May 13 annouced first tranche closed INTERTAINMENT ANNOUNCES CLOSING OF FIRST TRANCHE OF
SPECIAL WARRANT FINANCING
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
TORONTO, CANADA – May 13, 2011 – Intertainment Media Inc. ("Intertainment" or the
"Company") (TSXV: INT / US: ITMTF / FRA: I4T) is pleased to announce that it has completed the first
tranche of its previously announced non-brokered private placement (the “Offering”) of special warrants
(each a "Special Warrant"). The Company issued 19,760,271 Special Warrants at a price of $1.20 per
Special Warrant for gross proceeds of $23,712,326.60 in this first closing. Each Special Warrant is
exchangeable, for no additional consideration, for one common share in the capital of Intertainment
(each a "Common Share") and one-half of one common share purchase warrant (each a "Warrant").
It is anticipated that the net proceeds of the Offering will be used to accelerate the Company’s core new
media offering, including Ortsbo, Ad Taffy and itiBiti (KNCTR), potential acquisition opportunities and for
working capital purposes.
Directors and officers of the Company acquired 1,024,090 Special Warrants for gross proceeds of
approximately $1,228,908 pursuant to this first tranche of the Offering. The Company has determined
that exemptions are available for the various requirements of TSX Venture Exchange Policy 5.9 and
Multilateral Instrument 61-101 for the issuance of the Special Warrants to insiders of the Company.
“This first tranche comes at a very strategic time for the Company as its products and program have fully
commercialized. Today’s closing shows the strength of our investor’s commitment to Intertainment,” said
David Lucatch, CEO of Intertainment Media Inc. “The Company received over $4.7 Million in excess
commitments from the originally announced first tranche round of $28 Million, but chose to only close on
the announced proceeds, as we have a strong commitment to close an additional $20 Million from a US
based fund, should we choose to do so. The additional capital infusion gives the Company the ability to
assess and review potential merger and acquisition opportunities.”
The Special Warrants issued pursuant to this first tranche will expire on the earlier of (i) the date of
issuance of a receipt being issued in respect of a final prospectus filed in certain Canadian jurisdictions
(the "Prospectus") qualifying the securities issuable upon exchange of the Special Warrants; and (ii)
September 14, 2011. Each Special Warrant is subject to statutory resale restrictions and, absent the
clearing of the Prospectus in Canada, neither the Special Warrants nor the underlying securities may be
traded in Canada during the period ending on September 14, 2011 except in accordance with applicable
securities legislation and TSX Venture Exchange policies.
Each whole Warrant will entitle its holder to purchase one additional Common Share for $2.00, expiring
on May 13, 2013. In the event that the Common Shares trade at a closing price on the TSX Venture
Exchange of $4.00 or higher for a period of 15 consecutive trading days at any time after September 14,
2011, the Company may accelerate the expiry date of the Warrants by giving notice to holders thereof
and in such case the Warrants will expire on the 30th day after the date on which such notice is given by
the Company.
Finders acting in connection with this first closing of the Offering received a finder's fee in the total
aggregate amount of approximately $356,991 and 297,493 finder’s options (“Finder’s Options”). The