SANTA MONICA, Calif., May 24, 2005 (PRIMEZONE) -- iMedia International, Inc. (OTCBB:IMNL) (www.imedia-intl.com) announced today that they have successfully closed on the sale of $3,040,000 in units of convertible preferred shares and warrants. The units were sold to a total of nineteen accredited investors including ten institutional funds.
A total of 3,040 units were sold. Each unit consisted of one convertible preferred share convertible into 2,500 common shares, and a five-year warrant to purchase up to 2,500 common shares at $0.60 per share. The preferred shares have a two-year maturity and pay each holder a 6% annual preferred dividend. The Company has the obligation to file a registration statement on the underlying common shares within 45 days.
The lead institutional investor was secured by New York based Atlas Capital, with J.P. Turner and Company also participating as co-placement agents.
The Company intends to use the proceeds of this offering to retire approximately $1.3 million in short-term debt, and use the balance for payables, general and administrative expenses.
For more information, pertinent details and exhibits, please see the Company's public filing on Form 8K, as filed with the SEC on May 24, 2005.
About iMedia International Inc.
iMedia International, Inc. (IMNL) is a publicly held digital media solutions company producing DVD's, and CD-ROM's for digital multimedia marketing and promotional campaigns. iMedia publishes proprietary and custom digital iMagazines and offers expert digital media solutions services including: strategic planning, content aggregation and production, disc audio/video design, authoring, editing and compression, disc packaging manufacturing and distribution. A key feature of iMedia's technology is its iReporting(tm) real-time, online tracking system which provides quantitative data on disc viewer usage patterns and effectiveness of iMedia marketing and promotional campaigns.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, general economic risks and uncertainties, and various other information detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. Please refer to the full filing of the Company's Quarterly Report on Form 10-Q at http://www.sec.gov.