Axia NetMedia Corporation

Axia NetMedia Corporation

November 28, 2006 08:00 ET

Axia NetMedia Corporation to Raise $20,350,000 Through Bought Deal

CALGARY, ALBERTA--(CCNMatthews - Nov. 28, 2006) -


Axia NetMedia Corporation ("Axia" or the "Corporation")(TSX:AXX) today announced that it has entered into an agreement with Orion Securities Inc. and a syndicate of underwriters including Canaccord Adams Inc. and Haywood Securities Inc. pursuant to which the underwriters have agreed to purchase from the Corporation, on a "bought deal" basis, an aggregate of 5,500,000 common shares at a price of $3.70 per share for gross proceeds to the Company of $20,350,000. The Company has agreed to grant the underwriters an over-allotment to purchase an additional 550,000 common shares (10% of the offering) at the issue price of $3.70 per share, which option shall be exercisable for 30 days following the closing of the offering.

In connection with the offering, the Company will file a short form prospectus in each of the provinces of Canada other than Quebec. The offering is expected to close on or about December 20, 2006. The transaction is subject to the receipt of all necessary regulatory approvals. The proceeds from the offering will be used for further concession infrastructure costs and network development in France, working capital needs and other general corporate purposes.

The securities being offered have not been, nor will they 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.

Axia plans, designs, operates and develops Real Broadband ultra-high-performance, open access model networks that give fragmented and under-served geographies access to limitless IP connectivity and provides services on any network. Axia trades on the Toronto Stock Exchange under the symbol "AXX". For more information, visit its website at

Forward-looking Statements: Except for historical information, this news release may contain forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws, which reflect the Corporation's current expectations and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changes in customer markets, changes in demand for the Corporation's services, inability of the Corporation to deliver services in a timely and cost-efficient manner, technological change, general economic conditions and other risks detailed from time-to-time in the Corporation's ongoing filings with the Canadian securities regulatory authorities which filings can be found at Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.

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