Orbit E-Commerce, Inc. announced that it has entered into an agreement to merge with Hollywood Classics Network, Inc. ("HCN") a privately held California corporation. HCN provides programming and advertising to independent television stations, Multiple Systems Operators (MSO's) controlling cable stations and direct broadcast satellite companies. HCN has a large classic film library from Hollywood's "Golden Era" as well as a 24-hour television network that will feature classic movies, talk shows, celebrity interviews and programs for consumers of all ages.
As a result of this merger OECI will have access to a substantial library of Classic Hollywood films and other television content for its IPTV channel lineup. This merger brings a highly experienced Management team in the entertainment industry, a second revenue stream for OECI from HCN's operations and significantly strengthening the Company's balance sheet. "This is a great acquisition for OECI as it immediately addresses the time to market for the IPTV content. Furthermore, HCN's management will continue to build their current business and manage OECI's daily operations. OECI's corporate offices will relocate to HCN's facilities in Los Angeles, CA," said Douglas Lloyd, President & CEO of Orbit E-Commerce, Inc.
HCN partners with a Company having an Internet Protocol Television (IPTV) system which it will use as a delivery vehicle to offer HCN content to OECI's subscribers. "This transaction with OECI gives HCN a large market for our film library and other unique television content," said Paul Webb, Chairman & CEO of Hollywood Classics Network, Inc.
OECI will acquire all the issued and outstanding shares of HCN through a share exchange which will increase OECI's common shares issued and outstanding to approximately 73.1 million.
As previously announced, the merger of OECI with PureNet.TV in conjunction with HCN will be completed and it is the company's intention to apply for a listing on the AMEX exchange upon completion of the mergers. The companies have committed to the execution of a definitive merger agreement as soon as possible with completion subject to regulatory approvals and other customary closing conditions.