The Intertain Group Limited
TSX : IT

July 10, 2014 09:30 ET

The Intertain Group Limited Announces Closing of $103.5 Million Bought Public Offering of Securities Including Full Exercise of Over-Allotment Option

TORONTO, ONTARIO--(Marketwired - July 10, 2014) -

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The Intertain Group Limited ("Intertain" or the "Company") (TSX:IT) today announced the closing of its previously announced bought deal public offering of 7,475,000 equity subscription receipts ("Equity Subscription Receipts"), and 51,175 equity-linked debt subscription receipts ("Equity-Linked Debt Subscription Receipts"), inclusive of 975,000 Equity Subscription Receipts and 6,675 Equity-Linked Debt Subscription Receipts issued pursuant to the exercise in full of the over-allotment option, for total gross proceeds of $103,500,000 (the "Offering"). The Offering was conducted through a syndicate of underwriters led by Canaccord Genuity Corp. and including Mackie Research Capital Corporation, Clarus Securities Inc., National Bank Financial Inc., Cormark Securities Inc., Haywood Securities Inc., and Global Maxfin Capital Inc. (the "Underwriters").

The net proceeds from the Offering will be used by Intertain to fund the previously announced acquisition of Mandalay Media Limited (the "Mandalay Acquisition"). All material conditions for the closing of the Mandalay Acquisition have now been satisfied and the Company expects the transaction to close in the next few days. Intertain has engaged Canaccord Genuity Corp. to act as exclusive financial advisor in connection with the Mandalay Acquisition. Furthermore, Canaccord Genuity has provided an opinion to the board of directors of Intertain that, as of the date of the July 10, 2014, the consideration to be paid by Intertain pursuant to the Mandalay Acquisition is fair, from a financial point of view, to the shareholders of Intertain.

For further details on the Offering and the Mandalay Acquisition, please see Intertain's press releases dated June 4 and June 16, 2014 and its short form prospectus dated July 2, 2014, available on SEDAR at www.sedar.com.

About The Intertain Group Limited

Intertain, through its subsidiary, CryptoLogic Operations Limited, is an online gaming company, which provides entertainment to a global consumer base. Intertain currently offers casino and poker games to its customers using the InterCasino and InterPoker brands. Licensed in Malta, InterCasino is one of the longest running online casinos in the world and was launched in 1996. The site provides a large variety of the most popular and well-known casino games and slot machines titles in an online format. The InterCasino gaming platform is supplied by Amaya Gaming Group Inc. and the Costa Bingo site of Mandalay Media Limited operates off of the Dragonfish platform, a leading bingo software service provided by 888 Holdings plc.

Forward-Looking Statements

There can be no assurance that the Mandalay Acquisition will close. Information in this press release that is not current or historical factual information may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of securities laws, related to the timing and completion of the Mandalay Acquisition and the anticipated benefits of such acquisition, including the timing and value of revenue and earnings growth potential. This information is based on certain assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates, limited operating history, the heavily regulated industry, competition issues, the possibility that the Company be unable to complete the Mandalay Acquisition and integrate Mandalay Media Limited's business successfully, the impact of change in regulations or industry standards, international operations and risks of foreign operations, the Company's capital structure, funding strategy, share price and the Company's ability to protect its intellectual property. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

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