KidsFutures Inc.

KidsFutures Inc.

January 31, 2007 17:27 ET

KidsFutures Announces Initial Closing of Equity Private Placement

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2007) -


KidsFutures Inc. (TSX VENTURE:FUT) today announced that it has completed the initial closing of its previously announced private placement of up to $7,000,000. The initial closing consisted of 30,094,373 units (each, a "Unit") at a subscription price of $0.12 per Unit (the "Financing") for gross proceeds of just over $3,600,000. Based on additional subscriptions received to date, the Company expects that the second closing will occur on or about February 14, 2007, satisfying the Company's financing goals.

Each Unit consists of one common share of the Company (a "Common Share") and one half of one Common Share purchase warrant (a "Warrant"). Each full Warrant will give the holder the right to purchase one Common Share at a price of $0.20 for a period of 18 months from the first closing date of the Financing (the "Closing Date").

Wellington West Capital Markets Inc. ("Wellington West") acted as the Company's agent on a best efforts basis in connection with the Financing. A cash commission of 7% of the gross proceeds of the Financing on orders raised by Wellington West, and a reduced commission of 3% on proceeds from investors sourced by the Company, has been paid to Wellington West. In addition, Wellington West has been granted 211,000 broker warrants giving it the right to purchase Units at an exercise price of $0.12 per Unit. The broker warrants will be exercisable for a period of 18 months from the Closing Date. All of the shares issued in the private placement are subject to restrictions on resale until June 1, 2007 as prescribed under applicable securities laws and the policies of the TSX Venture Exchange.

About KidsFutures Inc. and Futura Rewards

Operated by Toronto-based KidsFutures Inc., the Futura Rewards Program helps Canadians save money by purchasing a wide variety of consumer products and services from a broad array of some of Canada's best-known retailers, service companies and brands. Members earn rewards that are cash-equivalent and can be directed into any financial product -- mutual funds in a RRSP, Registered Education Savings Plans (RESPs), GICs, etc. -- at any financial institution in Canada. Members can also direct their rewards to registered charities of their choice.

The Futura Rewards Program has in excess of 340,000 members who benefit from numerous opportunities to earn Futura Rewards through a coalition of over 60 Program Partners representing over 100 well-known brands, services and hundreds of individual products. The program is also available in more than 1,100 retail locations and more than 50 grocery locations across Canada. For more information, visit

Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward looking statements are not historical facts, but reflect KidsFutures' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including any risks and uncertainties described herein, as well as the risks and uncertainties detailed in our final long form prospectus dated November 29, 2005 filed with the regulatory authorities.

TM Trademark of KidsFutures Inc.

The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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