New York – YOU On Demand Holdings, Inc., the first national Video On Demand (VOD) platform in China, has announced that C Media Limited, a leading China-based mobile video service provider, has raised its aggregate strategic investment in YOU On Demand. C Media has increased its present stake to US$6 million with a US$2 million Convertible Bridge Note financing. 

The Bridge Note will convert to Series E Convertible Preferred Stock upon consummation of the proposed Phase 2 investment and would bring the total C Media Phase 2 investment in YOU On Demand to US$12 million (the Bridge Note conversion plus an additional issuance and purchase of US$10 million Series E Preferred Stock). 

In addition, C Media and YOU On Demand have agreed to extend the Phase 2 investment deadline from October 31, 2013 to December 4, 2013. The Phase 2 purchase price remains $1.75 per share for Series E Preferred Stock and C Media has granted the Company the one-month extension for executing definitive documentation and satisfying the original closing conditions, as set forth in their agreement.

In early July 2013, C Media made an initial US $4 million investment in YOU On Demand, acquiring approximately 2.3 million shares of 4% Series D Convertible Preferred Stock at $1.75 per share. Series D shares are convertible on a one-for-one basis for YOD common shares. With the consummation of the Phase 2 investment, the total C Media investment including Phase 1, conversion of the Bridge Note and Phase 2, if concluded, would total $16 million USD.

Xuesong Song, co-founder, Chairman and CEO of C Media stated, “This increased investment in YOU On Demand further underscores C Media’s growing confidence in the YOU On Demand team and represents what we believe is an exciting opportunity to jointly capitalise on China’s fast-growing mobile and digital cable entertainment space together with a truly innovative partner. Based on their satisfaction of certain additional closing conditions that we anticipate will be completed prior to the December deadline, we expect to further expand upon our current $6 million investment in YOU On Demand later this year.”

Shane McMahon, Chairman of YOU On Demand, stated, “We are extremely pleased with the working relationship we have developed with C Media over the past several months and appreciate their continued support and confidence. We look forward to making additional progress with the execution of our business plan, and specifically doing so with our C Media partnership.”

YOU On Demand has content distribution agreements in place with many of Hollywood’s top studios including Disney Media Distribution, Paramount Pictures, NBC Universal, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers.