29th May 2014 09:58
LONDON (Alliance News) - PeerTV PLC Thursday said an unnamed US-based company has agreed to purchase its set top box to supply its over-the top content network and distribute PeerTV products in North America and Ireland.
Over-the-top content refers to delivery of video, audio and other media. A set top box is an information appliance device that generally contains a TV-tuner input and displays output connects to a television set and an external source of signal.
The US company plans to roll out OTT services in several countries over the next two years and PeerTV will become its exclusive set top box supplier.
In turn, PeerTV said it will grant the US company an exclusive distributorship in North America and Ireland, subject to the achievement of sales of at least USD3 million over the first three years.
The US company is committing to purchase a minimum of 50,000 PeerTV set top box units within three years. The companies will cooperate in product development and marketing.
In a separate note, the company said further to a placing announced Wednesday, it has received a further GBP45,500, taking the total amount received following the placing to GBP214,000. The firm issued and allotted 4.6 million shares at a price of 1 pence per share.
PeerTV said consideration for the remaining GBP52,300 to be received under the placing is expected to be remitted to the company by June 15 with the resulting 5.2 million shares issued and allotted to investors once the funds are received.
PeerTV shares were quoted up 3.8% at 1.30 pence Thursday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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