DealNet Capital Corp.

CNSX : DLS
PINKSHEETS : GAIMF


DealNet Capital Corp.

August 22, 2014 16:02 ET

DealNet Closes Final Tranche of Secured Subordinated Debenture Offering

TORONTO, ONTARIO--(Marketwired - Aug. 22, 2014) - DealNet Capital Corp. (the "Company" or "DealNet") (CSE:DLS)(PINKSHEETS:GAIMF) is pleased to announce it has closed the third and final tranche of its non-brokered secured subordinated debenture (the "Debentures") offering (collectively with the first and second tranches as previously announced, the "Offering") for gross proceeds of an additional $275,000 and total gross proceeds of $1,497,000 raised under the Offering. The Company originally announced its intention to raise up to $1,500,000 of the Debentures on July 18, 2014 and has now fully closed the total Offering.

About the Debentures

The Debentures will mature on the date that is six (6) months from the date of issuance and bear interest at a rate of 15% per annum, which shall accrue and be paid on the maturity date. In addition, a 3% establishment fee will be paid to the holders of the Debentures and be due on the maturity date. In connection with the third and final tranche, the Company will also issue 192,500 common share purchase warrants to the holders of the Debentures so subscribed for (the "Warrants"). Each Warrant will entitle the holder to purchase one common share of the Company at $0.30 over a period of twenty four (24) months from the date of the Debenture issuance. The total amount of Warrants issued by the Company under the Offering is in the aggregate 1,047,900 Warrants.

The Debentures and Warrants will have a hold period of four months from the date of issuance.

The Debentures will be indirect secured obligations of the Company ranking subordinate to all liabilities except liabilities, which by their terms rank in right of payment equally with or subordinate to the Debentures. The Debentures will rank pari passu with all subordinate indebtedness issued by the Company from time to time, to the extent subordinated on the same terms.

The proceeds of the offering will be used to implement management's business plan, which includes acquisitions, business development, corporate marketing initiatives, project specific infrastructure and general working capital purposes. The Company will pay a finder's fee equal to 2% in cash and 2% in warrants of the gross amount invested by accredited investors introduced to the Company by registered dealers.

About DealNet Capital Corp.

DealNet Capital Corp. is a public company that trades under the symbol DLS on the Canadian Securities Exchange. DealNet is a merchant banking company with a flexible investment mandate and a strategic focus on recurring revenue businesses. The Company has focused its investments towards the thriving North American business process outsourcing ("BPO") market through its wholly-owned subsidiary, OC Communications Group Inc. ("OCCGI"), as well as the consumer financing market through its wholly-owned subsidiary, One Dealer Inc. ("One Dealer").

ON BEHALF OF DEALNET CAPITAL CORP.

For additional information please visit www.sedar.com.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These statements involve risks and uncertainties including, without limitation, DealNet Capital's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.

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