TORONTO, CANADA--(Sept. 2, 2009) - Intertainment Media Inc. ("Intertainment" or the "Corporation") (TSX VENTURE:INT) is pleased to announce that it has completed a non-brokered private placement of units (the "Units") for gross proceeds of $580,560.00 (the "Offering"). Each Unit was issued for $0.15 per Unit and is comprised of one common share of the Corporation ("Common Share") and one Common Share purchase warrant ("Warrant"), with each Warrant having an exercise price of $0.20 and a term ending on the date that is 24 months after the date of issuance of the Warrant.
Dundee Securities of Toronto was the participant in the placement and received a 7% commission in cash and options to purchase up to 7% of the units sold for a period of 18 months from the date of completion of the Offering.
The proceeds will be used to expand the launch programs of itiBiti and for general working capital purposes. After giving effect to the Offering, the Corporation now has 93,659,468 Common Shares issued and outstanding.
Itibiti Systems Inc., subject to necessary approvals, will also offer up to $2.75 Million in Convertible Debentures. The convertible debentures ("Debentures") of Itibiti Systems consist of convertible debentures ("Debentures") at a subscription price of $50,000 CDN per Debenture which, unless otherwise authorized, will be payable at 12% interest per year, paid semi-annually. Each Debenture will be convertible into the Debenture holder's choice of (a) units of Intertainment ("Units") at a conversion price of $0.175 per Unit with each Unit consisting of one common share and one common share purchase warrant ("Warrant"), such Warrant having an exercise price of $0.22 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 Systems ("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 Systems is listed for trading on a public stock exchange or whereby substantially all of the assets or securities of Itibiti are sold or amalgamated.
About Itibiti Systems Inc.
Itibiti Systems' platform, itiBiti, is a revolutionary, instant revenue driven, Rich Internet Application (RIA) providing entertainment, communications and social networking initiatives displayed directly onto a user's computer desktop - providing major global brands with the unprecedented ability to power their marketing efforts within a unique, private label loyalty and revenue platform. itiBiti offers users a rich suite of services in combination with brand client initiatives, and the Microsoft Windows Live platform. Users have the ability to access itiBiti using their Windows Live ID, giving them direct access to a number of Microsoft services. Itibiti Systems is currently in the planning stage for a mobile version of its product offerings.
About Intertainment
Intertainment Media Inc. (www.intertainmentmedia.com) is a Rich Media Applications leader, focused on delivering leading edge technology and marketing solutions enabling clients to power enhanced branding, loyalty initiatives and consumer engagement. Selected as a Microsoft Global Agency Initiative partner, Intertainment has joined an elite group of interactive agencies worldwide that Microsoft recommends to its Partners and Customers.
Additionally, 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), View2gether Inc. (www.view2gether.com), Itibiti Systems Inc. (www.itibitisystems.com) and Magnum Fine Commercial Printing Limited (www.magnumprinting.com). Headquartered in Richmond Hill, Ontario, Canada Intertainment Media Inc. is listed on the Toronto Venture Exchange (TSX VENTURE: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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Intertainment Media Inc.
Corporate Inquiries:
David Lucatch
CEO
(905) 763-3510
or
Intertainment Media Inc.
Investor Communications:
Buchalter Consulting
1-866-631-6537
Stan.Buchalter@BuchalterConsulting.ca
www.intertainmentmedia.com
or
AGORACOM
Online Investor Relations Hub:
INT@Agoracom.com
www.agoracom.com/IR/intertainment
