UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August 26,
2009
LEGEND
MEDIA, INC.
(Exact
name of Registrant as specified in its charter)
Nevada
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333-138479
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87-0602435
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(State
or Other Jurisdiction
of
Incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
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Room
609, Gehua Tower A
Qinglong
Hutong Building No. 1
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Beijing,
People’s Republic of China
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100007
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(86-10)
8418 7177
(Registrant's
telephone number, including area
code)
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9663
Santa Monica Blvd. #952
Beverly
Hills, CA, 90210
(Former
Name or Former Address, if Changed Since Last
Report)
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Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item 5.02
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Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements
of Certain Officers.
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Resignation
of Director
Effective
as of August 26, 2009, Michael Bonner and Andre Nair resigned from the board of
directors (the “Board”) of Legend Media, Inc. (the "Company"). Both
Mr. Bonner and Mr. Nair are departing for personal reasons that make
it difficult for them to be frequently available in Beijing, China to
effectively serve on the Board. Mr. Bonner and Mr. Nair have served
on the Board since February 13, 2008 and April 10, 2008,
respectively.
Appointment
of New Director
On August
26, 2009, the Board elected Mr. Julien Moulin to the Board to fill a vacancy
created by the resignation of Michael Bonner. Mr. Moulin is a
Managing Partner of Maoming Investment Fund, a large shareholder of the
Company.
Mr.
Moulin, age 31, is co-Founder of Maoming Investment Manager Ltd., an investment
management company investing globally in listed and unlisted companies with a
significant focus on Chinese companies. He has served as Managing Partner of
Maoming Investment Manager Ltd. since February 2006.
From
October 2004 to December 2007, Mr. Moulin was the investment adviser of the
Global China Fund, a European-based investment fund focusing on identifying
undervalued Chinese companies. From September 2003 to June 2004, Mr.
Moulin was an Investment Manager at SKI Capital, a London-based market neutral
fund. From May 2002 to September 2003, Mr. Moulin was an Investment Analyst at
UBS Global Asset Management in charge of the European telecom
sector. Mr. Moulin holds a BA in Economics and Business Sciences from
Sorbonne University and a Master Degree in Asset Management and financial
markets from the University of Paris-Dauphine.
Mr.
Moulin currently does not hold any other directorship in any other
reporting
company. Mr. Moulin has not been appointed to any committee of the
Company's Board.
Resignation
and Appointment of Officers
On November 28, 2008, the Company
entered into and closed an Acquisition Agreement (the "Music Radio Acquisition
Agreement") with Well Chance Investments Limited, its wholly owned subsidiary
and a British Virgin Islands company (the "Subsidiary"), Music Radio Limited, a
British Virgin Islands company ("Music Radio") and Music Radio's two
stockholders, Baochun Ju and Xue Wei (the "Music Radio Shareholders"). Pursuant
to the Music Radio Acquisition Agreement, Jeffrey Dash agreed to resign as the
Company's Chief Executive Officer and the Company agreed to appoint Ju Baochun
as his replacement.
In accordance with the terms of the
Music Radio Acquisition Agreement, effective as of August 26,
2009, Mr. Dash resigned as Chief Executive Officer but will continue to serve as
Chief Financial Officer of the Company. No terms of his current employment are
impacted; however, the Board will be reviewing senior management compensation
and entering into new agreements with key personnel in the near
future.
Effective as of August 26, 2009
and upon Mr. Dash’s resignation as Chief Executive Officer, the Board appointed
Mr. Ju Chairman and Chief Executive Officer of the Company. Mr. Ju,
38, has spent over 11 years working in China’s advertising
industry. Since 2005, Mr. Ju has focused nearly all of his attention
on the radio advertising and airline magazine sectors. Mr. Ju is the
founder and CEO of Music Radio. Mr. Ju is the beneficial owner of a
majority of the Company's issued and outstanding common stock as a result of the
transactions described below. Since 2001, Mr. Ju has been self-employed and has
owned various advertising companies in China, four of which are affiliates of
the Company. Three of the four, Tianjing Yinse Lingdong Advertising Co., Ltd.,
Beijing Mahesi Advertising Co., Ltd and Beijing Yinse Lingdong Advertising Co.,
Ltd., are operating affiliates of the Company, and the fourth, Beijing
Hongtenglianguang Advertising Co., Ltd, provides services to the
Company.
