms of the settlement and purchase agreement, the convertible notes and approximately 2,300,000 of warrants will be cancelled and of no further force and effect.
About RealBiz Media Group, Inc.
RealBiz Media Group, Inc. is a real estate digital media and technology company whose proprietary video processing technology makes it one of the leaders in providing home video tours to the real estate industry. Its client base reaches more than 350,000 real estate agents and brokers. The company provides a series of products including a consumer portal at http://www.nestbuilder.com, an agent-only platform known as PowerAgent, an agent social media and marketing solution known as ReachFactor, a growing MVA network, virtual tours and mobile apps. The company enjoys access to many of the nation's largest real estate companies with numerous approved vendors and national contracts.
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plan, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks described in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements that may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.