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OTCPicks.com Daily Market Movers Digest Midday Report for Friday, January 4th EGLE, FREE, LNET, PSID, PLBI, AMHD Our Stocks to Watch today include Eagle Bulk Shipping Inc. (Nasdaq: EGLE), FreeSeas Inc. (Nasdaq: FREE), LodgeNet Interactive Corp. (Nasdaq: LNET), PositiveID Corp. (OTCBB: PSID), Proton Laboratories Inc. (OTC: PLBI) and Amelot Holdings Inc. (OTC: AMHD).
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http://otcpicknews.com/emailmarketer/link.phpM940&N56&L61&F=T Eagle Bulk Shipping Inc., together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide. The company owns, charters, and operates dry bulk vessels that transport a range of bulk cargoes, including iron ore, coal, grain, cement, and fertilizer. As of December 31, 2011, it owned and operated a fleet of 45 oceangoing vessels, 43 Supramax, and 2 Handymax with a combined carrying capacity of 2,451,259 deadweight tons. Eagle Bulk Shipping Inc. was founded in 2005 and is headquartered in New York, New York.
No recent news for Eagle Bulk Shipping Inc. (Nasdaq: EGLE).
FREESEAS INCORPORATED (NASDAQ: FREE) “Up 31.94% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N56&L51&F=T FreeSeas Inc. is a Marshall Islands corporation with principal offices in Athens, Greece. FreeSeas is engaged in the transportation of drybulk cargoes through the ownership and operation of drybulk carriers. Currently, it has a fleet of Handysize and Handymax vessels.
December 20 – FreeSeas Announces Results of Annual Meeting, Notice of Delisting From Nasdaq and Intention to Appeal FreeSeas Inc. (Nasdaq: FREE) (“FreeSeas” or the “Company”), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of Handysize and Handymax vessels, announced today that, at the annual meeting of the Company, the Company`s shareholders elected Xenophon Galinas to the Board of Directors for three years, approved a reverse split of the Company`s issued and outstanding common stock at a ratio of up to one (1) for every twelve (12) shares outstanding and ratified the appointment of Sherb & Co., LLP as the Company`s independent registered public accounting firm for the year ending December 31, 2012.
The Company also announced today that it has received a letter from the Nasdaq listing qualifications staff stating that the Company`s common stock will be delisted from the Nasdaq Global Market because the Company has not, during the 180-day grace period previously granted by Nasdaq, regained compliance with the Nasdaq continued listing requirement that the bid price of the Company`s common stock be at least $1.00 per share as set forth in Nasdaq Listing Rule Section 5450(a)(1). The Company may appeal such decision to a Nasdaq Hearings Panel within seven days from the date of the determination letter.
The Company currently intends to appeal such decision and intends to submit to Nasdaq a plan to regain compliance with such continued listing requirement. As a result of the submission of such appeal, the delisting of the Company`s common stock from the Nasdaq Global Market will be stayed until such time as a determination has been made on the Company`s appeal.
The Company`s plan of compliance will include, among other things, plans to consummate the reverse stock split of the Company`s issued and outstanding common stock as approved at the annual meeting. The Company`s board of directors has determined it is in the Company`s and its shareholders` best interest to defer the consummation of such reverse stock split until such time as it has formulated a complete plan of compliance to present to the Nasdaq Hearings Panel. The Company has also applied to list its shares on the Nasdaq Capital Market, which application has not yet been approved.
LODGENET INTERACTIVE CORPORATION (NASDAQ: LNET) “Up 13.50% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N56&L24&F=T LodgeNet Interactive Corporation is the leading provider of interactive media and connectivity services to hospitality and healthcare businesses and the consumers they serve. Recently named by Advertising Age as one of the Leading 100 US Media Companies, LodgeNet Interactive serves approximately 1.6 million hotel rooms worldwide in addition to healthcare facilities throughout the United States. The Company`s services include:
Interactive Television, Broadband and Advertising Media Solutions along with nationwide technical and professional support services. LodgeNet Interactive Corporation owns and operates businesses under the industry leading brands: LodgeNet, The Hotel Networks and LodgeNet Healthcare.
