WorldGate Communications said its shareholders approved a proposed sale of the company's interactive television assets to TVGateway LLC.
WorldGate will receive $2.4 million in cash, a sum that makes up the balance of a $3 million deal originally agreed to by the two parties. WorldGate said it will not implement a proposed 20-for-1 reverse stock split at this time.
WorldGate said it will use the net proceeds to fund operations, development and distribution of its "Ojo" videophone.
WorldGate plans to make a prototype of the product available in the coming weeks, WorldGate Chairman and CEO Hal Krisbergh said.
The product, which will rely on high-speed DSL and cable modem connections, will go for about $300 retail. Krisbergh envisions a lower price point when it's offered in partnership with broadband service operators. The company is currently seeking patent protection for the technology that makes Ojo go.