SoMedia
Networks (TSX-V:VID), the pioneer of cloud-based scalable video
production solutions, today announced it has, further to a press release
dated July 18, 2014, August 22, 2014 and September 30, 2014, closed a
non-brokered private placement (the “Private Placement”) with the
issuance of 4,456,250 Units (the “Units”) at a price of $0.16 per Unit
for total gross proceeds of $713,000. The Units being issued will
consist of one common share and one half of one share purchase warrant
(the “Warrants”), each whole Warrant entitling the holder to purchase an
additional common share at a price of $0.25 per share until October 7,
2016.
SoMedia also announced that it had engaged U.S Investment bank Scarsdale
Equities LLC ("Scarsdale”). Specializing in providing investment-banking
services to entrepreneurial, high growth companies in the U.S., and
Canada, Scarsdale has been engaged as a capital markets advisor and to
assist the Company with a U.S. listing and M&A activities.
Scarsdale Equities LLC is an institutional FINRA member broker/dealer
and SIPC member with offices in New York, NY, and San Francisco, CA.
Scarsdale Equities LLC focuses on emerging growth companies, lower
middle-market, middle-market & unique early stage firms providing
services including capital formation and corporate advisory assignments.
The founding partners of Scarsdale Equities LLC are respected veterans
of the U.S. financial services industry with solid track records as
investors, analysts, and investment bankers.
In connection with the Private Placement, the Company paid finder's fees
of $10,320 and issued 32,250 finders’ warrants (“Finder’s Warrants”) to
Canaccord Genuity Corp. and Larry Davis. Each Finders’ Warrant entitles
the holder to purchase one common share of the Company at a price of
$0.16 per Share until October 7, 2016.
The Company intends to use the net proceeds of the Private Placement for
general working capital. All securities issued in connection with the
Private Placement are subject to a prescribed four-month hold and
restricted trading period pursuant to applicable securities laws ending
on February 8, 2015.
About SoMedia Networks
SoMedia Networks, the creator of Scalable Video, has reengineered how
businesses access video content creation and production. The cloud-based
SoMedia Platform allows businesses to easily order the production of
custom video content at scale and volume, anywhere, on demand, with
rapid turnaround, and at a fraction of current costs.
SoMedia provides Scalable Video as an integrated solution together with
advanced video players, analytics and campaign management tools to
corporate partners, as a resale solution through thousands of web
marketing firms and directly to digital agencies and millions of SMBs
across North America. To learn more visit: www.somedia.net.
This news release includes forward-looking statements that are
subject to risks and uncertainties. All statements within, other
than statements of historical fact, are to be considered forward looking.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
or developments may differ materially from those in forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market
prices, continued availability of capital and financing, and general
economic, market or business conditions. There can be no
assurances that such statements will prove accurate and, therefore,
readers are advised to rely on their own evaluation of such
uncertainties. We do not assume any obligation to update any
forward-looking statements. This news release does not constitute an
offer to sell or a solicitation of an offer to sell any securities in
the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as amended
(the “U.S. Securities Act”) or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities
laws or an exemption from such registration is available
Copyright Business Wire 2014