December 31 – LodgeNet Agrees To $60 Million Recapitalization With Global Investor Colony Capital Colony to Become Controlling Shareholder and Partner with DIRECTV to Build on LodgeNet`s Leadership in the Hospitality and Healthcare Markets LodgeNet Interactive Corp. (Nasdaq: LNET) (“LodgeNet” or the “Company”) announced that it has entered into a definitive agreement with a syndicate formed by an affiliate of Colony Capital (herein “Colony Syndicate”), a global investment firm with $38 billion in assets under management and a broad range of hospitality and media industry investments, pursuant to which the Colony Syndicate will provide $60 million of new capital to support a proposed recapitalization of the Company. In addition, the Company has received support from a steering committee of its lenders holding its debt for a multi-year extension of its existing $346 million secured credit facility.
The transaction will be implemented through an expedited Chapter 11 bankruptcy process, at the conclusion of which the Colony Syndicate would become the controlling stockholder of the Company. The plan of reorganization envisions that unsecured creditors of LodgeNet will be paid in full for any pre-petition claims at the conclusion of the Chapter 11 process.
Colony has also executed a memorandum of understanding with DIRECTV, LLC., setting forth certain terms pursuant to which LodgeNet and DIRECTV intend to operate as strategic partners within the hospitality and healthcare markets. As part of the expanded partnership between the two companies, DIRECTV will provide its world-class operational, technological and marketing capabilities to help deliver new and improved LodgeNet services to the industry.
Importantly, throughout this process, LodgeNet`s current hospitality and healthcare customers will continue to receive LodgeNet`s entertainment and connectivity services, as well as ongoing maintenance and support, without interruption.
Under the terms of these agreements, the Colony Syndicate will receive new common stock representing 100 percent ownership of LodgeNet. The Colony Syndicate`s investment and the new credit agreement provide added financial flexibility, while Colony Capital`s industry experience and DIRECTV`s new contributions will ensure LodgeNet`s continued market leadership as it works with customers to offer the best in-room entertainment and connectivity services available today.
The Company has also entered into a plan support agreement with a steering committee of its lenders holding its outstanding senior debt, pursuant to which the lenders have agreed to support the Colony Syndicate`s transaction and the proposed amendment and extension of the credit agreement with its lenders, and to vote in favor of the Company`s proposed plan of reorganization. The Company has also received a commitment for a debtor-in-possession (DIP) loan from certain of its lenders that would provide up to $15 million in financing, providing additional liquidity during this process.
In order to provide LodgeNet time to solicit votes on the proposed Chapter 11 plan, DIRECTV, HBO and the steering committee of lenders have agreed to extensions of their existing forbearance agreements.
“As one of the largest investors in hospitality and media enterprises around the globe, and with a strong track-record of success, Colony Capital brings an unmatched combination of strategic acumen and financial resources to LodgeNet and its industry-leading footprint of 1.5 million hotel rooms,” said LodgeNet Interactive chairman Doug Bradbury. “Under Colony`s leadership, LodgeNet is poised to transform its business through renewed financial strength, the introduction of new and innovative products and services, and strengthened industry relationships, thus re-affirming its position as the leading provider of interactive services to the hospitality and healthcare industries.” LodgeNet and the Colony Syndicate have agreed to implement this transaction via an expedited Chapter 11 proceeding which would commence once the requisite consents of its lenders have been obtained. Concluding the recapitalization in a controlled, court-supervised environment will allow LodgeNet to continue operating without interruption, address short-term liquidity issues, complete the Colony Syndicate`s transaction, and amend the credit agreements with its lenders.
“As evidenced by our investments in hospitality, media and entertainment, we believe in these markets, and with LodgeNet positioned at the crossroads of all three, this opportunity is tailor-made for Colony Capital,” commented Richard Nanula, Principal at Colony Capital. “We look forward to leveraging our experience and key industry relationships to drive change at a critical time for the company and the industries it serves. Together with DIRECTV and our hospitality and healthcare customers, we are committed to building on the company`s position as the preeminent provider of commercial entertainment and connectivity services, as we believe strongly that for LodgeNet, the future is now.” Pursuant to the contemplated Chapter 11 filing, holders of the existing Series B Preferred Stock and common stock issued by LodgeNet Interactive will have their interests cancelled and will not receive any distributions.
