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TORONTO, Dec. 24 /CNW/ - YANGAROO Inc. ("YANGAROO" or the "Company") (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, is pleased to announce that it intends to raise up to $1,140,000 through a private placement of up to $1,140,000 of Convertible Debentures. The Debentures have an eighteen month term, interest free for six months and thereafter interest is payable semi-annually at 15% per annum, are secured by a general security agreement over the assets of the Company and are convertible into common shares of the Company at $0.10 per share. The Company has retained Fraser Mackenzie Limited as Lead Agent and Brimberg & Co. as Agent to complete the offering on a best efforts basis. Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the acceptance of the TSX Venture Exchange. The proceeds of the offering will be used for continued expansion of marketing and sales and other general working capital purposes. Scott Wambolt, the Company's CEO, will be participating in the offering and purchasing $100,000 of the total debenture offering.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdictions in which such offer, solicitation or sale would be unlawful. Any offering made will be pursuant to available prospectus and registration exemptions and restricted to persons to whom the securities may be sold in accordance with the laws of such jurisdictions and by persons permitted to sell the securities in accordance with the laws of such jurisdictions.
YANGAROO has agreements with key music video broadcasters in Canada and the United States and has installed its patented Digital Media Distribution System (DMDS) to allow them to receive broadcast quality music videos. YANGAROO is at various stages of discussions and negotiations with television broadcasters and advertising agencies to provide for the delivery of broadcast quality SD and HD television ads beginning in 2011. The Company believes DMDS has set the world standard for the digital delivery of television broadcast-quality content via the Internet and, ultimately, will be the standard for the delivery of a variety of other digital content to broadcasters. YANGAROO will continue to invest funds in building its business to achieve key market and growth targets. The Company's operations are not yet generating positive cash flow, so in future the Company may need to source additional funds in order to fulfil its business objectives.
"We are pleased to have moved forward with this working capital funding before the end of the year" said Scott Wambolt, CEO of YANGAROO.
YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS is a Web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. 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. Named one of Canada's Top 100 Tech Companies for 2009 by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and London, U.K. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under TCBB: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. 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.
For further information: For further information:
Scott Wambolt at (905) 763-3553 or visit www.yangaroo.com/