Security is a Holistic Proposition

Gorka Sadowski

Subscribe to Gorka Sadowski: eMailAlertsEmail Alerts
Get Gorka Sadowski: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn


News Feed Item

Path 1 Grants Peaceful Possession of Collateral in Exchange for Full Satisfaction of $3.4 Million in Debt and Subsequent Sale of Assets to IP Video Networks, Inc.

Path 1 Grants Peaceful Possession of Collateral in Exchange for Full Satisfaction of $3.4 Million in Debt and Subsequent Sale of

SAN DIEGO, May 8 /PRNewswire-FirstCall/ -- Path 1 Network Technologies Inc. (BULLETIN BOARD: PNOTE) announced today that it will grant to Laurus Master Fund, Ltd. ("Laurus") peaceful possession of the collateral secured under Securities Purchase Agreements dated December 6, 2005 and April 25, 2006 in exchange for full satisfaction of $3.4 million in debt obligations.

It is the understanding of Path 1 that Laurus will enter into an agreement with IP Video Networks, Inc. ("IPVN") in which IPVN will acquire Path 1 assets and hire personnel with the intent to continue to support and expand Path 1 customer base and product lines. As part of this agreement, Laurus will take approximately a 27% equity stake in IPVN, also owned by Barton Schade and Michael Chen, recent employees of Path 1. The transaction is expected to close immediately following expiration of the 10-day statutory waiting period imposed by Article 9 of the UCC.

Immediately following the transfer of the collateral, the Company will discontinue all operations.

About Path 1 Network Technologies Inc.

Path 1 Network Technologies Inc. is the pioneer and leading provider of video transport products that enable the conversion and distribution of real-time, broadcast-quality video over Internet Protocol (IP) through public and private networks. From the delivery of live MPEG-2, MPEG-4, and VC-1 standard definition (SD) and high definition (HD) broadcasts to video on demand (VOD), Path 1's video infrastructure platforms allow broadcasters, cable, telco, satellite and mobile operators to transmit high-quality point-to-point, multipoint and multiplexed video across town or around the world. To find out more about Path 1 Network Technologies Inc. (BULLETIN BOARD: PNOTE) visit our website at http://www.path1.com/ or call 877/ONE-PATH (663-7284).

SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that we may require future financing, that our products might not achieve customer or market acceptance or that they might not perform as expected, that customer trials might not lead to future sales, that our sales might fluctuate between reporting periods and other risks identified in our annual report on Form 10-K and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and Path 1 undertakes no obligation to update such statements.

IP Video Networks, Inc.; Path 1 Network Technologies Inc.

CONTACT: Investors, Jeremy Ferrell of Path 1 Network Technologies Inc.,
+1-858-450-4220, jeremy.ferrell@path1.com

Web site: http://www.path1.com/

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.