LONGUEUIL, QC, Jan. 7 /CNW Telbec/ - SECTION ROUGE MEDIA INC. (TSX-V: SRO) ("Section Rouge Media") is pleased to announce that the sale of all of the shares of its wholly-owned subsidiary Image In Media Inc. has now been completed. This transaction was initially announced in a press release dated July 12, 2007, and was further disclosed in the management proxy circular dated August 2, 2007 which is available on SEDAR at www.sedar.com. Moreover, the valuation reports of the issued and outstanding shares of Image In Media Inc. as of April 20, 2007 and as of July 13, 2006 may also be found on SEDAR. The sale was made to a group headed by Pierre Bernatchez and Luigi Porco, both former owners of Image In Media Inc., in consideration for 9,351,808 common shares of Section Rouge Media controlled by this group, which shares will be cancelled subsequent to the closing of the transaction, as well as for a $1,428,000 convertible debenture of Image In Media Inc. The convertible debenture has a five-year term, a 7% interest rate and is convertible at Section Rouge Media's option into common shares of Image In Media Inc. upon certain stated events. Section Rouge Media obtained an exemption from the Autorite des marches financiers for the repurchase of its shares and the approval of the transaction by the majority of the minority of its shareholders at its annual and special meeting of the shareholders held August 31, 2007. Closing is subject to final approval of the TSX Venture Exchange.
Following this transaction and the subsequent cancellation of the 9,351,808 common shares of Section Rouge Media, the share capital of Section Rouge Media will be 39,965,902 common shares.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00008697EF