Robert F.X. Sillerman Recapitalizes Gateway Industries, Inc.
Robert F.X. Sillerman, media entrepreneur, announced today that he has completed the recapitalization of Gateway Industries, Inc. (GWAY.PK), effective February 11, 2011. Following the reverse 1 for 10 stock split which became effective on February 16, 2011, 120,000,000 shares were acquired by Mr. Sillerman, affiliates and investors approved by him at $0.03 per share. As part of the recapitalization, the Company changed its name to Function (X) Inc. and its stock symbol to FNCX. Immediately after the recapitalization, Function (X) raised an additional $10.5 million through the issuance of 940,000 shares at approximately $0.53 per share and 13,232,597 at approximately $0.76 per share.
Mr. Sillerman has made his investment in the Company to establish a new platform for investments in media and entertainment, with a particular emphasis on digital and mobile technology. Mr. Sillerman is evaluating several initiatives aimed at combining certain established business principles with a new element enabled by digital and mobile distribution capabilities. An initial product under consideration would emphasize Smartphone application, with a goal of being ready for Beta testing in the 3rd quarter of 2011. The Company is not disclosing any details about this product for competitive reasons, and because this product has not reached the stage of a specific plan for its commercial adaptation.
For further details regarding the recapitalization transaction and the risks associated with any investment in the Company, please see the Company’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission on February 16, 2011.
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