Metamedia Capital Corp.
TSX VENTURE : MME

Metamedia Capital Corp.

October 19, 2006 19:29 ET

Metamedia Capital Corp. Announces Completion of Brokered Private Placement

CALGARY, ALBERTA--(CCNMatthews - Oct. 19, 2006) - Metamedia Capital Corp. (TSX VENTURE:MME) (the "Corporation") is pleased to announce that the Corporation has completed its brokered private placement offering (the "Private Placement") of units (the "Units"), as previously announced in the press releases of the Corporation dated July 12, 2006 and September 5, 2006. The final closing (the "Final Closing") of Units was completed on October 19, 2006, whereby 285,642 Units were issued at a purchase price of $0.70 per Unit for total gross proceeds of $199,949.40.

Pursuant to the Private Placement, the Corporation has issued a total of 657,642 Units at a purchase price of $0.70 per Unit for gross proceeds of $460,349.40. Each Unit is comprised of one common share ("Common Share") in the capital of the Corporation and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder to acquire one additional Common Share at an exercise price of $1.10 per share for a period of 12 months from the date of issuance.

Raymond James Ltd. (the "Agent") acted as the Corporation's agent in connection with the Private Placement. At the Final Closing, the Agent was paid a cash commission equal to 8% of the gross proceeds from the sale of Units to subscribers who purchased through the Agent. In addition, the Agent received Common Share purchase warrants ("Agent's Warrants") equal to 10.4% of the number of Units sold to subscribers who purchased through the Agent. Each Agent's Warrant entitles the Agent to acquire one Common Share at a price of $0.80 per share for a period of 24 months from the date of issuance.

The Common Shares, Warrants and Agent's Warrants to be issued pursuant to the Private Placement will be subject to a four month hold period from the date of closing. The Private Placement is subject to final approval from the TSX Venture Exchange.

The proceeds of the Private Placement will be used to acquire capital assets, to implement and operate the broadcast division of the Corporation and for working capital purposes.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Metamedia Capital Corp.
    Mr. Alexandros Kostis
    President
    (403) 333-3000
    Email: akostis@metohos.com