(Source: MARKETWIRE)
Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE: INT) announces that its wholly owned subsidiary, Itibiti Systems Inc. ("Itibiti Systems") has closed on $1,415,430.50 cash for its previously disclosed offering of convertible debentures as detailed in the press releases dated June 4, 2009, May 5, 2009 and March 4, 2009 (the "Offering"). Insiders are providing $650,000 of new investment into the Offering, with Mr. David Lucatch, CEO of Intertainment Media Inc. and President of Itibiti Systems Inc. providing $550,000. The funds are being used to continue to execute Itibiti Systems business plan as detailed in the news releases over the past several months and for working capital requirements. Given the recent increase in valuation of Intertainment, the Company has chosen to minimize dilution and will review any future financing opportunities based on current market conditions.
Itibiti Systems has received a $2.1 Million CDN offer from a Toronto based Private Equity firm. The $2.1 Million offer provides for the conversion of a previously announced term loan of $1 Million into common stock of Itibiti Systems at $0.70 per share and the infusion of additional $1.1 Million of working capital, subject to the approval of the Board of Directors and the TSX Venture Exchange.
The Company also announces that the offering detailed in the press release dated May 21, 2009, has expired and the Company did not close on any subscriptions pursuant to such offering. Intertainment continues to negotiate an equity offering from an International Mutual Fund as detailed in the May 21, 2009 release, based on an increase in price that reflects current market conditions and subject to the approval of the Board of Directors and the TSX Venture Exchange.
Dundee Securities of Toronto has exercised 2,575,000 common share purchase warrants of Intertainment Media Inc. at $0.18 for gross proceeds of $463,500 pursuant to a previously closed financing. Proceeds were used for the closing of the previously announced technology acquisition and ongoing working capital requirements.
The convertible debentures ("Debentures") of Itibiti Systems consist of convertible debentures ("Debentures") at a subscription price of $50,000 CDN per Debenture which, unless otherwise authorized, will be payable at 15% interest per year, paid semi-annually.
