MediaValet Inc.
TSX VENTURE : MVP

MediaValet Inc.

January 24, 2018 20:44 ET

MediaValet Increases Financing Round to $10 Million; Co-led by Canaccord Genuity and Gravitas Securities

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 24, 2018) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES

MediaValet Inc. (TSX VENTURE:MVP), is pleased to announce that, due to oversubscription, it has increased the size of its brokered private placement previously announced on December 20, 2017. MediaValet will now raise up to an aggregate of $10 million through two equity placements: a $7.5 million brokered private placement, led by Canaccord Genuity and Gravitas Securities (increased from 5 million); and, a $2.5 million non-brokered private placement (unchanged).

Canaccord Genuity and Gravitas Securities (the "Agents") have agreed to act on a commercially reasonable efforts basis as MediaValet's exclusive agents for a private placement (the "Brokered Placement") of up to 125,000,000 shares at a price of $0.06 per share, for aggregate gross proceeds of up to $7.5 million. This represents an increase of $1.5 million over its previously announced private placement with the Agents to raise $5.0 million with a $1 million over-allotment option. As a result of the increase in the size of the placement, the Agents will no longer have an over-allotment option.

In connection with the Brokered Placement, MediaValet will pay to the Agents a cash commission of 8% of the proceeds raised and will issue to the Agents an option, exercisable for a period of 24 months following the closing of the Brokered Placement, entitling the Agents to purchase shares equal to up to 8% of the number of shares sold in the Brokered Placement at $0.06 for the first 12 months and at $0.09 for the remaining 12 months.

Concurrently, MediaValet intends to issue up to 41,666,667 shares through a non-brokered private placement (the "Non-Brokered Placement), at a price of $0.06 per share for aggregate gross proceeds of up to $2.5 million.

Securities issued pursuant to the private placements will be subject to a hold period of four months from the date of closing. The private placements remain subject to the approval of the TSX Venture Exchange.

Insiders and their affiliates intend to subscribe for up to $1.8 million of the non-brokered private placement. Proceeds from the placements will be used to fund sales and marketing, product innovation, and general operations; acceleration of planned growth initiatives, and to pay down outstanding indebtedness, including approximately $2.4 million owed to directors and officers of MediaValet.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or under any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About MediaValet Inc.

MediaValet stands at the forefront of the cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available on 44 highly secure and hyper scalable data centers around the world, MediaValet is uniquely equipped to meet the digital asset management needs of any organization, no matter its size, its industry or its location. Cutting-edge technology, exceptional product design, and unlimited friendly customer service are at the core of MediaValet's DNA - ensuring exceptional customer and user experiences are delivered at all times.

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"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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