Sonomax Hearing Healthcare Inc.
TSX VENTURE : SHH

Sonomax Hearing Healthcare Inc.

January 31, 2006 18:07 ET

Sonomax Hearing Healthcare Inc. to Enter Into Loan Transaction

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

Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) today announced that it intends to borrow an aggregate amount of up to $1 million from various "accredited investors". The loans will bear interest at an annual rate of 10%, payable monthly, and will be due in one year. The proceeds from the loans will be added to Sonomax's working capital.

As part of the transaction, Sonomax will issue common share purchase warrants to each lender on the basis of two warrants for each dollar of the principal amount loaned. Each warrant will entitle the holder to purchase one additional common share of Sonomax for one year at a price of $0.22 per share. The warrants will be non-transferable.

The issuance of the warrants by Sonomax is subject to final approval by the TSX Venture Exchange; the first closing of the loan transaction will take place upon receipt of such approval. Certain directors of Sonomax will be among the lenders.

About Sonomax Hearing Healthcare Inc:

Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH),(www.sonomax.com) is a leader in the development and deployment of intra-ear technology for hearing protection, hearing enhancement, and other auditory applications. Sonomax has invented a unique expansion earpiece, the SonoCustom®, which is a highly efficient gatekeeper between sounds and eardrums. With its multi-purpose capabilities, it can shut the gate on harmful sounds like workplace noise, and can also welcome sounds like music and voices with perfect fidelity, while eliminating the associated risk of noise-induced hearing loss. Technological advances in the hearing protection, hearing aid, and personal electronics fields presently lack the last piece of the puzzle -- an interface that can deliver sounds the way these products are capable of shaping them. Sonomax's scientifically proven proprietary expansion technology is that last piece of the puzzle - a comfortable, instant-fit, custom-made earpiece that delivers a perfect acoustic seal every time, along with Sonomax's proprietary SonoPass® computer-generated proof of performance. Sonomax's SonoPlatform™ is the foundation for state-of-the-art hearing aids and digital wireless applications, which the Company plans to introduce in 2006 via a new paradigm of quality, affordability, and consumer access.

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
    Sonomax Hearing Healthcare Inc.
    Melony Jamieson
    Media Relations
    (416) 518-6355
    Melony@getitdone.ca
    or
    Sonomax Hearing Healthcare Inc.
    Gordon Aldcorn
    Investor Relations
    (403) 618-6507
    ir@sonomax.com