TORONTO, CANADA, January 29, 2009 - Intertainment Media Inc. (“Intertainment” or the “Company”) (TSXV:INT) announced today that, further to a press release issued December 3, 2008, following consultations with the TSX Venture Exchange, the Company has revised the terms of the offering of debentures by its wholly owned subsidiary, Itibiti Systems Inc. (“Itibiti”).
The Company will look to complete a brokered private placement of convertible debentures (“Debentures”) of up to $3 Million CDN of Itibiti (the “Offering”). The Offering will consist of convertible debentures ("Debentures") at a subscription price of $50,000 CDN per Debenture which, unless otherwise authorized, will be payable at 15% interest per year, paid semi-annually. Each Debenture will be convertible into the Debenture holder’s choice of (a) units of the Company ("Units") at a conversion price of $0.10 per Unit with each Unit consisting of one common share and one common share purchase warrant ("Warrant"), such Warrant having an exercise price of $0.10 and being valid for two (2) years from the date of conversion of the debenture into shares of Intertainment Media Inc., or (b) common shares of Itibiti (“Itibiti Shares”) upon the occurrence of a Liquidity Event (as defined below) whereby each $0.70 of principal amount outstanding under the Debentures can be converted into one Itibiti Share.
A Liquidity Event is the occurrence of an event whereby Itibiti is listed for trading on a public stock exchange or whereby substantially all of the assets or securities of Itibiti are sold or amalgamated.
Itibiti Systems has completed its beta testing and has been approved for its final live launch platform with a major technology company and international brands. There has been significant interest from the advertising and investment community in Itibiti Systems as it enables major brands to create a stronger relationship with its customers all within the computer desktop environment,” said David Lucatch, President of Itibiti Systems Inc. and CEO of Intertainment Media Inc.
The Offering will be led by Toronto based D&D Securities Company. The Company will pay eligible parties 8% commission in cash and provide an option to purchase up to 8% of the Debentures sold at the subscription price of the Offering for a period of 18 months from the date of completion of the Offering.
The capital raised will be used to further the completion and live launch of Itibiti System’s voice powered social networking platform, for strategic growth opportunities and for general corporate purposes. The Company may choose to issue fewer Debentures than the maximum.
About Intertainment’s Itibiti Systems
Intertainment’s Itibiti Systems platform is a proprietary, social networking, multimedia and communications environment that can be installed directly on a user’s computer desktop. The Itibiti platforms provides clients with custom branding, loyalty and revenue opportunities allowing them to extend their “Brand Experience” to the user’s desktop. Key features of the Itibiti include IP Telephony, video/multimedia on demand, instant messaging, SMS, integrated in a feature rich interface that includes a mini web browser, desktop telephone and chat system which can be utilized to create active links to the affinity partners web pages, providing information and outside services and a complete advertising and marketing platform for revenue generation. For a full demonstration of the Itibiti platform, please visit www.intertainmentmedia.com/itibiti/p...
About Intertainment
Intertainment Media Inc. (www.intertainmentmedia.com) is a conventional and new media company with an experienced and innovative team of professionals focused on delivering leading edge technology and marketing solutions.
Intertainment develops and invests in strategic programs that enable clients to increase their branding and loyalty relationships with their consumers while focusing on increased revenue generation. Intertainment owns, operates and invests in high value content, traffic management, advertising and social networking solutions including, Eye Rock Digital (www.eyerockdigital.com) No Good TV (www.ngtv.com), Trooker Inc. (www.trooker.com), and Itibiti Systems (www.intertainmentmedia.com/itibiti/p... ). Intertainment Media Inc. is headquartered in Richmond Hill, Ontario, Canada. The company is listed on the Toronto Venture Exchange (symbol: INT).
This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not undertake any duty to update any forward-looking statements.
Corporate Inquiries:
David Lucatch, CEO
905-763-3510
Investor Communications:
Buchalter Consulting
1-866-631-6537
Stan.Buchalter@BuchalterConsulting.ca
Online Investor Relations Hub:
AGORACOM
INT@Agoracom.com
www.agoracom.com/IR/intertainment
