TSX Venture Exchange: SRO
MONTREAL, QC, July 13 /CNW Telbec/ - Section Rouge Media Inc. ("Section
Rouge") (TSX Venture Exchange: SRO) announces that it has completed the first
closing of its public offering for 7,546,000 units at a price of $0.25 per
unit for gross proceeds of $1,886,500. Each unit is comprised of one common
share of Section Rouge at a price of $0.25 per share and one common share
purchase warrant. Each warrant entitles its holder to subscribe to one common
share of Section Rouge at a price of $0.30 at any time until July 12, 2008.
Section Rouge has the option to accelerate the warrant exercise period should
the average price of its shares trade at a value equal or greater than $0.45
for 20 consecutive trading days.
Union Securities Ltd. ("USL") acted as agent under the offering. Section
Rouge paid USL a cash commission of ten percent (10%) of the gross proceeds
received from the offering. In addition, USL has the option to purchase within
24 months of closing, 754,600 units of Section Rouge at a price of $0.25 per
unit. Section Rouge paid to USL an agency fee of $20,000.
Section Rouge also announces that it has completed the acquisition of all
the issued and outstanding securities of Image in Media Inc. ("Image") as
previously announced on April 7, 2006 (the "Acquisition") in consideration for
the issuance of (i) 17,333,333 common shares of Section Rouge, (ii) 825,004
warrants to subscribe common shares of Section Rouge at a price of $0.22 per
common share, and (iii) options to certain employees of Image, pursuant to
Section Rouge stock option plan, to subscribe 833,253 common shares of Section
Rouge at a price of $0.30 per common share, until June 22, 2007. Section Rouge
also issued 800,000 common shares and 393,330 warrants to InterCapital
Consultants Inc. as a finder's fee. All of the 17,333,333 common shares as
well as certain common shares and warrants of InterCapital Consultants Inc.
are escrowed or subject to resale restrictions.
The offering was made in connection with the Acquisition. The net
proceeds of the offering will be affected towards the development of Image In
Media's business plan and to general working capital of Section Rouge.
Image in Media is an executive and financial producer in the movie and
television industry. The Acquisition will allow Section Rouge to enter into
the international movie, television and new televisual technology fields. The
Acquisition should also permit Section Rouge to reinforce its operations in
the printed media segment through Image in Media's derivative products.
Trading on the common shares of Section Rouge will resume at the opening
on July 14, 2006.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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