Lingo Media Inc.
TSX VENTURE : LM
OTC Bulletin Board : LMDCF

Lingo Media Inc.

October 18, 2007 13:31 ET

Lingo Media Closes Public Offering of Subscription Receipts

TORONTO, CANADA--(Marketwire - Oct. 18, 2007) - Lingo Media Corporation (TSX VENTURE:LM) (OTCBB:LMDCF) ("Lingo Media" or the "Company") is pleased to announce that it has closed its previously announced public offering of subscription receipts (the "Offering"). The gross proceeds of the offering totaled $700,000 with an aggregate of 350,000 subscription receipts issued at a price of $2.00 per subscription receipt.

Each subscription receipt entitles the holder to receive one common share (a "Common Share") and one common share purchase warrant (a "Warrant") of Lingo Media upon the closing of the acquisition of Speak2Me Inc. (the "Acquisition"). Each Warrant entitles the holder to purchase one (1) additional Common Share of Lingo Media at a purchase price of $6.00 per share and is exercisable for a period of twelve (12) months from the closing date of the Offering.

The securities underlying the subscription receipts, including the Common Shares and Warrants issued on closing of the Acquisition and the Common Shares issuable upon exercise of the Warrants, will be subject to a four-month hold period commencing from the date of closing.

The Offering included payment of a finder's fee of up to 7.5% of the proceeds raised by arm's length finders in connection with the Offering. The proceeds of the Offering will be used for ongoing development of Speak2Me Inc.'s web portal and applications, retirement of debt and for general working capital purposes.

Further details with respect to the Acquisition can be found in previously issued press releases by Lingo Media on August 28, 2007 and September 12, 2007.

The Offering remains subject to TSX Venture Exchange acceptance and regulatory approval.

About Lingo Media (TSX VENTURE:LM) (OTCBB:LMDCF)

Lingo Media is a diversified educational media company with an established presence in China and Canada. The Company publishes English Language Learning Materials for the school market in China and publishes early childhood development programs for the direct-to-consumer market in Canada. With the Speak2Me Inc. acquisition, Lingo Media is set to launch an online social networking service for English Language learners worldwide.

In China, the Company publishes print, audio/video cassette and CD-based English language learning programs for students and teachers from pre-school through university. Lingo Media has an established presence in the Chinese educational market of more than 200 million English language students. To date, over 165 million units from Lingo Media's library of more than 300 program titles have been published and sold in China.

In Canada, Lingo Media specializes in the field of early childhood cognitive development, through A+ Child Development (Canada) Ltd. ("A+"), which distributes educational materials along with its unique curriculum. A+ has been operating in Canada for over ten years through its four offices in Calgary, Edmonton, Vancouver and Toronto. Lingo Media plans to introduce A+'s learning system and products to parents of pre-school children in China.

Portions of this press release include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this press release are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this press release. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's Annual Report 20-F and other reports filed with the Securities and Exchange Commission.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

Contact Information

  • Lingo Media (Canada)
    Michael Kraft
    President & CEO
    (416) 927-7000, ext. 23 or Toll Free: 1-866-927-7011
    (416) 927-1222 (FAX)
    Email: investor@lingomedia.com
    or
    Lingo Media (China)
    86.10.5160.0689
    86.10.5160.0788 (FAX)
    Website: www.lingomedia.com