Live Current Media Inc., parent of Perfume.com, has raised close to $4 million in 2009 through sales of domain names, most recently last week with the sale of Cricket.com for $1.75 million.
Under the agreement, the buyer, Global Cricket Ventures Mauritius, a joint venture of Live Current Media and NetLinkBlue-a technology and consulting firm based in Dubai--has agreed to hire Mark Melville, Live Current’s president. The transaction also will cover severance costs related to the termination of some Live Current employees associated with Cricket.com’s operations.
At the time of Live Current’s first quarter earnings report in May, the company had sales of $1.72 million, down 5.5% from $1.82 million the prior year period. The filing also noted that the company’s continuation was “in substantial doubt.” The company has not yet filed its second quarter earnings report.
The recent transactions will help Live Current to “support growth initiatives associated with the recently launched Karate.com and to implement a new strategy for Perfume.com,” says CEO Geoff Hampson. Perfume.com is No. 496 in the Internet Retailer Top 500 Guide.
The sale of the Cricket.com domain name and web site included rights granted under a contract with the Indian Premier League, a professional cricket organization. In return, Live Current receives $1 million in cash to be paid quarterly in equal installments of $250,000; the assumption by Global Cricket Ventures of a liability totaling $750,000 related to past obligations to the Board of Control for Cricket in India; and the assumption by Global Cricket Ventures Mauritius of salary and employment expenses related to the Live Current employees associated with Cricket.com. The expenses include Melville’s salary, the payment of up to $60,000 in severance costs resulting from the termination of other Cricket.com-Related employees and a monthly payment of $2,500 for general overhead expenses. The expenses will be paid for a period of up to six months.
Live Current also recently announced it renegotiated the terms of the March 2008 merger with Auctomatic, an e-commerce auction software provider. Under the new arrangement Live Current says it will issue promissory notes to 12 Auctomatic shareholders who are owed a total of $424,934. The notes will allow the company to pay the amounts due over 12 months. Of the remaining $375,066 not covered by the notes, $334,224 is due to two employees who were terminated as a result of the sale of Cricket.com to Global Cricket Ventures Mauritius.
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