TORONTO, April 17, 2012 /CNW/ - YANGAROO Inc. (TSX-V: YOO) (OTC: YOOIF), the industry's leading secure digital media distribution company, is pleased to announce a private placement of a minimum of $1,250,000 and up to a maximum of $2,000,000 in units. Each unit will consist of one common share in the capital stock of YANGAROO and one warrant, entitling the subscriber to purchase an additional share at $0.10 per share within 36 months of closing. YANGAROO will issue the units at $0.05 per unit, resulting in the issue of a minimum of 25,000,000 shares and up to a maximum of 40,000,000 shares upon closing, non-diluted. This is a partially brokered private placement. The Company currently has commitments for the minimum amount of the raise ($1.25mm) which is expected to close on or about April 18, 2012.
The Company will pay an agent's fee to Fraser Mackenzie Limited on their portion of the raised proceeds, and will pay a finder's fee to certain other parties that assisted in the private placement. The net proceeds from the private placement will be used for general working capital. The proposed financing has been submitted to the TSX Venture Exchange ("TSX-V") for conditional approval, and is subject to TSX-V final approval.
The Company and the Board of Directors are pleased to announce that they have received overwhelming approval from Debenture holders to amend all of the existing debentures, by extending the timeline for repayment for an additional 36 months, and reducing the interest rate payable on the outstanding indebtedness (the "Debenture Amendment"), from 18% to 14%. Details of the Debenture Amendment can be found on SEDAR, at www.sedar.com
"The combination of the new financing and the restructured debt gives YANGAROO the financial flexibility to drive towards substantial growth and profitability," said Gary Moss President and CEO, YANGAROO Inc. "We are encouraged that the majority of the participants in the private placement are new investors in YANGAROO. Their endorsement, combined with the continued support from existing stakeholders, validates our vision for the company."
YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS replaces the physical distribution of audio and video content for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet. The DMDS Awards platform powers many of North America's major awards shows.
Named one of Canada's Top 100 Tech Companies by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and Dallas. 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. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information:
please contact Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.