-- Do we receive any additional revenue for "enhanced" features on CD's and / or advertising on CD? I don’t think so. I think this feature would drive revenue for the record company.
-- BMG - are all or most of their commercial/retail releases including
MM5? All releases have been MM3 so far. Dave Matthews will also be MM3. According to a few different people that I asked during the break, MM5 is ready to go but the record companies have not wanted to move forward as they have been asking for little changes to customize it. As I understand, it is ready to go as soon as the labels want to move forward with it. They were hoping that the Foo Fighters release would be MM5.
-- BMG Canada going commercial was announced June 2004, how is that progressing? They had rolling slides proclaiming different factoids. One of them named the first CD released in Canada with MM. I don’t remember the name.
-- Universal, EMI, independents, etc. - when will they really commit? EMI will be releasing Janet Jackson in New Zealand and Australia with MM.
-- When will the company really be cash-flow positive? Later this year. Q3/4
-- Why are another 90 million shares needed now? Treasure chest for any costs/needs for and until the merger.
-- The June 2004 announcement "SunnComm Achieves Breakthrough in DVD Protection" with "major motion picture distributor for testing in the ‘real’ world later this year.” - What are the results? DVDs had been placed on the back burner so all energy could be focused on CDs. With the completion of MM5, resources can again be allocated for DVDs.
-- What's a realistic timeframe for the merger to be completed? Looking for Q3 depending on SEC.
-- When will we know if the merger can really be 1 for 1 ? Now. It will be 1:1
-- Won't MMXT have to issue a bunch of shares for this merger to be 1 for 1 ? Yes.
-- How is the merger better off by not giving shareholders their promised dividends? As previously stated, the SEC put a halt to more dividends. I have not done the math, but Peter indicated that by using a 1:1 merger, SCMI shareholders will own about the same % of MediaMax as they would have had the distributions gone through.
-- How are shareholders NOT hurt by the decision to not give the promised dividends? Because they will still own the company through the 1:1 merger.
-- Will Apple ever let us into their kingdom? We are in their kingdom.
-- How can we know what it really means when a CD appears (or disappears) on "the list" on the SunnComm web site? At this point, it means they are on the cd. Peter said to watch that list to see what we are on.
Shorts:
There best guess is that this is a big problem (A guy who is a professional trader got up and spoke at length on the topic. He says you can tell from watching the trading patterns. He thinks we have a good chance of causing a run is we pull from the DTC. Trades can still occur through the clearing agent, but they would be slow. The idea is to do this a few weeks ahead of the merger. That way, we would pull out then get the new shares which we could trade readily.
There were others at the meeting that may have more answers to other questions. If anyone has more questions, fire away. I answered everything off the list that I can recall.
tj
