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Intertainment Announces Filing of Preliminary Short Form Prospectus and Unit Offering

TORONTO, CANADA, Aug 17, 2011 (Marketwire via COMTEX News Network) --

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) is pleased to announce that it has filed a preliminary short form prospectus for distribution of the common shares ("Common Shares") and common share purchase warrants ("Warrants") issuable on the exercise of the 19,760,271 special warrants ("Special Warrants") issued at a price of $1.20 per Special Warrant on May 13, 2011 (the "SW Offering") and with respect to the distribution of up to $20,000,000 of units ("Units") of the Company (the "Unit Offering").

The Company currently has approximately $23,000,000 in cash and cash equivalents available for working capital and strategic purposes. Any additional funding will be used primarily for strategic acquisitions and marketing activities to increase revenue opportunities.

The Company has received a continued term sheet for the entire Unit Offering from a US strategic investor with extensive opportunities in the US and Asia for Ortsbo and Intertainment's other programs.

The previously announced acquisition of SaaS Technologies Inc. is not affected by the Unit Offering, as this acquisition has been negotiated, subject to all necessary approvals, as a combination of cash and Common Shares over a period of 2 years.

Should the Company elect to proceed with the distribution of additional Units, the pricing of the Units will be determined by the Company at an expected premium to the market prior to filing the final prospectus in connection with the Unit Offering. Each Unit will consist of one Common Share and one-half of one Warrant. Each whole Warrant shall entitle the holder thereof to purchase one Common Share at a price per Common Share to be determined at the time of pricing of the Units. The Warrants will have a term expiring on the date which is 24 months from the completion of the Unit Offering, subject to acceleration of the exercise period in certain circumstances.

A preliminary short form prospectus containing important information relating to the Unit Offering and SW Offering has been filed with the securities commissions or similar authorities in certain jurisdictions of Canada. Copies of the preliminary short form prospectus may be obtained from Mr. David Lucatch, President and Chief Executive Officer of the Company, at 30 West Beaver Creek Road, Unit 111, Richmond Hill, Ontario L4B 3K1, telephone (905) 763-3510, and is also available electronically at www.sedar.com.

Intertainment is also pleased to announce that it has retained, subject to TSX Venture Exchange acceptance, Profinnotiv AG ("Profinnotiv") to provide the Company with investor relations and public relations services in the European market for the next 12 months at an approximate cost of $185,000. Options to purchase common shares of the Company may be granted to Profinnotiv in the future. Profinnotiv will leverage extensive relationships within the professional investment community to expand Intertainment's profile as well as to communicate with existing Intertainment stakeholders in Europe. Based in Switzerland, Profinnotiv is a highly specialized provider of global financial services with a long history in Europe with strong investor support.

About Intertainment - www.intertainmentmedia.com

Connecting people with brands, Intertainment Media Inc. 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.

Intertainment owns a number of key properties including Ortsbo, Ad Taffy, itiBiti and Magnum Fine Commercial Printing Limited.

Headquartered in Richmond Hill, ON, with offices in New York, Los Angeles and San Mateo, CA, Intertainment Media Inc. is listed on the TSX Venture Exchange under the symbol "INT", in the US under the symbol "ITMTF" and on the Frankfurt Exchange under the symbol "I4T".

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The offered securities mentioned in this press release will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

This new release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Forward-Looking Information

This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law including statements relating to the Unit Offering and SW Offering.

Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. 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. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.

SOURCE: Intertainment Media Inc.

For Ortsbo / Intertainment Media Inc.: David Lucatch CEO 800-395-9943 [email protected] www.ortsbo.com or www.intertainmentmedia.com Public Relations / Media Inquiries: SS / PR [email protected] www.sspr.com

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