Business
Section Rouge Media announces an agreement with Research Capital Corporation
Section Rouge Media announces an agreement with Research Capital Corporation.
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[{"type":"text","content":"\n\n\n\n\nTSX VENTURE EXCHANGE: SRO\n\nMONTREAL, Jan. 3 /CNW Telbec/ - Section Rouge Media Inc. (TSX Venture\nExchange: SRO) (\"Section Rouge\") announces today that on December 23, 2005, it\nhas signed an Engagement Letter with Research Capital Corporation (\"Research\")\nto act as agent in connection with a private placement of common shares to\nraise a minimum of $ 2.5 million and a maximum of $ 4 million (\"Placement\"),\nas announced by Section Rouge on October 13, 2005. The Placement consists of a\nminimum of 8,333,333 common shares of Section Rouge (\"Shares\") at a price of\n$0.30 per Share and a maximum of 13,333,333 Shares. Research will be granted a\nfifteen percent (15%) over-allotment option in connection with the Placement.\nThe over-allotment option will expire sixty (60) days after Closing of the\nPlacement.\nSection Rouge will pay Research a cash commission of ten percent (10%) of\nthe gross proceeds received from the Placement, except for subscriptions from\nthe Section Rouge's President's List. Section Rouge agrees to pay Research a\ncash commission of seven and one-half percent (7.5%) on subscriptions from the\nPresident's List, which will not exceed $1,500,000 in total subscriptions.\nIn addition, Research will receive an option entitling it to purchase up\nto that number of Broker Warrants as is equal to 10% of the Placement sold\nunder the Offering for 18 months from the Closing at a price of $0.30 per\nShare. Upon Closing of the Placement, Section Rouge will pay a corporate\nfinance fee of $25,000 (plus GST) to Research.\nThe proceeds from the offering will be used for the acquisition of Image\nin Media Inc., project development, commercialization of the IPEXTV(TM)\nplatform and for general working capital.\nIt is expected that the closing of the Placement and the acquisition of\nImage in Media Inc. will occur during the first quarter of 2006.\n\nAbout Section Rouge\n\nSection Rouge, a media company founded in October 2001, owns\n30 publications with an annual circulation of over 4.8 million copies of\nweekly newspapers and magazines. The acquisition plan of Section Rouge aims to\nprovide the company a diversity of niches in order to guarantee the company's\nlong-range financial viability and its development capacity in the world of\ncommunications.\n\nCompletion of the transaction is subject to a number ...