TORONTO, ONTARIO--(Marketwired - May 30, 2014) - YANGAROO Inc. (TSX VENTURE:YOO)(OTCBB:YOOIF), the industry's leading secure digital media distribution company (the "Company"), is pleased to announce that it has completed the brokered private placement financing (the "Private Placement") of common shares (the "Shares") sold at a price of $0.30 per Share, as was previously announced in a news release dated May 5th, 2014 (the "May 5 Release"). The Company announces that it has surpassed the minimum amount of the Private Placement, raising gross proceeds of CAD $2,471,000.70 (the "Proceeds"), which the Company will use primarily to repay existing indebtedness in the form of debentures, as announced in the May 5 Release. The Company issued 8,236,669 Shares pursuant to the Private Placement.
The Company is further pleased to announce, subject to regulatory approvals, a second and immediate brokered private placement (the "New Private Placement") to raise a minimum of $750,000 (the "Minimum Amount") and up to $2,000,000 through the issuance of a minimum of 2,500,000 and up to 6,666,667 common shares (the "New Shares") at a price of $0.30 per New Share.
The proceeds of the New Private Placement (the "New Proceeds") will be used primarily for working capital and accelerating growth in the advertising division.
YANGAROO has engaged Global Maxfin Capital Inc. (the "Agent") to act as lead agent in connection with the New Private Placement. YANGAROO will pay to the Agent, and any and all sub-agents and/or finders, a total of up to 7% cash compensation and up to 7% in compensation options (the "Compensation Options"), based on that portion of the Proceeds raised by the Agent, sub-agent and/or finders, the Compensation Options entitling the holder to subscribe for common shares of the corporation on the same terms as the New Private Placement, being $0.30 per Share, for a period of 24 months from closing.
All the securities issuable will be subject to a four-month hold period from the date of issuance. The Private Placement is subject to the approval of the TSX Venture Exchange.
YANGAROO is a company dedicated to digital media management. YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America's major awards shows.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.