A month after taking over Video Jukebox Network Inc., key investor J. Patrick Michaels Jr. is starting preliminary discussions with several major potential strategic partners and/or equity partners.
“While it is too early to comment, these parties could potentially bring more than money, whether it be sophisticated technology or substantial music industry connections,” Michaels said.
Michaels, who stepped in as CEO and president last month, also confirmed that VJN Partners, a partnership that controls 50.5% of the company’s outstanding stock, is in the process of dissolving, with the members of the partnership “free to go their own way.”
He said CEA Investors Partnership II Ltd., one of the members of VJN Partners , would look to converting its share of VJN Partners’ loan to the company into equity. Exec added that he did not know what the other partners would do with respect to their share of the $ 3 million loan VJN Partners had made to the company.
Michaels also said that an executive search committee was looking for both a CEO and chief operating officer. Separately, as previously reported, four new directors, Joseph V. Furfaro, Steven A. Peters, Joel S. Rudich and Leonard J. Sokolow, have been added to the company’s five-member board. Furfaro is a VP of Moran & Associates, which has a 17% stake in VJN.