Abacast Proposes Business Combination With AllDigital Holdings, 公司.

拟议的合并被认为为Abacast和AllDigital Holdings的股东提供最大价值

温哥华,佤邦(2014年1月13日)

以下是Abacast董事会致AllDigital Holdings的一封信的文字记录, 公司. 董事会:

尊敬的董事会成员:

I am writing on behalf of the Board of Directors of Abacast, 公司. ("Abacast") to propose a business combination of Abacast and AllDigital Holdings, 公司. (“AllDigital”). 我们相信，与Abacast的合并将使合并后的公司作为一个更全面的数字媒体平台的一部分，获得更大的长期成功, resulting in greater value and services to your customers. 我们也相信，鉴于贵公司目前的状况和发展轨迹，与AllDigital继续独立运营相比，合并将为贵公司的股东提供一条更现实的价值最大化之路.

Abacast更新

As at least some members of the Board are already well aware, Abacast offers a cloud-based software platform and services to monetize digital media. Our platform now provides an end-to-end monetization ecosystem, 在广告主之间和广告费之间建立一个广告库存和广告费用的市场, 广播公司, 广告网络, and agencies (the "Clarity Marketplace"). 2013年对Abacast来说是一个重要的里程碑，因为我们开始实现Clarity市场的加速增长, completed the transition from and disposal of certain legacy assets and operations, 并真正开始专注于我们的平台和核心音频盈利业务.

Key metrics and other 信息 directly relevant to our business in 2013 are as follows: 25%+ total revenue growth; 200+ customers; 90%+ recurring revenue; 70%+ gross margin; cash flow breakeven; Clarity Marketplace in year 2013 (i.e., 1Q13-4Q13) filled ad impression and gross ad revenue growth 320%+ and 270%+, respectively (all amounts currently estimated and subject to audit as applicable). In light of the initial success of the Clarity Marketplace in 2013 (i.e., yearend traffic levels) and our growing base of recurring business, we are forecasting organic growth of approximately 50% in 2014. 我们最近还完成了董事会的过渡，董事会由大多数外部董事组成.

Abacast有意与AllDigital合并的主要原因是，我们计划将现有的盈利平台扩展到视频领域, leveraging the capabilities and services offered by AllDigital Cloud. Accustream Media estimates that the online video advertising market represented $10.4 billion in 2013, with spending expected to grow to $16.到2015年达到80亿美元. Our monetization platform was architected to support the expansion into video, 然而, 这种扩展涉及到围绕某些视频工作流功能的开发需求，我们相信AllDigital Cloud可以提供这些功能. 除了, 我们正在收到越来越多的咨询从我们现有的客户对视频工作流程, 流媒体, and mobile application capabilities, each a part of your core business, and further confirming the value proposition of a business combination with AllDigital.

AllDigital今天

While Abacast is extremely interested in a business combination with AllDigital, we must emphasize that time is of the essence. 我们越来越关注AllDigital最近的事态发展，以及AllDigital整体上持续缺乏市场渗透和业务进展. A few examples according to your public filings, LinkedIn, and other publicly available 信息 include:

15% revenue growth from 2011-2012.
Over the past 24 months, 80% of your revenue remains concentrated with 3-4 customers.
Your gross margin has remained at 40% since 2011.
Recent departures of multiple personnel, including your COO & 首席财务官和首席技术官.
There has been no announcement about a replacement for your CTO for almost two months.
谁拥有并积极参与您的AllDigital云平台的日常开发?
Recent claims of breach, 损害赔偿, 保留的权利, 等. from the failed Broadcast Internat'l merger.
AllDigital的董事会仍然只由一名外部董事和三名内部高管组成.
我们认为，这些最近的发展以及总体上持续缺乏市场渗透和业务进展正在损害AllDigital股东的利益. 我们坚信，这些趋势可能会冻结你的股东实现AllDigital的长期潜力的任何可能性. AllDigital's future is far from certain as a standalone company, 而且，如果不立即进行业务合并，就不太可能持续下去，就像我们与Abacast提议的那样, or significant and immediate investment.

我们的建议

根据我们的建议, AllDigital将通过反向合并收购Abacast的所有流通股，这样AllDigital将拥有合并后公司38%的普通股，Abacast将拥有合并后公司62%的普通股, excluding options and warrants. Per share consideration, exchange ratios, option pools, 等. will be determined early in the due diligence process.

鉴于AllDigital目前的状况基于公开信息而且你的股票流动性很差, 我们相信，相对于AllDigital的内在价值而言，我们的提议有很大的溢价，并将得到AllDigital大多数独立股东的支持. By whatever financial measure you use -- EBITDA, 自由现金流, 或经营性现金流量, 对于AllDigital的所有股东来说，这一提议代表着一个引人注目的价值实现事件. 如果你的股票有流动性，AllDigital可能会单独交易，这也代表了一个显著的溢价.

我们的提议取决于最终合并协议的谈判，以及我们有机会进行某些确认性尽职调查, 包括对AllDigital为数不多的几个客户进行尽职调查，这些客户代表了你80%的收入. It is also subject to Abacast receiving management control of the combined company, the negotiation of severance payouts to certain executive officers, 根据美国证券交易委员会(SEC)提交的多份指控违规的文件，执行免除责任的措施, 损害赔偿, 保留的权利, 等. associated with the failed Broadcast International merger. 除了, because AllDigital would be acquiring the outstanding stock of Abacast, 我们将为AllDigital提供机会，对Abacast进行适当的有限尽职调查.

拟议交易的完成取决于合并后公司未来营运资本的股权融资.

前进

We are prepared to deliver a draft merger agreement to you, 与你相见, and begin discussions immediately, 给定的时间是至关重要的. Due to AllDigital's status today and the value represented by our proposal, we expect you to engage in a full and immediate review of our proposal, and believe it is appropriate to receive a response on or before January 17th, 2014. Depending on the nature and timing of your response, Abacast reserves the right to call a special meeting of the AllDigital shareholders, 并采取任何其他必要措施，确保你的股东有机会实现我们提议的内在价值. 在此期间, 我们强烈警告您不要采取任何预防措施，试图控制对AllDigital股东最有利的结果.

In light of the significance of this proposal to you, AllDigital的股东, 以及Abacast的股东, as well as the potential for selective disclosure, our intention is to publicly release the text of this letter immediately.

我们相信这个提议代表了一个独特的机会，可以为你们的股东创造巨大的价值, enhance your value proposition and service offering to customers, 让你的员工受益. 我们希望您能分享我们的热情，并期待在1月17日或之前收到您的来信, 2014.

真诚地,

Rob绿色
首席执行官