Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc.

May 29, 2006 08:30 ET

Sonomax Announces First Closing of Private Placement

MONTREAL, CANADA--(CCNMatthews - May 29, 2006) -


Sonomax Hearing Healthcare Inc. ("Sonomax" or "The Company") (TSX Venture: SHH) announces that it held the first closing of a private placement by issuing 4,400,000 units at a price of $0.20 per unit, for gross proceeds to Sonomax of $880,000. Each unit consists of one common share of Sonomax and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.25 per share until May 26, 2008.

The sale of the 4,400,000 units represents the first tranche of a private placement of up to 23,000,000 units, for maximum gross proceeds to Sonomax of $4,600,000. Sonomax expects that a second closing will take place in the near future.

The proceeds from the private placement will be used by Sonomax for working capital, start-up costs of its Consumer Division and capital expenditures for its divisions, Industrial and Consumer.

Max Capital Partners Ltd. is acting as lead agent for the private placement. Sonomax paid Max Capital a cash commission equal to 8% of the gross proceeds from the first closing, other than the proceeds from subscriptions by Sonomax insiders. As partial consideration for the services of Max Capital, Sonomax issued a non-transferable compensation option to Max Capital entitling it to acquire up to 287,500 units, each consisting of one common share and one warrant, at a price of $0.24 per unit until May 26, 2008. Each warrant will entitle the holder to purchase one common share at a price of $0.25 per share until May 26, 2008.

The common shares and warrants issued by Sonomax under the private placement are subject to a four-month hold period, expiring on September 27, 2006, in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The first closing of the private placement has increased the number of outstanding common shares of Sonomax to 71,091,248.

About Sonomax Hearing Healthcare Inc:

Sonomax Hearing Healthcare Inc (TSX Venture Exchange: SHH) is a leader in the development and manufacturing of intra-ear technology for hearing protection, hearing enhancement, and other auditory applications. Sonomax created SonoCustom®, a unique expansion earpiece and a highly efficient gatekeeper between sounds and eardrums. Sonomax is actively building a worldwide licensee network, as recently highlighted by signing important partners such as Oilind Safety, a leading safety service supplier in the United States. Sonomax was awarded the prestigious 2005 British Safety Industry Federation Product Innovation Award for its SonoCustom® technology. Furthermore, Sonomax was granted third-party validation for its SonoPass® software by universities, military contractors and government. Sonomax's SonoPlatform™ is the foundation for state-of-the-art hearing aids and digital wireless applications. The company plans to launch SonoPlatform™ later on this year via a new paradigm of quality, affordability, and consumer access.

About Max Capital Partners Ltd.

Max Capital is a Toronto based investment dealer that provides capital raising and advisory services to late stage private firms and publicly traded companies. Max Capital acts as an agent in raising equity capital for companies by utilizing their strong network of financial, strategic and crossover investors. In addition to their capital raising capabilities, they provide advisory and merchant banking services to assist clients in achieving their strategic growth initiatives and to enhance their exposure to value maximizing opportunities.

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