TSX Venture: EMM
VANCOUVER, Dec. 1 /CNW/ - eMedia Networks (the "Corporation") is pleased to announce that it intends to complete a non-brokered private placement of up to 3,000,000 units, the private placement is expected to close on December 21, 2006. Each unit will be comprised of one common share in the capital of the Corporation ("Common Share") and one-half of one common share purchase warrant ("Warrant") and each unit will be sold for $0.12. Each whole warrant will entitle the holder to acquire one common share at any time until the first anniversary of the closing date at a price of $0.21.
The proceeds of the private placement will be used to repay a portion of the Corporation's equipment debt, to repay short term loans and debentures as well as long term debt obligations, to increase the Corporation's working capital. Mr. David Mears has agreed to join the Board of Directors of the Corporation, effective upon closing of the private placement.
Stripe Mobile Inc. ("Stripe") intends to subscribe for all of the units in this private placement. Stripe is controlled by Chinook Financial Ltd. which, in turn, is controlled by David Mears.
Stripe Mobile Inc., based in Calgary, Canada, has launched an exciting new mobile content service across North America. The company offers ringtones, wallpapers and their own new specialty called "phony messages". The company is connected to all major U.S. and Canadian carriers providing it with access to nearly 200 million mobile subscribers. Under the tag line "What's your Stripe?" the company promotes and develops a wide range of new mobile personalization services.
The private placement is subject to TSX Venture Exchange acceptance.
About eMedia Networks
eMedia Networks is Canada's leading supplier of licensed background (or "in store") music played in public spaces. eMedia's client base includes many national retail and restaurant chains including Roots Canada, Le Chateau, Body Shop and International Clothiers. Background music consists of CD quality artist recordings that are played in retail and restaurant establishments and other public venues to enhance and define a client's brand image and as a sales enhancement tool. The Company has annual recurring revenue of about 1.2 million dollars.
On behalf of the Board of Directors
Darren Reiter
CEO
The TSX Venture Exchange (or any other regulatory authority body) has not
reviewed the foregoing and therefore does not accept responsibility for
the adequacy or accuracy of this release.
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Disclaimer: this news release may contain certain "forward-looking"
statements." All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from the Company's
expectations are disclosed in the Company's documents filed from time to
time with the TSX Venture Exchange and the British Columbia Securities
Commission.
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