The recapitalization is designed to enable a restructured LodgeNet Interactive to emerge from Chapter 11 on a standalone basis with strong cash flow and a solid balance sheet.
Key terms of the recapitalization include:
* The Colony Syndicate will invest $60 million in exchange for all of the new shares of common stock of LodgeNet Interactive; * LodgeNet`s existing Credit Agreement will be amended to provide an extension in the form of a 5-year term loan in an aggregate amount equal to (i) $346.4 million plus (ii) the amount of accrued and unpaid interest that was capitalized prior to the Closing Date; * Based on the terms of the recently executed memorandum of understanding between Colony and DIRECTV, LodgeNet and DIRECTV will enter into a new agreement pursuant to which they will work under an expanded new strategic partnership, far exceeding the scope of the parties` current free-to-guest programming agreement, to include DIRECTV branding, programming and content, advertising, and support across all facets of operations, infrastructure and technology. This strategic partnership is expected to enhance the experience for new and existing hotel and healthcare customers, improve service capabilities and provide additional promotional options that will reduce or eliminate capital requirements within the industry.
Closing of the transaction is subject to various closing conditions, including Bankruptcy Court confirmation of a Chapter 11 Plan. Accordingly, no assurances can be given that the transaction will be consummated.
POSITIVEID CORPORATION (OTCBB: PSID) “Up 16.33% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N56&L59&F=T PositiveID Corporation develops and markets healthcare and information management products through its RFID-based diagnostic devices and identification technologies, and its proprietary disease management tools.
PositiveID operates in two main divisions: HealthID and ID Security.
January 3 – In a New Audio Interview at SmallCapVoice.com, William J.
Caragol, Chairman and CEO of PositiveID, Provides Details Regarding License and Teaming Agreement With The Boeing Company In a New Audio Interview at SmallCapVoice.com, William J. Caragol, Chairman and CEO of PositiveID, Provides Details Regarding License and Teaming Agreement With The Boeing Company SmallCapVoice.com, Inc. announced that a new audio interview with PositiveID Corporation (OTCBB: PSID), an emerging growth company and developer of airborne bio-threat detection systems for America`s homeland defense industry as well as advanced technologies for rapid medical testing and diabetes management, is now available. The interview can be heard at http://otcpicknews.com/emailmarketer/link.phpM940&N56&L62&F=T.
William J. Caragol, Chairman and CEO of PositiveID, stated, “By entering into this teaming agreement with such a world-class company, we believe we have positioned our unique M-BAND system to be an integral component of the upcoming $3.1 billion BioWatch Gen-3 system procurement. We will also maintain our role as the exclusive provider of assays and reagents under the teaming agreement for this important homeland defense program.” PROTON LABORATORIES INCORPORATED (OTC: PLBI) “Up 200.00% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N56&L41&F=T Proton Laboratories, Inc., a development stage company, focuses on the research, cultivation, and utilization of stem cells for the treatment of patients. It intends to use an individual own stem cells, which are harvested from the fatty tissues of the stomach and then cultivated and re-injected into the same person for regenerative purpose. Proton Laboratories, Inc. was founded in 2008 and is based in Puerto Plata, the Dominican Republic.
No recent news for Proton Laboratories, Inc. (OTC: PLBI).
AMELOT HOLDINGS INCORPORATED (OTC: AMHD) “Up 100.00% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N56&L96&F=T Amelot Holdings, Inc. (www.amelotholdings.com), a publicly traded company, is a diversified holding company that has identified Biodiesel as a $20 billion emerging market. Amelot plans to have a significant market share in growing low cost feedstocks to supply the growing demand for biodiesel, to reduce energy dependency of fossil fuels, to help reduce the U.S.
dependency on foreign oil supplies and reduce the impact of energy on our environment.
No recent news for Amelot Holdings, Inc. (OTC: AMHD).
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