Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc.

February 19, 2008 16:43 ET

Sonomax Hearing Healthcare Engages Loewen, Ondaatje, Mccutcheon Limited for $2 Million Convertible Debenture Private Placement


Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) announces that it has engaged Loewen, Ondaatje, McCutcheon Limited to act as its agent for a private placement of unsecured convertible debentures in a maximum amount of $2 million.

The debentures will bear interest at a rate of 12% per annum, payable semi-annually in arrears, and will mature two years from the closing date of the private placement.

The debentures will be convertible upon maturity, at the option of the holders, into common shares of Sonomax on the basis of one common share for every $0.40 principal amount of the debentures. In addition, if the common shares of Sonomax trade at a price of $0.75 or more on each day during a period of 20 consecutive trading days, with an average daily trading volume of at least 250,000 shares during the 20-day period, the debentures will be, at the option of Sonomax, automatically converted into common shares at a price of $0.40 per share.

It is expected that the debentures will be offered in all provinces of Canada on a prospectus-exempt basis. The debentures may also be sold in certain jurisdictions outside Canada to accredited investors. Closing of the private placement is expected to take place on or about March 14, 2008.

The proceeds from the placement will be used primarily to support the introduction of Sonomax's Soundcage custom-fit hi-fidelity earphones in the U.S. retail market, starting with two flagship Virgin Megastores in Los Angeles and New York, and for working capital purposes.

The placement of the debentures is subject to regulatory approval, including that of the TSX Venture Exchange. There are currently 148,046,287 issued and outstanding common shares of Sonomax.

About Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc. is a leader in the development and manufacturing of intra-ear technologies. The company's patented custom-fit, instant-fit expansion earpieces deliver a perfect acoustic seal every time and can be certified by SonoPass®, the company's proprietary, computer generated proof-of-performance software. Building on its technology leadership in hearing protection, Sonomax has expanded the applications for its technologies into high growth consumer markets such as MP3 audio, multi-media and gaming earphones, as well as Bluetooth™ headsets for telephony, through its subsidiary VitaSound Audio Inc.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Sonomax Hearing Healthcare Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

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

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