TORONTO and NEW YORK, July 15, 2010 /PRNewswire/ -- Intertainment Media Inc. (Intertainment), a leading provider of private label social media and engagement technologies, is pleased to announce that it has entered into an agreement with GEM Global Yield Fund Limited (GEM) for a $5.0 million CDN equity line of credit. Funds raised through this facility will be used for the enhancement of existing and development of new product lines and general working capital purposes.
The Company will control the timing and maximum amount of any draw downs under this facility, and has the right, not the obligation, to draw down on available funds. The Company has the option within the terms of the agreement, to draw down funds in tranches by requiring GEM to subscribe for the Company's common shares at a 10 percent discount to the average closing price of the Company's common shares over a 15 day trading period following the draw down notice date. GEM will hold freely trading shares of the Company through a share lending facility provided by current shareholders. As part of the equity credit line transaction, the Company has agreed to issue 7.5 million warrants to GEM in conjunction with the first draw down tranche. The warrants will be exercisable for a period of three years from the closing notice date at an exercise price of $0.20 CDN per share.
Investment decisions by GEM are based, in large part, on funding sustainable growth companies over the long term. GEM recognized the long term value of Intertainment's highly developed suite of social media and engagement technologies as well as our brand client and industry relationships including Intertainment's Global Agency partnership with Microsoft Corp., said David Lucatch, CEO of Intertainment Media Inc.
About Intertainment Media inc.: 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 Media owns a number of key properties including 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 Toronto Venture Exchange under the symbol INT.
About GEM Group
Global Emerging Markets Group, www.gemgroup.ch was founded in 1991. GEM is a USD 3.4 billion Swiss-based investment group having completed 285 transactions in 60 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world. GEM's funds include: CITIC/GEM Fund; VC Bank/GEM Mena Fund; GEM Global Yield Fund; GEM India and Banco Pine/GEM Funds.
Contact: Warren P. Baker, III - wbaker@gemny.com / +1(212)-582-3400
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. This news release may contain certain forward- looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at http://www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
This release may contain forward looking statements within the meaning of the safe harbor provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. Intertainment Media Inc. does not assume any obligation to update any forward looking information contained in this news release.
For further information: For Intertainment Media Inc.: David Lucatch, CEO, +1-800-395-9943, info@intertainmentmedia.com, http://www.intertainmentmedia.com; World Market Media, Editor's Desk, +1-877-801-8408 Ext. 307, editor@worldmarketmedia.com, http://www.worldmarketmedia.com
SOURCE: Intertainment Media Inc.
CONTACT: For further information: For Intertainment Media Inc.: DavidLucatch, CEO, +1-800-395-9943, info@intertainmentmedia.com; World MarketMedia, Editors Desk, +1-877-801-8408 Ext. 307, editor@worldmarketmedia.com
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