Intertainment Media Inc.
TSX VENTURE : INT
OTCQX : ITMTF
FRANKFURT : I4T

Intertainment Media Inc.

May 02, 2013 09:20 ET

Intertainment Announces Closing of Final Tranche of Convertible Debenture Offering and the Repricing of Certain Outstanding Warrants

TORONTO, CANADA--(Marketwired - May 2, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) is pleased to announce the completion of the third and final tranche of a non-brokered private placement of units ("Units") previously announced on January 21, 2013, March 7, 2013, March 22, 2013 and April 9, 2013 (the "Offering"). Upon closing of the third tranche of the Offering, 100 Units were issued at a price of $1,000 per Unit, with each Unit consisting of $1,000 principal amount of secured convertible debentures (the "Debentures") and 8,333 common share purchase warrants (the "Warrants"), for gross proceeds to the Company of $100,000. The total gross proceeds raised under this Offering is $690,000. The Company anticipates using the proceeds from the Offering for general working capital and US expansion initiatives for Intertainment and its subsidiaries.

Each Warrant issued pursuant to the Offering entitles the holder thereof to purchase one common share for a two year period from the date of issuance at an exercise price of $0.125 per common share. The Debentures bear interest at a rate of 12% per annum, are payable bi-monthly and will run for a term of two years. The Debentures are secured against the assets of the Company and rank pari passu with certain other debentures issuable by the Company. The Debentures are convertible, in whole or in part, at the option of the holder, for common shares at a price of $0.12 per common share for a period of two years from the date of issuance of the Debentures, and may be redeemed by the Company at any time.

In connection with the second tranche of the Offering, the Company paid a cash finder's fee of $4,000 and issued 33,332 finder's warrants ("Finder's Warrants"). Each Finder's Warrant will entitle the holder to purchase one common share (a "Finder's Warrant Share") at a price of $0.125 per Finder's Warrant Share for a period of two years from the date of issuance of the Finder's Warrants.

All securities issued in connection with the third tranche of the Offering are subject to a four-month hold period, expiring August 31, 2013. The Offering is subject to final regulatory approval.

Intertainment also announces that it has repriced certain of its outstanding common share purchase warrants. The exercise price of the 12,500,000 warrants issued on August 31, 2012 (the "Warrants") has been reduced from $0.29 per common share to $0.10 per common share, provided that the exercise term of the warrants shall be shorten to 30 days if Intertainment's common shares trade at $0.125 or higher for 10 consecutive trading days. These amendments to the terms of the Warrants have been accepted by the TSX Venture Exchange.

The Company, subject to board and regulatory approval, will issue up to 2.95 Million common share purchase warrants at $0.12 per common share, valid for two (2) years. No options were issued to insiders.

About Intertainment - www.intertainmentmedia.com

Intertainment is one of Canada's leading technology incubators and is focused on developing, nurturing and investing in both North American and global technologies and companies that provide technology solutions for brands and consumers alike. Intertainment also owns and operates a number of key properties including Ortsbo, Deal Frenzy, The Sweet Card and Magnum, with investments in leading edge technologies and social media platforms including theaudience.com, capthat.com and Yappn.com. For more information on Intertainment and its properties, please visit www.intertainmentmedia.com.

Intertainment is headquartered in the Toronto, Canada region, with offices in New York, Los Angeles and San Mateo, CA and is listed on the TSX Venture Exchange under the symbol "INT" (TSXV:INT) and in the US on the OTCQX Market under the symbol "ITMTF". Intertainment is also traded in Europe on the unofficial market of the Frankfurt Exchange through the XETRA trading platform under the symbol "I4T".

This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law, including statements relating to the expected use of proceeds of the Offering.

Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.

This news release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")), absent registration or an exemption from registration. The securities offered have not been and will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not be offered for sale in the United States, except in transactions exempt from registration under the U.S. Securities Act and applicable state securities laws.

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

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