Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc.

August 31, 2005 16:35 ET

Sonomax Hearing Healthcare Announces Final Closing of Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Aug. 31, 2005) -


Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) previously announced a private placement of up to 10,000,000 units for gross proceeds of up to $3 million. (Press release - April 7, 2005). Each unit consists of one common share of Sonomax and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share of Sonomax at a price of $0.60 per share for a period of twelve months. On April 7, 2005 the Company announced the closing of a first tranche of 6,666,667 units, for gross proceeds of $2 million, and on August 16, 2005 the Company announced the closing of a second tranche of 2,283,333 units for gross proceeds of $684,999.90. The Company today announces the closing of a final tranche of 1,050,000 units for gross proceeds of $315,000.

Insiders of Sonomax subscribed for 12.83% of the total 10,000,000 units.

With respect to the final tranche of 1,050,000 units, Sonomax paid to Lorian Group a cash commission in the amount of $14,250, issued to Lorian Group broker's warrants entitling it to acquire 105,000 common shares of Sonomax at a price of $0.30 per share until August 31, 2007, and also agreed to pay to Lorian Group a cash commission equal to 5% of the gross proceeds from the exercise of the Warrants which are part of the above mentioned Units.

The proceeds from the private placement will be added to Sonomax's working capital.

The common shares and Warrants issued by Sonomax under the private placement are subject to a four-month hold period from the date of issuance in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The private placement has increased the number of outstanding common shares of Sonomax to 57,623,748.

About Sonomax Hearing Healthcare Inc.

Sonomax has invented a unique earpiece that is the gatekeeper between sounds and eardrums. With its multi-purpose capabilities, it can shut the gate on harmful sounds like workplace noise with unparalleled efficiency, and can also welcome sounds like music and voices with perfect fidelity. Technological advances in the hearing protection, hearing aid and personal electronics fields, presently lack the last piece of the puzzle -- an interface that will optimize their very exciting potentials. Sonomax's scientifically proven proprietary expansion technology is the last piece of the puzzle -- an instant-fit, custom-made earpiece that delivers a perfect acoustic seal every time, along with a computer-generated proof of performance.

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

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