Media Equities members get $5.5 mil private placement
New Star Media Inc. has completed a private placement of $5.5 million of its common shares at $1.438 each to Terrence Elkes, Kenneth Gorman and Ronald Lightstone.
Elkes, Gorman and Lightstone are members of Media Equities Intl., a partnership that owns about 42% of New Star common stock. Lightstone is New Star’s president and chief executive.
In a press release Wednesday, New Star Media said it named Elkes chairman and Gorman vice chairman, filling posts that had been vacant since June 1997.
Both Elkes and Gorman had been directors of New Star since 1997.
Elkes and Gorman are managing directors and co-owners of Apollo Partners L.L.C., which acquires companies in the media, communications and entertainment and broadcasting fields.
New Star sold its office building for about $4.2 million and expects to net a cash surplus of about $2.3 million after payment of the existing mortgage.
The completion of the private placement enables the company to proceed with its plans to grow its audio book publishing and television programming production businesses.