Company Raises $1.275mil with $375k by Insiders
TORONTO, Oct. 3, 2012 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTCBB: YOOIF), the industry's leading secure digital media management company is pleased to announce that the second and final phase ("Phase 2") of YANGAROO's Private Placement has closed, raising aggregate gross proceeds of $1,275,000 between Phase 1 and Phase 2, with $375,000 invested by company insiders.
Phase 2 raised proceeds of approximately $931,000, in respect of which 18,624,348 units ("Units") were subscribed for at a price of $0.05 per Unit. Each Unit consists of one common share and one warrant, entitling the holder to purchase one additional common share of YANGAROO at $0.10 and expiring on October 3, 2015. All securities issued in connection with Phase 2 will be subject to a four-month hold period. Phase 2 is subject to final approval from the TSX Venture Exchange (the "Exchange").
Fraser Mackenzie Limited (the "Agent") acted as the agent for the Private Placement and will receive In consideration for its services a cash commission equal to approximately $99,500 and will be issued 738,000 Agent's warrants (the "Agent's Warrants") entitling the Agent to purchase 738,000 common shares at an exercise price of $0.10 per share, for a period of two years from the closing date of Phase 2.
As a result of closing the Private Placement and achieving the minimum threshold of $1,250,000, the existing debenture holders of YANGAROO have consented to the amending of their existing debenture agreements. The key amendments include lowering the interest rate from 18% to 14% and extending the repayment date of the existing debentures for an additional three years, all as of the closing date of the Private Placement. The interest will accrue throughout the amended term and is payable with the redemption of the principal portion of the debenture.
"The closing of this financing provides the working capital required for achieving profitability," said Gary Moss, President and CEO of YANGAROO. "It allows management to focus on achieving its business objectives. We will continue to invest in revenue producing areas of the business, maintaining the momentum of the past 12 months. I would like to thank our new and existing shareholders, as well as the debenture holders and insiders for their support," Moss added.
YANGAROO is a company dedicated to digital media management. YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO 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.
SOURCE: YANGAROO Inc.
For further information:
Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.