Wednesday, July 11, 2007

Digital Music Group, The Orchard Merge

Sacramento-based Digital Music Group and New York-based The Orchard said today that they have agreed to merge. The two firms, which both provide digital distribution of music and video, will become The Orchard and be headed by Greg Scholl, current Orchard President and CEO. The company will continue to trade on the NASDAQ as DMGI. According to DMGI, it will issue 9,064,941 shares of its common stock, and 4,488,330 shares of convertible preferred stock to shareholders of The Orchard, which is owned by Dimensional Associates.