VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / September 16, 2014 / Gener8 Media Corp. (CSE: GNR) ("Gener8" or the "Company") is pleased to announce an agreement with Canaccord Genuity Corp. (the "Agent") to perform a brokered private placement. The private placement will be for up to 4,000,000 units (each a "Unit") at a price of $0.75 per Unit (the "Issue Price") for gross proceeds of up to $3 million (the "Offering"). Each Unit will consist of one common share in the capital of the Company (a "Common Share") and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one Common Share at a price of $1.00 for a period of 18 months from the closing of the Offering. The Company has also granted the Agent an over-allotment option to sell up to an additional 2,000,000 Units at the Issue Price, exercisable by the Agent 48 hours prior to the closing date.
Funds raised from the issuance of units are expected to be used for general working capital expenditures across all business units of the Company. Upon closing of the previously announced transaction with Tianjin Fu Feng Da Movie & TV Technology Investment and Development Co., Ltd ("FFD"), any additional funds raised pursuant to the Offering are anticipated to be used for continued development and expansion of the Company's Cumul8 and Reelhouse technologies. The Units will be offered in Canada by way of private placement exemptions and in such other jurisdiction(s) Gener8 and the Agent may agree on, in accordance with applicable law.
Closing of the private placement is anticipated to occur on or before September 30, 2014, and is subject to the receipt of applicable regulatory approvals including approval of the Canadian Securities Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the date of issuance.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Gener8
Gener8 Media Corp. is a media technology company led by a team of gaming industry veterans. At the forefront of postproduction, the Company earned its stripes by developing a proprietary 3D conversion technology, garnering high-profile credits including "300: Rise of an Empire," "Godzilla," and "Maleficent". Gener8 has since expanded into offering visual effects services and a cloud-based data management and analytics solution called Cumul8. With its focus on developing disruptive solutions that combine design and technology, Gener8 funded and then acquired a majority interest in Reelhouse Media Ltd., an online entertainment distribution start-up. Gener8's head office is located in Vancouver, British Columbia and currently has over 200 employees. Visit the company website at www.gener8.com.
ON BEHALF OF THE BOARD OF THE COMPANY
"Rory Armes"
Rory Armes
Chief Executive Officer and Director
FOR MORE INFORMATION, PLEASE CONTACT:
Danielle Rockel
Vice President of Corporate Affairs
[email protected]
604-669-8885
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. In particular, forward-looking statements in this press release include statements with respect to the closing of the brokered private placement and closing of the transaction with Tianjin Fu Feng Da Movie & TV Technology Investment and Development Co., Ltd.("FFD"). Although Gener8 believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: obtaining all necessary regulatory approvals for the transaction with FFD; general economic conditions in Canada and globally; film industry conditions; competition for, among other things, capital and skilled personnel; changes in economic and market conditions that could lead to reduced spending on 3D film conversion; potential delays or changes in plans with respect to deployment of services or capital expenditures; our ability to hire and retain qualified employees and key management personnel; possibility that government policies or laws may change; amount and timing of operating costs and capital expenditures; the ability of the Company to obtain operating capital when needed, the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; reliance on a limited number of suppliers; risks related to the Company's competition; the Company's failure to adequately protect its intellectual property; interruption or failure of information technology systems; the risk that the FFD transaction may not be completed as planned, or at all; and business, legal and/or regulatory risks relating to Gener8's business, financings and strategic acquisitions. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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SOURCE: Gener8 Media Corp.