/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Aug. 27 /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 has completed, with the conditional approval of the TSX Venture Exchange, the private placement of 2,126.5 Units at $1,000 per Unit for gross proceeds of $2,126,500. As previously announced, the Company had anticipated placing up to 1,500 Units for gross proceeds of $1,500,000, however investor demand led the company to increase the size of the offering. Each Unit consists of 20,000 common shares and 10,000 Warrants. The Warrants are exercisable until January 31, 2012, with each whole Warrant entitling the holder to purchase one common share at $0.10. Insiders of the company purchased 120 Units, of which Scott Wambolt, CEO of YANGAROO, acquired 100 Units under his subscription in July. Ingalls & Snyder LLC purchased 1,000 Units and upon closing will own 17% of the issued and outstanding common shares and accordingly be an insider. Fraser Mackenzie Limited acted as a Finder for 1,475 Units and was paid a fee of $102,750 and issued non-transferable warrants to acquire 2,055,000 common shares at $0.10 per share until August 27, 2012. The Company will be making certain filings to satisfy the acceptance requirements of the TSX Venture Exchange. The proceeds of the offering will be used for expansion of marketing and sales and other general working capital purposes.
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.
"The confidence that both U.S. and Canadian investors have shown in our company is very encouraging," said Scott Wambolt CEO, YANGAROO. "The proceeds will enable us to continue the rollout of our sector-leading DMDS 5.0 to the music video, award show and television advertising markets in the U.S., Canada and beyond."
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, award shows 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 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. 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.
SOURCE YANGAROO Inc.
For further information: For further information: Scott Wambolt at (416) 534-0607 or visit www.yangaroo.com/