StreamTrack and Google have something in common... monetization expansion.
In the late 1990s, Google was born and began to capture market share from the already established search engines and search directory services (Yahoo!, AltaVista, Looksmart, Lycos, etc). But even after Google had captured a significant percent of the total search volume, they had heap of eyeballs but relatively little revenue. And as we know from the dotcom bust of the 90s, eyeballs without 'monetization' is a sure recipe for failure.
Wall Street uses the term 'monetization' as a fancy way of saying 'figuring out a way to generate significant revenue' from the activities of a corporation. It was Google's monetization of the search eyeballs via Google adwords and the resulting 'sponsored ads' that has driven the investment community to assign Google a value of more than one-third of a trillion dollars (> $350 billion market cap).
In some ways, internet radio has created a similar opportunity. And here's what I mean by that. In the days where radio was simply an audio medium, monetization could only be achieved though audio commercials. By StreamTrack allowing for an additional source of monetization via visual sponsored ads (and various interactive elements), it has added additional dimensions to revenue generation.
In addition to the video ads, StreamTrack offers various ways for the listener/user to interact with the application, providing the listener with an opportunity to earn additional points while listening to the radio station(s).
As we know, more and more TV programs are becoming interactive (incorporating twitter feeds and real-time questions/surveys) during the broadcast. Doesn't that sort of validate StreamTrack's interactive approach to monetization.
It would not surprise me if we saw a huge run here. As always, simply my opinion.
And here are several positives regarding the terms of the $3 million Series C Preferred share funding arrangement...
As has been pointed out, one positive is that the typical discount of 20% to 50% does not apply here, if/when conversions stemming from the (up to) $3 million in funding occur.
But there are a number of other positives with respect to the terms:
-Conversion price will be based upon the closing share price. I've seen conversion terms based upon the closing 'bid', or even worse, the trading low of the day. Since there's about a 50 percent chance of the stock closing at the ask, computing a conversion calc on the closing price increases the odds of a more favorable conversion value for the other shareholders.
-Conversion price will be based upon a 10 trading-day average. I've often seen conversion terms where the calc only considers the lowest X (3 or 5, for example) days within the period of measurement. By including all days within the 10 day period for purposes of any conversion calculation, it increases the odds of a more favorable conversion value for the other shareholders, since any up days within the full period will be factored in.
All in all, it seems as though the stated terms for the potential financing covered in today's after-the-bell 8-k are shareholder friendly. As always, simply my opinion.
'Each share of Series C Preferred Stock is convertible into $150 in fair market value of the Company’s common stock, which fair market value will be equal to the average closing price of the common stock on the over-the-counter market during the 10 trading days immediately prior to the delivery to the Company of a conversion notice'
STTK
