Sonomax Hearing Healthcare Inc.
TSX VENTURE : SHH

Sonomax Hearing Healthcare Inc.

July 31, 2006 17:00 ET

Sonomax Announces Fourth Closing of Private Placement

MONTREAL, QUEBEC--(CCNMatthews - July 31, 2006) - NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OF FOR DISSEMINATION IN THE UNITED STATES.

Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) announces that it has completed the closing of a fourth tranche of its previously-announced private placement by issuing a total of 4,550,000 units at a price of $0.20 per unit, for gross proceeds to Sonomax of $910,000. Each unit consists of one common share of Sonomax and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.25 per share until July 28, 2008.

The sale of the 4,550,000 units represents the fourth tranche of a private placement of up to 23,000,000 units, for maximum gross proceeds to Sonomax of $4,600,000. The TSX Venture Exchange has accepted Sonomax's request to increase the maximum offering to 25,500,000 units, for maximum gross proceeds to Sonomax of $5,100,000. To date, Sonomax has issued an aggregate of 21,775,000 units, for gross proceeds of $4,355,000. Sonomax anticipates that a fifth and final closing for the remaining available units will take place shortly.

The proceeds from the private placement will be used by Sonomax for working capital, start-up costs of its Consumer Division and capital expenditures for its divisions, Industrial and Consumer.

Max Capital Partners Ltd. is acting as lead agent for the private placement. Sonomax paid Max Capital and selling agents a cash commission equal to 8% of the gross proceeds from the private placement. As additional consideration for the services of the agents, Sonomax is required to issue 10% non-transferable compensation options. Each compensation option entitles the holder thereof to acquire an equivalent number of units of Sonomax consisting of one common share and one warrant, at a price of $0.24 per unit for a period of 24 months. Each warrant will entitle the holder to purchase one common share at a price of $0.25 per share for a period of 24 months.

The common shares and warrants issued by Sonomax under the fourth tranche of the private placement are subject to a four-month hold period, expiring on November 29, 2006, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

As a result of the closing of the fourth tranche of the private placement, there are 100,466,248 outstanding common shares of Sonomax.

About Sonomax Hearing Healthcare Inc:

Sonomax Hearing Healthcare Inc (TSX Venture Exchange: SHH) is a leader in the development and manufacturing of intra-ear technology for hearing protection, hearing enhancement, and other auditory applications. Sonomax created SonoCustom®, a unique expansion earpiece and a highly efficient gatekeeper between sounds and eardrums. Sonomax is actively building a worldwide licensee network, as recently highlighted by signing important partners such as Oilind Safety, a leading safety service supplier in the United States. Sonomax was awarded the prestigious 2005 British Safety Industry Federation Product Innovation Award for its SonoCustom® technology. Furthermore, Sonomax was granted third-party validation for its SonoPass® software by universities, military contractors and government. Sonomax's SonoPlatform™ is the foundation for state-of-the-art hearing aids and digital wireless applications. The company plans to launch SonoPlatform™ later on this year via a new paradigm of quality, affordability, and consumer access.

For further information, please visit our website: www.sonomax.com

About Max Capital Partners Ltd.

Max Capital is a Toronto based investment dealer that provides capital raising and advisory services to late stage private firms and publicly traded companies. Max Capital acts as an agent in raising equity capital for companies by utilizing their strong network of financial, strategic and crossover investors. In addition to their capital raising capabilities, they provide advisory and merchant banking services to assist clients in achieving their strategic growth initiatives and to enhance their exposure to value maximizing opportunities.

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

Contact Information

  • Sonomax Hearing Healthcare Inc.
    Nick Laperle
    President
    (514) 932-2674
    nlaperle@sonomax.com
    or
    HKDP Communications and public affairs
    Jacques C. Gagnon
    Senior Consultant
    (514) 395-0375
    jgagnon@hkdp.qc.ca
    or
    Max Capital Partners Ltd.
    Scott Walters
    Managing Partner
    (416) 369-0374
    scott@maxcpl.com