Kaboose Inc.
TSX : KAB

December 08, 2006 08:01 ET

Kaboose Inc. Announces $25 Million "Bought Deal" by way of Treasury and Secondary Offering

TORONTO, ONTARIO--(CCNMatthews - Dec. 8, 2006) -

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

Kaboose Inc. (the "Company") (TSX:KAB) and Green Diamond Oil Corp., Jonathan Graff and Eric Yuzpe are pleased to announce that they have entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including Sprott Securities Inc., which have agreed to purchase, on a bought deal basis 6,000,000 common shares from the Company and 4,000,000 common shares in the capital of the Company from Green Diamond Oil Corp., Jonathan Graff and Eric Yuzpe (collectively, the "Selling Shareholders") at a purchase price of $2.50 per common share, for aggregate gross proceeds of approximately $15,000,000 to the Company and aggregate gross proceeds to the Selling Shareholders of $10,000,000. The underwriters will also have an option, exercisable for a period of 30 days following the closing date, to purchase from the Company and the Selling Shareholders up to an additional 1,500,000 common shares on the same terms and conditions to cover over-allotments and for market stabilization purposes. The Company intends to use the net proceeds of the treasury offering for working capital and general corporate purposes, including potential acquisitions.

The common shares to be issued and sold under this offering will be offered by way of a short form prospectus in all of the provinces in Canada except Quebec and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on or about January 3, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

About Kaboose Inc.

Kaboose is the largest independent, family-focused online media company in North America and one of the top-five most visited family destinations online. From pregnancy to parenting, birthday parties to scrapbooking, and entertainment to education, Kaboose has the content and applications to help parents plan and share their family life. Kaboose owns some of the world's leading online properties targeting families, including BabyZone.com, Kaboose.com, TwoPeasInABucket.com, BirthdayInABox.com, Funschool.com and Zeeks.com. Kaboose trades on the Toronto Stock Exchange under the symbol "KAB."

This document may contain forward-looking statements, relating to Kaboose Inc.'s operations or to the environment in which it operates, which are based on Kaboose Inc.'s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Kaboose Inc.'s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Kaboose Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Kaboose Inc.
    Jonathan Pollack
    Chief Financial Officer
    (416) 593-3000 ext.290
    (416) 593-4658 (FAX)
    Website: www.Kaboose.com