Hispanic Television Network HTVN is taking steps to strengthen its financial base by eliminating 31 non-revenue-generating positions, and by working with certain investors to help meet immediate short-term cash needs.
"As evidenced by our Multivision programming agreement announced earlier this month, HTVN remains solidly committed to developing a strong Spanish-language television network for the growing U.S. Mexican Hispanic population," said Marco Camacho, HTVN president and chief executive officer. "Meetings are in progress with two large investment groups that are interested in HTVN's business plan. The investor groups have expressed special interest in HTVN's launch into the Los Angeles market, next month on KJLA-TV, which is an example of our commitment to a full-power, major-market focus. We believe that the Los Angeles market presents a significant opportunity to increase revenues and profitability. We already are redirecting many of the company's resources to Los Angeles.
"Our private placement earlier this year was intended to be an interim capital solution," Camacho said. "Due to the tremendous downturn in the stock market, HTVN was forced to explore other sources of capital."
In January 2000, the company completed a private-placement that included HTVN common stock and warrants to purchase common stock. The company has asked investors who participated in the private placement to exercise their warrants by year-end 2000 under an HTVN board approved and authorized recasting of the exercise price of warrants.
HTVN has told its warrant holders that each investor who exercises warrants and submits funds by Dec. 31, 2000, will receive three shares of HTVN stock for every $2 warrant exercised. Each investor also will be issued an additional warrant to purchase one share of HTVN common stock at an exercise price of $2 a share by June 30, 2001.
"While HTVN is exploring funding options, we feel it is important to note that the company is in full compliance with its credit facility led by Goff Moore Strategic Partners, L.P.," Camacho said.