Today's News |
SoMedia Closes $800,000 Convertible Debenture Private Placement
Wednesday, March 4, 2015Company Profile | Follow Company
Vancouver, BC, March 4, 2015--(T-Net)--SoMedia Networks Inc. (VID.V), a pioneer of scalable video production solutions, announced today that is has closed its non-brokered private placement of secured convertible debentures in the principal amount of CDN$800,000 as announced earlier on February 23, 2015.
Each $1,000 in the principal amount of a Debenture issued is convertible into a Unit, each Unit consisting of 8,332 common shares and 4,166 share purchase warrants, whereby each warrant will be exercisable at a price of $0.20 per share and will expire two years after the date of the issuance of the warrant.
The debentureholder (the "Holder") may convert the Debenture at any time. The Debenture will mature 24 months from the date of issuance and will bear interest at 12% per annum, compounded monthly with interest accruing and payable in full on the maturity date.
Each Debenture will be secured by granting the Holder a security interest over all of the Company's present and after-acquired property and assets as described in the Debenture. All security interests granted to the Holders pursuant to this Private Placement will rank pari passu.
In connection with the Private Placement, the Company issued a total of 533,248 units as fees to those who introduced the Company to subscribers of the Private Placement. Each unit consists of one common share and one half share purchase warrant, with each of these warrants entitling the holder to purchase one common share of the Company at a price of $0.20 per share until March 2, 2017.
All securities issued in connection with the Private Placement will be subject to a hold period of four months plus one day from the date of the issuance of each securities.
The proceeds from the Debentures are expected to be used for working capital purposes.
About SoMedia Networks
SoMedia Networks, the creator of Scalable Video, has reengineered how businesses access video content creation, production and deployment. The cloud-based SoMedia Platform allows businesses, brands and media to easily order the production of custom video content at scale and volume, anywhere, on demand, with rapid turnaround, and at a fraction of current costs.
SoMedia provides Scalable Video as an integrated solution to corporate partners, as a resale solution through thousands of web marketing firms and directly to digital agencies and millions of SMBs across North America. To learn more visit: www.somedia.net.
Contact:
Company:
SoMedia Networks
George Fleming, 604-683-5510
Chairman & co-CEO
gfleming@somedia.net
Canadian Investors:
SoMedia Networks
Greg Werbowski, 604-683-5510 ext. 590
gwerbowski@somedia.net
Media:
Hotwire PR
Annette Leach, 415-840-2790
somedia@hotwirepr.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.