/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES/
WASHINGTON, Aug. 19, 2015 /CNW/ - Cricket Media Group Ltd. (TSXV:CKT) ("Cricket Media" or the "Company") announces that it is conducting a non-brokered private placement (the "Junior Bridge Loan") of secured convertible debentures in the aggregate principal amount of up to US$2,000,000 (the "Junior Bridge Debentures") and has closed the first tranche and issued Junior Bridge Debentures in the aggregate principal amount of US$819,000. The Junior Bridge Loan will mature on April 30, 2016 and bears interest at a rate of 5% per annum. The Company has the option to pay accrued interest in cash, or by issuing the lenders under the Junior Bridge Loan voting common shares or restricted voting common shares at a price equal to the market price at the time of settlement. The Junior Bridge Debenture are convertible into voting common shares or restricted voting common shares of the Company at the option of the holder at a conversion price of US$0.25 per share. In the event that the Company raises aggregate gross proceeds of a minimum of US$10 million pursuant to an equity financing of preferred shares (the "Financing") and the $5,000,000 bridge loan described in the Company's news release dated July 16, 2015 (the "Existing Bridge Loan"), collectively, all outstanding indebtedness under the Junior Bridge Loan will convert into, at the option of the holder: (A) preferred shares at a conversion price equal to the greater of: (i) 80% of the issue price per share under the Financing; and (ii) US$0.25; or (B) voting common shares or restricted voting common shares at a price of US$0.25 per share, or a combination of (A) and (B) at the holder's option. The Company intends to use the net proceeds of the Junior Bridge Loan to fund operating expenses.
The Junior Bridge Debentures rank junior to the Company's 5% secured convertible debentures in the aggregate principal amount of US$4,000,000 issued under the Existing Bridge Loan, the Company's 6.5% secured convertible debentures in the aggregate principal amount of C$11,999,000 issued pursuant to a trust indenture dated October 19, 2012 and the Company's 10% secured convertible debentures in the aggregate principal amount of C$10,000,000 issued pursuant to a trust indenture dated March 20, 2013. The Junior Bridge Debentures rank pari passu with the Company's 5% secured convertible debentures in the aggregate principal amount of US$1,000,000 issued under the Existing Bridge Loan (the "Existing Junior Bridge Loan"). In the event of the winding up or liquidation of the Company or a sale of all or substantially all of the assets or capital stock of the Company, the principal amount of the Junior Bridge Loan and the Existing Bridge Loan outstanding at such time will be deemed to have increased by 100%, which increased amount will form a secured debt obligation of the Company which will rank pari passu with the principal amount of each of the Junior Bridge Loan and the Existing Junior Bridge Loan as well as the Company's bank indebtedness.
The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from those registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
All securities issued pursuant to the first tranche of the Junior Bridge Loan are subject to a four month hold period expiring on December 19, 2015.
About Cricket Media
Cricket Media (TSXV: CKT) is an education media company that provides award-winning content on a safe and secure learning network for children, families and teachers across the world. Cricket Media's 14 popular media brands for toddlers to teens include Babybug, Ladybug, Cricket® and Cobblestone® with multiple language editions and apps in English, Spanish and Chinese. The Company's innovative web-based K12 tools for school and home include the ePals community and virtual classroom for global collaboration as well as In2Books®, a Common Core eMentoring program that builds reading, writing and critical thinking skills. Cricket Media serves approximately one million classrooms and millions of teachers, students and parents in over 200 countries and territories through its platform and NeuPals, its joint venture with China's leading IT services company Neusoft. Cricket Media also licenses its content and platform to top publishing and educational companies worldwide. For more information, please visit www.Cricketmag.com, www.ePals.com and www.In2Books.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive therefrom. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
SOURCE Cricket Media Inc.
For further information: Aric Holsinger, Chief Financial Officer, Cricket Media, Phone: (703) 885-3400, [email protected]; Cory Pala, Investor Relations, E.vestor Communication Inc., Phone: (416) 657-2400, [email protected]