Network Media closes private placement, debt settlement

Executive Summary

• Network Media Group Inc. closed a non‑brokered private placement of convertible debentures, raising $650,000 in gross proceeds.
• The debentures bear 12 % annual interest, mature 24 months after issuance, and are convertible at $0.50 per share.
• The company settled $350,000 of debt to certain directors by issuing 1.15 million common shares at a deemed price of $0.15 per share, subject to TSX‑V approval and statutory hold periods.

Key Details

• Convertible Debentures
• Gross proceeds: $650,000.
• Interest rate: 12 % per annum.
• Maturity: 24 months from issuance date.
• Conversion price: $0.50 per share; conversion may be elected by holders at any time prior to maturity.
• Securities subject to a statutory hold period of four months and one day.

• Closing contingent on final TSX Venture Exchange approval.

• Debt Settlement with Directors

• Debt amount settled: $350,000.
• Consideration: issuance of 1.15 million common shares at a deemed price of $0.15 per share.
• Transaction classified as non‑arm’s‑length related‑party transaction under MI 61‑101; exemption relied upon because the value does not exceed 25 % of market capitalization.
• No new control person or insider created.

• Settlement shares also subject to a statutory hold period of four months and one day and require TSX Venture Exchange approval.

• Use of Proceeds

• Funds from the debenture offering will be used for general administrative purposes and to settle existing debt (including the $350,000 director debt).

Notable Quotes

(No direct quotes were provided in the release.)