Chalk Media Corp.
TSX VENTURE : CKM

Chalk Media Corp.

November 08, 2007 14:49 ET

Chalk Media Corp. Announces Terms of Previously-Announced Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES

Chalk Media Corp. (TSX VENTURE:CKM) ("Chalk") announces that it has entered into an underwriting agreement with a syndicate of underwriters led by TD Securities Inc. and Blackmont Capital Inc. (the "Underwriters") to sell 30 million common shares at a price of $0.25 per common share to raise gross proceeds of $7.5 million pursuant to an amended and restated short form prospectus (the "Offering") filed in each Canadian province, other than Quebec. The Company has granted the underwriters an over-allotment option to purchase that number of additional common shares equal to up to 15% of the common shares sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering.

The Company intends to use the net proceeds of the Offering to increase development, sales and marketing efforts for Chalk's software products, including hiring additional sales personnel, and for working capital and general corporate purposes.

The Offering is expected to close on or about November 23, 2007.

The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Chalk Media Corp.

Chalk's new mobile content deployment system allows multimedia content to be created, securely pushed and tracked on BlackBerry® smartphones. Our software and content help organizations communicate with their employees, business partners and customers. Additional information is available at www.chalk.com.

The BlackBerry® and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM assumes no liability and makes no representation, warranty or guarantee in relation to third party products or services.

Forward Looking Statement

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Chalk to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the speculative nature of the software industry, which is affected by numerous factors beyond Chalk's control; the existence of present and possible future government regulation; the significant and increasing competition that exists in the software industry; and risks associated with early stage companies such as Chalk, including uncertainty of revenues, markets and profitability and the need to raise additional funding.

Although Chalk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Chalk does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. Further information on Chalk Media Corp. is available at www.sedar.com.

The TSX Venture Exchange has not reviewed the contents of this release and is not responsible for its accuracy.

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