Verb Exchange Inc.

September 24, 2007 12:55 ET

Verb Exchange Closes $1.725 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2007) - Verb Exchange Inc. ("Verb") (TSX VENTURE:VEI) is pleased to announce that it has closed a non-brokered private placement of 17,250,000 units at a price of $0.10 per unit for gross proceeds of $1,725,000. Each unit is comprised of one common share and one share purchase warrant, entitling the holder to acquire an additional common share at a price of $0.20 per share on or before September 21, 2008, and $0.30 per share thereafter, until September 21, 2009. The expiry date of the warrants is subject to acceleration in the event the shares trade at $0.30 or greater for 10 consecutive days in the first year or $0.40 or greater in the second year.

The proceeds from the financing will be utilized to:

- aggressively market and acquire additional subscribers to the CoPilot Console platform

- launch International VE Mobile "VE Mobi"

- command high revenue advertising fees through rich refined analytics deployment

- improve competitive differentiation through superior market understanding

"CoPilot Beta showed organic growth of 50,000 subscribers in the first 3 months, without a single marketing effort," said Craig Goldenberger - Verb Exchange CEO. "Verb Exchange is perfectly positioned to execute and achieve substantial revenue growth from CoPilot. In addition to service revenues, CoPilot will command high value targeted advertising through our rich decision level analytics - enabling Verb and its partners to track, understand, manage and profit on information acquired about our user base. We are also confident that the market will embrace VE Mobi, which will be launched later this year. This new service offering will bridge the current mobile universal communications gap."

Verb paid commissions of $97,600 and issued 1,020,943 compensation options on the private placement. Each option permits the holder to acquire one common share in the Company at a price of $0.10 per share for a period of one year. Verb also settled an aggregate of $600,000 in debt through the issuance of 6 million common shares. All securities issued in the private placement and debt settlement are subject to a hold period ending on January 22, 2008.

About Verb Exchange:

Verb Exchange is a digital media company simplifying communications

This year, Backbone Magazine and The Globe and Mail ranked Verb Exchange Inc. as the #1 Canadian Tech Company for showing the most significant performance increase year on year.

Verb's applications reduce costs, save time, increase mobility, flexibility and overhead without compromising quality. Expatriates, mobile professionals, business focused on being responsive and flexible and non-profit organizations use us.

Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.

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

Contact Information

  • Verb Exchange Inc.
    Aron Buchman
    Director Strategic and Corporate Development
    1-866-824-3454 (Telephone and Fax)
    Arlen Hansen
    Investor Relations
    1-866-568-9528 (Telephone and Fax)