Musicrypt Inc.
OTC Bulletin Board : MCYPF
TSX VENTURE : MCT

Musicrypt Inc.

January 18, 2007 11:45 ET

Musicrypt Announces Pricing of Private Placement

TORONTO, ONTARIO--(CCNMatthews - Jan. 18, 2007) - NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Musicrypt Inc. (TSX VENTURE:MCT)(OTCBB:MCYPF), the leader in secure digital media distribution, today announced that it has that it has priced its previously announced private placement with Sprott Securities Inc. ("Sprott Securities"). Musicrypt will offer for sale through Sprott Securities up to 40 million common shares at a price of $0.25 per share for gross proceeds of up to $10 million. The shares will be offered by Sprott Securities on a best efforts private placement basis.

The purpose of the financing is to provide resources for Musicrypt's European market expansion with Adstream, its US music delivery market growth, its radio and TV advertising delivery initiatives and the enforcement of its intellectual property rights. Completion of the offering is expected to occur on or about February 6, 2007 and is subject to the satisfaction of certain customary conditions including approval of the TSX Venture Exchange.

The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About Musicrypt Inc.:

Musicrypt's patented Digital Media Distribution System (DMDS) is the leading secure B2B digital delivery solution for the music industry. DMDS is a web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective and far less costly digital delivery of broadcast quality media via the Internet. Musicrypt trades on the TSX Venture Exchange (TSX-V) under the symbol MCT and in the U.S. under OTCBB:MCYPF.

Musicrypt's patented Digital Media Distribution System (DMDS) has delivered over 5,500 songs from more than 150 record labels to destinations which include radio stations representing over 35 US broadcast chains such as CBS/Infinity, Citadel, Clear Channel, Cox, Cumulus, Emmis, EntreVision, Entercom, Federated Media, Sirius, Journal, DMX, Jones Radio, AOL, Music Choice, Radio One, Salem Communications, Univision, Westwood One, Regent, Premiere Radio, Next Media, XM Satellite Radio, Waitt Media and many others. DMDS is the only digital delivery system that can deliver music throughout the US and Canada.

Musicrypt is partnered in the US with Billboard, R&R and Nielsen BDS, in the UK, Europe and Australia with Adstream Ltd., and is marketed to the advertising industry by AWE, a division of The Omnicom Group.

The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

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

Contact Information

  • Musicrypt Inc.
    John Heaven
    President and CEO
    (905) 763-3553