Friday, July 22, 2005

Watchit Media to Pursue Future In Dynamic Narrowcasting Market

Cotelligent, now known as Watchit Media, has been in the business of rolling out their own digital signage networks for some time. But I guess the cash crunch has gotten to them, as they're divesting non-core businesses for cash now:

Cotelligent, Inc. (OTCBB:CGZT) today announced it has sold its sales force automation software and services solutions business to Fastech Integrated Solutions, LLC, an affiliate of Beverly Hills based private investment firm, Skyview Capital, LLC. The transaction, which closed Friday July 15, 2005, provided Cotelligent with $2.3 million in cash at closing and the potential to earn up to an additional $1.45 million over the next three years.

The divestiture required approval of Cotelligent's stockholders. A special meeting of the stockholders was held on Wednesday July 13, 2005. 15,849,909 shares, or approximately 56%, of Cotelligent's issued and outstanding shares of common stock, were voted at the special meeting with 15,538,079 shares, or approximately 98% of the shares voted at the meeting (approximately 54% of the shares outstanding and entitled to vote), voted in favor of the divestiture, 293,790 shares, or approximately 2% of the shares voted at the meeting (approximately 1% of the shares outstanding and entitled to vote), voted against the divestiture and 18,040 shares which abstained from voting.

The kinds of narrowcasting networks that Watchit focused on are notoriously hard to prove a ROI on, so that might have had something to do with it. Read the full press release here.

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