Local firm invests in UK-based Narrowstep
Friday, February 24, 2006
The Trentonian
By Andria Y. Carter, Asst. City Editor
TRENTON - David McCourt is very excited to be back in London. Since leaving the top post at RCN, McCourt has been traveling extensively throughout Europe looking for different deals for his Princeton based investment firm.
Staying true to his background in the telecommunications and media industries, McCourt is looking for investments that not only keep him abreast of today's technology, but in fact take him to the cutting edge of the industry.
On Thursday, McCourt, president and chief executive officer of Granahan McCourt Capital, LLC, announced it is the lead investor in providing a London-based television on the Internet company, Narrowstep, $7.4 million in financing to help fund its business plan and future growth.
Working with Granahan McCourt on the deal is MicroCapital, LLC and Sano Ventures with Dominick & Dominick, LLC acting as the placement agent.
For their 33 percent investment, the investment firms are purchasing over 12 million shares at a purchase price of 60 cents per share. The investors are also receiving five-year warrants giving them the right to purchase an aggregate of 12 million, half at the 60 cent per share price and the other half at $1.20 per share.
The deal is expected to be completed when Narrowstep receives a final payment on March 7. The company has already received $5.84 million of the purchase price, officials said.
"I am very excited about Narrowstep's future, "said Iolo Jones, chief executive officer. "This should provide us with the funds necessary to execute our business plan and drive the next phase of our growth."
Narrowstep is the leading provider of IP-delivered video content based on its award-winning TelVOS platform - the most comprehensive commercial and audio system on the market.
The company's customers range from sports organizations to government agencies, broadcasters and telecommunications providers in Europe, the United States and Asia.
With over 70 channels launched, Narrowstep customers and channels include ITV, the UK's top commercial broadcaster, the Torino 2006 Paralympic Winter Games as well as Sail.tv, London TV, and Cycling.tv.
For McCourt, the deal represents more than being on the cutting edge of the telecommunications industry, but a chance to be part of a company that will change how entertainment content is distributed around the world.
Currently the film and media companies based in New York and California strongly dominate distribution of content for the television and film industry. But as the Internet and emerging technologies change how people are entertained, that dominance will be curtailed.
America's television and film industry have a trade surplus with every country around the world, McCourt explained from London.
McCourt is excited by this prospect because independent producers - especially those from other countries - have a chance to distribute their product, especially to a narrow audience that is not being served.
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