VANCOUVER, British Columbia-SoMedia Networks Inc. (VID:CA) , the pioneer of scalable video production solutions, announces that is has closed its non-brokered private placement (the “Private Placement”) of secured convertible debentures in the principal amount of CDN$800,000 (the "Debentures") as announced on February 23, 2015. Each $1,000 in the principal amount of a Debenture issued is convertible into a Unit, each Unit consisting of 8,332 common shares and 4,166 share purchase warrants, whereby each warrant will be exercisable at a price of $0.20 per share and will expire two years after the date of the issuance of the warrant. The debentureholder (the "Holder") may convert the Debenture at any time. The Debenture will mature 24 months from the date of issuance and will bear interest at 12% per annum, compounded monthly with interest accruing and payable in full on the maturity date.
Each Debenture will be secured by granting the Holder a security interest over all of the Company’s present and after-acquired property and assets as described in the Debenture. All security interests granted to the Holders pursuant to this Private Placement will rank pari passu.
In connection with the Private Placement, the Company issued a total of 533,248 units as fees to those who introduced the Company to subscribers of the Private Placement. Each unit consists of one common share and one half share purchase warrant, with each of these warrants entitling the holder to purchase one common share of the Company at a price of $0.20 per share until March 2, 2017.
All securities issued in connection with the Private Placement will be subject to a hold period of four months plus one day from the date of the issuance of each securities. The proceeds from the Debentures are expected to be used for working capital purposes.
About SoMedia Networks
SoMedia Networks, the creator of Scalable Video, has reengineered how businesses access video content creation, production and deployment. The cloud-based SoMedia Platform allows businesses, brands and media to easily order the production of custom video content at scale and volume, anywhere, on demand, with rapid turnaround, and at a fraction of current costs.
SoMedia provides Scalable Video as an integrated solution to corporate partners, as a resale solution through thousands of web marketing firms and directly to digital agencies and millions of SMBs across North America. To learn more visit: www.somedia.net.
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George Fleming, 604-683-5510
Chairman & co-CEO
Greg Werbowski, 604-683-5510 ext. 590
Annette Leach, 415-840-2790
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