TSX Venture Exchange: SRO
LONGUEUIL, QC, May 26 /CNW Telbec/ - Section Rouge Media Inc. ("Section
Rouge") (TSX Venture Exchange: SRO) announced today that it has filed with the
AutoritDe des marchDes financiers (QuDebec) a Preliminary Prospectus for a
Minimum of $1,000,000 (or 4,000,000 Units) and a Maximum of $2,500,000 (or
10,000,000 Units). Each Unit at a price of $0.25 consists of one common share
of Section Rouge and one common share purchase warrant. Each warrant will
enable its holder to subscribe one common share at a price of $0.30 at any
time during the 24 months following the closing. Section Rouge shall have the
option to accelerate the warrant exercise period should the average price of
its shares trade at a value equal to or greater than $0.45 for 20 consecutive
trading days. Union Securities Ltd. is acting as agent under the offering.
Closing is expected to occur on or about June 30, 2006, and in any event
not later than 90 days after the date of receipt of the final prospectus.
This offering is made in connection with the Acquisition by Section Rouge
of all the issued and outstanding common shares of Image in Media Inc. as
previously announced on April 07, 2006. The net proceeds will be affected to
general working capital of Section Rouge, and more specifically towards the
development of Image In Media's business plan.
Completion of the Acquisition is subject to a number of conditions,
including but not limited to, Exchange acceptance and Shareholder approval.
There can be no assurance that the Acquisition will be completed as proposed
or at all.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed acquisition and has neither approved nor disapproved the
contents of this press release.
%SEDAR: 00008697EF
