TSX VENTURE EXCHANGE: SRO
MONTREAL, Oct. 30 /CNW Telbec/ - Section Rouge Media Inc. ("Section
Rouge") (TSX Venture Exchange: SRO) announced today that it has completed the
second and final closing of its public offering for 2,233,000 additional units
at a price of $0.25 per unit for gross proceeds of $558,250. 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. ("Union") acted as agent under the offering.
Section Rouge paid Union a cash commission of ten percent (10%) of the gross
proceeds received from the second closing of the offering. In addition, Union
broker warrants to purchase 223,300 additional units of Section Rouge have
been granted as partial consideration at a price of $0.25 per unit for a
period of 24 months of initial closing.
The net proceeds of the offering will be affected towards the development
of Section Rouge subsidiary's - Image In Media Inc. - business plan and to
general working capital of Section Rouge.
Section Rouge has received from the MinistGere du Revenu du QuDebec an
advance ruling confirming that its common shares will qualify for inclusion in
the SME Growth Stock Plan in accordance with the Budget and the provisions of
the Taxation Act (QuDebec).
About Section Rouge Media and Image in Media
Section Rouge (TSX Venture Exchange - SRO) is an integrated entertainment
company which specializes in both publishing and electronic content production
and distribution. Its publications division publishes 30 titles regularly
(magazines and games). Through its wholly-owned subsidiary, Image in Media,
Section Rouge develops, finances, produces and distributes cross-media
products for the worldwide marketplace. Image In Media's integrated approach
combines services and expertise in production management, marketing and
distribution of products on all formats. Image offers to its growing network
of independent content producers and distribution partners, via its production
and financing services, the possibility to create profitably for the worldwide
marketplace while building the Image In MDedia's catalogue of rights.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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