Company officers subscribe for C$1.23 million of non-brokered deal
By Marisa Wong
Madison, Wis., May 13 - Intertainment Media Inc. announced that it has completed the first tranche of its previously announced non-brokered private placement of special warrants. The company raised C$23.71 million in this first closing.
The company issued 19,760,271 special warrants at a price of C$1.20 each. Each special warrant is exchangeable for one common share of Intertainment and one-half of a common share purchase warrant. The price of the special warrants represents a 15.38% premium over the May 12 closing share price of C$1.04.
The special warrants will expire on the earlier of the date of issuance of a receipt qualifying the securities issuable upon exchange of the special warrants and Sept. 14.
Each whole warrant will entitle a holder to purchase an additional common share for C$2.00. The whole warrants are exercisable until May 13, 2013. The warrant strike price represents a 92.31% premium to the May 12 closing share price.
If Intertainment shares close at C$4.00 or higher for 15 consecutive trading days at any time after Sept. 14, the company may accelerate the expiration of the warrants, and they would then expire 30 day after the company delivers a notice to holders.
Proceeds will be used to accelerate the company's core new media offering, for potential acquisition opportunities and for working capital.
Directors and officers of Intertainment acquired 1,024,090 special warrants for proceeds of C$1,228,908 in the first tranche.
"This first tranche comes at a very strategic time for the company, as its products and program have fully commercialized. Today's closing shows the strength of our investor's commitment to Intertainment," David Lucatch, chief executive officer of Intertainment, said in a news release.
Lucatch said that Intertainment received over C$4.7 million in excess commitments from the initially announced first tranche of C$28 million, but the company chose to close only on the C$23.71 million due to a strong commitment from a U.S.-based fund to close an additional C$20 million tranche, should Intertainment elect to do so.
Intertainment is a Toronto-based conventional and new media company.
| Issuer: | Intertainment Media Inc.
|
| Issue: | Special warrants
|
| Amount: | C$23,712,326.60
|
| Special warrants: | 19,760,271, exchangeable for one common share and one-half of a share purchase warrant
|
| Special warrants price: | C$1.20
|
| Special warrants expiration: | The earlier of the date of issuance of a receipt qualifying the securities issuable upon exchange of the special warrants and Sept. 14
|
| Warrants: | One-half of a warrant per special warrant
|
| Warrant expiration: | May 13, 2013, unless accelerated
|
| Warrant strike price: | C$2.00
|
| Agent: | Non-brokered
|
| Settlement date: | May 13
|
| Stock symbol: | TSX Venture: INT
|
| Stock price: | C$1.04 at close May 12
|
| Market capitalization: | C$159.38 million
|
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