Trading on PlayBox, Inc. (PYBX.OB), a media entertainment technology company that offers a wide variety of distribution channels for new music artists, climbed nearly 20 percent earlier this week when the company announced it is in the final stages of acquiring Delta Leisure Group, PLC, the parent company of Delta Music, one of the United Kingdom’s most successful independent record companies.
Under the terms of the purchase share agreement, PlayBox will acquire 100 percent of the issued share capital of U.K.-based Delta Leisure Group PLC, a private company that owns 75 percent interest of the issued share capital of Delta Music, and 25 percent of the share capital of Delta Music. Further enhancing the terms of the acquisition is the fact that Delta Music has a long-term license with mobile content provider X5 for the global distribution of its music copyrights to mobile phones.
Upon completion of the acquisition, PlayBox will control over 700 retail outlets in the U.K., effectively accelerating the company’s ability to quickly distribute newly purchased content to end users. The acquisition is subject the completion by a private placement financing to raise gross proceeds of no less than $4 million by no later than June 30, 2008, or the deal will be terminated.
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