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Subsequent Events
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9 Months Ended |
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Jun. 30, 2011
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| Subsequent Events |
Note 14: Subsequent Events
Term Sheet for $1,500,000 Equity Investment
On
July 5, 2011, the Company received an executed term sheet
from a prospective investor based in Japan
(“Investor”), setting forth certain terms and
conditions of a proposed $1,500,000 investment in the Company. The
term sheet, which is legally non-binding, provides
that Investor and certain co-investors would purchase an
aggregate of 600,000 newly issued shares of the Company’s
common stock at a purchase price of $2.50 per share. Investor
and its co-investors would also be entitled to appoint up to five
members of the Company’s board of directors, who could be
current directors or new appointees, subject to applicable rules
and regulations of the Securities and Exchange Commission and The
Nasdaq Stock Market.
The
proposed investment transaction is subject to certain conditions,
including the completion of Investor's due diligence review of
the Company, the parties’ execution and delivery of a
definitive stock purchase agreement, and the approval of the
Company’s stockholders. Unless and until a definitive stock
purchase agreement is executed and stockholder approval is
obtained, Investor will not be obligated to consummate the
proposed investment.
20:19 Forward Stock Split
On July 19, 2011, the board of directors of LiveDeal, Inc. (the
“Company”) authorized and approved a 20:19 forward
stock split with respect to the Company’s issued
and outstanding common stock. The forward stock split will be
implemented in the form of a stock dividend, with one (1) share of
the Company’s common
stock to be issued in respect of every 19 shares of common stock
issued and outstanding as of July 29, 2011, the record date for the
forward stock split.
Any fractional shares otherwise issuable as a result of the forward
stock split will be rounded up to the nearest whole share. The
Company completed the
forward stock split which took effect on the NASDAQ Capital Market
on August 10, 2011.
Updates on Pending Litigation and Nasdaq Compliance
Issues
Reference
is made to the disclosures set forth under “Litigation”
and “Nasdaq Compliance Issues” in Note 10 (Commitments
and Contingencies) above.
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