Qumu Corporation (NASDAQ:QUMU) Files An 8-K Regulation FD Disclosure

Qumu Corporation (NASDAQ:QUMU) Files An 8-K Regulation FD Disclosure
ITEM 7.01REGULATION FD DISCLOSURE.

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As previously reported, Qumu Corporation (the “Company”) and other shareholders of BriefCam, Ltd. (“BriefCam”) entered into a stock purchase agreement on May 7, 2018 with Canon Inc. (“Canon”) by which Canon agreed to acquire BriefCam.

On July 3, 2018, BriefCam announced that Canon had completed its acquisition of BriefCam.

On July 6, 2018, the Company received approximately $9,678,000 from the closing proceeds in payment for its shares of BriefCam. The Company’s originally acquired its shares of BriefCam for $3,144,000. The Company expects to incur approximately $40,000 in federal and state tax on the gain on the sale of its shares of BriefCam, resulting in estimated net proceeds of approximately $9,638,000. The Company may receive up to $183,000 in additional proceeds, or such lesser amount as may remain after purchase price adjustments and indemnity claims, over a period of up to three years following the closing.

As of June 30, 2018, the Company had outstanding $10,414,000 in principal and interest outstanding under the term loan credit agreement dated January 12, 2018 with ESW Holdings, Inc. Under the term loan credit agreement, a voluntary prepayment by the Company of the loan to ESW Holdings Inc. using proceeds received in connection with the disposition of the Company’s investment in BriefCam will not trigger a prepayment fee.

The Company’s Board of Directors is evaluating the use of the net proceeds from the sale of the Company’s BriefCam shares to optimize the Company’s capital structure.

Forward-Looking Statements

This report contains forward-looking statements concerning the expected tax effects of the Company’s disposition of its investment in BriefCam and the evaluation by the Board of Directors of the use of the net proceeds from the disposition.Forward-looking statements generally may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” or the negative of such terms or other variations on such terms or comparable terminology.These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the possibility that the tax effects will be different than expected resulting in lower net proceeds to the Company than expected. These factors are not intended to be anall-encompassinglist of risks and uncertainties. The factors described in the context of such forward-looking statements in this release could cause actual results to differ materially from those expressed in or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as at the date hereof. The Company expressly disclaims any obligation to update or correct these forward-looking statements except as required by law.


About Qumu Corporation (NASDAQ:QUMU)

Qumu Corporation (Qumu) is an enterprise video content management software company. The Company is engaged in providing tools businesses need to create, manage, secure, deliver and measure their videos. The Company operates through the enterprise video content management software business segment. Its video content management software solutions allow organizations to create, capture, organize and deliver content across the extended enterprise to a range of end points, including mobile devices and thick or thin clients. Qumu’s video platform supports both live and on-demand streaming. The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a term software license or a cloud-hosted software as a service (SaaS). Qumu Capture Studio is a portable software-enabled device that records, edits and publishes video and presentation content.

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