MeetMe also announced today an executive transition. Geoff Cook, currently Chief Operating Officer and President of the Consumer Internet Division of MeetMe, will become the Company's Chief Executive Officer effective Monday, March 11, 2013, and John Abbott will become the Company's non-Executive Chairman of the Board.
Geoff Cook has served as MeetMe's Chief Operating Officer, President of the Consumer Internet Division and a director since the merger of the Company with myYearbook in 2011. Prior to joining the Company, Cook was the Chief Executive Officer and co-founder of Insider Guides, Inc., the parent company of myYearbook. During his six-year tenure there, Mr. Cook helped raise $20 million and grew myYearbook to profitability and more than $30 million in revenue with more than 100 employees. Previously, Mr. Cook founded EssayEdge and ResumeEdge while a student at Harvard University in 1997 and sold it to The Thomson Corporation in 2002.
"With the merger integration now complete as of this most recent quarter and the former myYearbook platform now the focus of the business, now is the right time to hand the reins to our Chief Operating Officer and President, Geoff Cook," said Abbott. "Geoff is a pioneer in social discovery and a product visionary, who capitalized on the promise of mobile early, and who I believe is best equipped to lead MeetMe within a mobile-first world."
"I am eager to tackle the opportunities and challenges that lie ahead and enthusiastic at the chance to continue to work with our talented team to revolutionize the way people meet in a mobile-first world," noted Cook. "I am excited to seize upon our great momentum in mobile and our global footprint to drive continued growth and long-term shareholder value."
On March 5, 2013, the Company, Altos Hornos de Mexico S.A.B. de C.V. ("AHMSA") and Mexicans and Americans Trading Together, Inc. ("MATT") entered into an agreement to offset the Company's $5,000,000 Subordinated Promissory Note dated January 25, 2008 (the "Note") with approximately $6 million of accounts receivable that MATT and AHMSA owed to the Company (the "Receivable"). As of March 5, 2013, $6,254,178 in principal and accrued interest was outstanding under the Note, and the Receivable had a balance of $6,025,828 plus interest of $222,446 from the agreement. MATT exercised warrants dated October 17, 2006 at an exercise price of $2.75 per share (the "MATT Warrants") to purchase 2,147 shares of common stock using the amount by which the outstanding principal and accrued interest under the Note exceeded the amount of the Receivable. As a result of these transactions, both the Note and the Receivable have been deemed fully satisfied. In connection therewith, MATT has agreed to exercise or forfeit the MATT Warrants with an aggregate exercise price of $2,000,000 over an eleven-month period beginning in March 2013. The Receivable represented approximately 38.2% of our accounts receivable and approximately 50% of our working capital as of December 31, 2012.
On March 5, 2013 the Company and Richard L. Scott Investments, LLC ("RSI") entered into an agreement pursuant to which RSI exercised warrants dated as of March 21, 2006 to purchase one million shares of common stock at an exercise price of $2.75 per share (the "RSI Warrants"). RSI paid the exercise price of the RSI Warrants by offsetting that same amount under the Company's $2,000,000 Subordinated Promissory Note dated January 25, 2008 (the "Note"). The Company paid RSI $107,504 in cash, which represented the difference between the aggregate exercise price of the RSI Warrants of $2,750,000, and the total amount of principal and interest under the Note that would have accrued through the 2016 due date of $2,857,504. As a result of these transactions, the RSI Warrants have been fully exercised and are of no further force or effect, and the Note has been deemed fully satisfied.
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