DealNet Capital Corp.

DealNet Capital Corp.

August 18, 2015 12:00 ET

DealNet Announces Closing of Private Placement for Gross Proceeds of $13,800,000

TORONTO, ONTARIO--(Marketwired - Aug. 18, 2015) - DealNet Capital Corp. ("DealNet" or the "Company") (TSX VENTURE:DLS) is pleased to announce that it has completed its previously announced private placement through a syndicate of agents led by Paradigm Capital Inc. and including Cormark Securities Inc. (together, the "Agents").

Pursuant to the terms of an agency agreement (the "Agency Agreement") among the Company and the Agents dated August 18, 2015, the Company completed a private placement (the "Offering") of 30,000,000 units (each, a "Unit") at a price of $0.40 per Unit, for aggregate gross proceeds of to $12,000,000, and the Agents exercised an over-allotment option for the issuance of an additional 4,500,000 Units for additional proceeds of $1,800,000. 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 whole Warrant will entitle the holder thereof to purchase one Common Share of the Company at an exercise price of $0.50 until February 18, 2017, subject to the terms and conditions of a warrant indenture between the Corporation and Capital Transfer Agency Inc.

As consideration for the services provided by the Agents in connection with the Offering, the Agents received a cash commission equal to 6% of the aggregate gross proceeds of the Offering and 2,070,000 compensation options (the "Compensation Options"), each Compensation Option exercisable at any time until February 18, 2017 into one Unit at an exercise price of $0.40.

The Common Shares and Warrants comprising the Units, and the Compensation Options (and the Common Shares and Warrants issuable upon exercise thereof) are subject to a hold period until December 19, 2015.

The Company intends to use the net proceeds from the Offering for underwriting equity reserves for the funding of Heating Ventilation and Air Conditioning ("HVAC") leases and financing contracts, and for working capital and general corporate purposes. While the Company intends to use the funds for the foregoing purposes, there may be circumstances where, for sound business reasons, funds may be reallocated.

Forward Looking Statements

This press release contains forward-looking statements, including the intended use of proceeds of the Offering. The forward-looking statements are based on certain expectations and assumptions made by the Company. Although the Company believes that those expectations and assumptions are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those anticipated due to a number of factors and risks. In addition to other risks, the equity offering could fail to close. The forward-looking statements contained in this press release are made as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

About DealNet Capital Corp.

DealNet Capital Corp. focuses on two key vertical markets, Consumer Engagement and Consumer Finance. Through acquisitions, the Company has become a leader in the Consumer Engagement space helping their corporate customers 'speak' to their consumers the way they want to be spoken to using live Voice, Chat, Text, Email and Proximity based engagement solutions. The Company has leveraged its engagement business to offer home improvement financing solutions to consumers, which offer attractive yields and low default rates. The Company continues to seek acquisitions in these key markets.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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