SAN FRANCISCO, Aug. 8, 2017 /CNW/ -- Frankly Inc.(TSX VENTURE: TLK), a leader in transforming local TV broadcasters and media companies by enabling them to publish and monetize their digital content across multiple platforms, has temporarily suspended its United States public offering due to the commencement of a legal action by Gannaway Entertainment, Inc. ("GEI"), Albert C. Gannaway III, and Samantha Gannaway in United States District Court for the Northern District of California against Frankly, its CEO, CFO/COO and others, alleging violations of United States securities laws, fraud and breach of fiduciary duties. On August 7, 2017, Frankly filed a Form 10 with the United States Securities and Exchange Commission to register its common shares in the United States under Section 12(g) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Upon effectiveness of the Form 10, the Company will become a U.S. reporting company, subject to the reporting requirements of the Exchange Act.
"It is unfortunate that Mr. Gannaway has apparently timed his baseless filing to maximize damage to the Company and its shareholders," said Frankly's CEO, Steve Chung. "Nevertheless, we will deal swiftly and forcefully to have these claims dismissed and ensure Mr. Gannaway and his related parties are held fully accountable for their actions. In the meantime, we will not let this nuisance distract us from continuing to execute on our growth plan and maximizing value for both our customers and shareholders."
Frankly (TSX VENTURE: TLK) builds an integrated software platform for brands and media companies to create, distribute, analyze and monetize their content across all of their digital properties on web, mobile and TV. Its customers include NBC, ABC, CBS and FOX affiliates. Collectively, Frankly reaches nearly 80 million monthly users in the United States. The company is headquartered in San Francisco with a major office in New York. To learn more, visit www.franklyinc.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice Regarding Forward-Looking Statements
This release includes forward-looking statements regarding Frankly and its business. Forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the parties including, without limitation, statements relating to the registration of the Company's common shares, the Complaint, the Company's intention to defend itself and the expected outcome of the Complaint. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Frankly undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Frankly Inc.