IRVINE, Calif., Aug. 2, 2011 /PRNewswire/ -- Aftermarket
Enterprises, Inc. (OTCBB: AFTM) today announced that it has
acquired AllDigital, Inc. ("AllDigital"), an Irvine based technology company, in a tax-free
reverse merger transaction (the "Merger"), and simultaneously
closed a private placement of over $1,000,000. AllDigital offers technology and
turnkey solutions that enable the secure transport of digital media
to multiple connected devices simultaneously.
According to Gartner, the market for cloud-based services is
estimated to grow from $47 billion
today to $74 billion by 2014.
"These transactions enable AllDigital to pursue a series of
significant opportunities for the company and its shareholders,"
commented Paul Summers,
CEO/President of AllDigital. "We now have the platform and
additional resources to fund the development of new technologies
and solutions, expand our sales and marketing efforts, seek
acquisitions and strategic opportunities with a public currency, as
well as attract world-class employees and board of directors."
Founded in August 2009, AllDigital
has developed a digital service platform branded as Media i/o.
AllDigital's Media i/o provides a centralized data storage and
application processing platform that provides control and security
over digital media assets (such as video, applications, and
cloud-based processes). Key features of Media i/o include: origin
application management, data storage, ability to run custom
applications, entitlement, security, reporting/analytics, quality
of service monitoring, and technical support. Clients of AllDigital
include Rogers Communications, Miramax, AEG Digital Media, SC
Johnson, and Lenco Mobile, among others.
AllDigital's three founders exchanged 100% of their holdings in
AllDigital for 18 million shares of common stock in, and control
of, Aftermarket in connection with the Merger.
Concurrent with the Merger, Aftermarket announced the closing of
a private placement of approximately 2.1 million units of its
securities to qualified accredited investors for total gross
proceeds of approximately $1.05
million. The private placement included the conversion of
$500,000 in bridge financing raised
by AllDigital, Inc. in connection with the transactions. Each unit
of the private placement was valued at $.50, and consisted of two shares of the common
stock of Aftermarket and one warrant. Each warrant entitles the
holder to purchase one share of common stock for a three-year
period at an exercise price of $.50
per share, and is callable by the company under certain terms and
conditions.
As a result of the Merger and the offering, Aftermarket now has
a total of approximately 25.3 million shares of stock issued and
outstanding, and the officers and directors of AllDigital became
the officers and directors of Aftermarket at closing.
AllDigital's executive management team has extensive digital
media industry experience, success in founding and successfully
selling privately held and publicly traded digital media companies,
longstanding industry relationships, and experience serving in
multiple executive capacities.
The name of the company will continue to be Aftermarket, and the
trading symbol "AFTM" until the company completes and files with
the SEC an information statement related to a name change to
"AllDigital". This process is expected to take approximately
60 days.
The securities sold in the private placement have not been
registered under the Securities Act of 1933 and may not be resold
absent registration under or exemption from such Act. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy any securities.
About AllDigital Inc.
AllDigital offers technology and turnkey solutions to enable the
secure transport of digital media to multiple connected devices
simultaneously, including mobile computing devices, desktop
computers, and digital televisions. The company primarily targets
content owners and enterprises that have a need to distribute their
media assets and online services to a highly fragmented market of
IP-enabled devices.
Safe Harbor Statement
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking statements
as that term is defined in the Private Securities Litigation Reform
Act of 1995. Any forward-looking statements contained herein are
based on current expectations, but are subject to a number of risks
and uncertainties. The factors that could cause actual future
results to differ materially from current expectations include, but
are not limited to, the risk that the company new business will not
expand as projected for a number of potential reasons, including
the existence of competing businesses (including in-house groups of
larger corporations) with significantly more resources and access
to capital; the risk that the company will not be able to attract
experienced employees, directors and consultants as a result of the
early stage of its development and associated risks; and the risks
that a market will not develop for the company's common stock and
that, if it develops, it will involve low volume of trading, low
prices and high volatility. Additional risks will be identified in
the company future filings with the SEC. We do not undertake
to update these forward-looking statements made by us.
SOURCE AllDigital, Inc.