The Board
is preparing a compensation plan for Mr. Ju. At this time, Mr. Ju is not being
compensated as the CEO of the Company, but will be presented a compensation
package in the future.
Related
Party Transactions
Pursuant to the Music Radio Acquisition
Agreement, the Company acquired control over an airline advertising business
(the "Music Radio Acquisition"). As consideration for the Music Radio
Acquisition, the Company issued 5,033,680 shares of its newly-created Series B
Convertible Preferred Stock to Music Radio and two warrants to purchase an
aggregate of 10,000,000 shares of the Company's common stock to Mr. Ju, with an
aggregate value of $55,731,459, all of which is attributable to Mr.
Ju.
As a condition to closing, Legend Media
(Beijing) Information and Technology Co., Ltd., an indirect, wholly owned
subsidiary of the Company incorporated in the People's Republic of China (the
"Consulting Entity"), entered into an Exclusive Technical, Operational, Business
Consulting and Services Agreement (the "Services Agreement") with Beijing
Yinselingdong Advertising Co., Ltd., a company incorporated in the People's
Republic of China and owned by Xue Wei and Ju Bingzhen, the father of Mr. Ju,
and the ultimate target of the Music Radio Acquisition (the "Target"). The
Consulting Entity also entered into an Operating Agreement with the Target, Ju
Bingzhen and Xue Wei to secure the performance of the parties' obligations under
the Services Agreement.
On July 21, 2008, the Company closed a
transaction pursuant to which the Subsidiary purchased 100% of the common stock
of News Radio Limited ("News Radio"), a British Virgin Islands company (the
"News Radio Acquisition"). The News Radio Acquisition occurred pursuant to the
terms of a Share Purchase Agreement (the "News Radio Purchase Agreement") that
the Company entered into on June 4, 2008 with the Subsidiary and Mr. Ju and Xue
Wei, the shareholders of News Radio (the "News Radio Shareholders"). As
consideration for the News Radio Acquisition, the Company issued an aggregate of
104,427 shares of its common stock to the News Radio Shareholders and cash for
an aggregate value of $1,016,206, all of which is attributable to Mr. Ju.
Additionally, the News Radio Shareholders shall receive additional,
performance-based consideration ("Performance-Based Consideration") within 30
days after the determination of the related net revenue and net income for the
years 2008, 2009 and 2010, respectively, based on the net revenues and net
income for such periods of Beijing Maihesi Advertising International Co., Ltd.
(the "Advertising Entity"), a company limited by shares, organized in the
People's Republic of China and wholly owned by the News Radio Shareholders. For
year end 2008, the News Radio Shareholders received no Performance-Based
Consideration.
In connection with the News Radio
Acquisition, CRI News Radio Limited, a Hong Kong company wholly owned by News
Radio, through it subsidiary, the Consulting Entity, entered into an Exclusive
Technical, Operational, Business Consulting and Services Agreement (the "News
Radio Services Agreement") with the Advertising Entity and the News Radio
Shareholders pursuant to which the Consulting Entity became the exclusive
provider of technical, operational, business consulting and other services to
the Advertising Entity in exchange for a service fee and bonus. None of these
amounts are attributable to Mr. Ju nor are monies due him related to this. The
Consulting Entity also entered into an Operating Agreement with the Advertising
Entity and the News Radio Shareholders to secure the performance of the parties'
obligations under the News Radio Service Agreement.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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LEGEND MEDIA,
INC.
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Date: September 8, 2009
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By:
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/s/ BaoChun
Ju
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BaoChun
Ju
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Chief Executive
Officer
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