1.  This still requires Venture Approval.  Ball in your court Venture.

 

2.  These can be redeemed at any time by INT should they acquire better financing.

 

TORONTO, CANADA--(Marketwire - Jan. 24, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) is pleased to announce the completion of the non-brokered private placement of units (the "Offering") previously announced on December 14, 2012.

Upon closing of the Offering, 2,525 units ("Units") were issued at a price of $1,000 per Unit, with each Unit consisting of a $1,000 principal amount of secured convertible debentures (the "Debentures") and 8,333 common share purchase warrants (the "Warrants"), for gross proceeds to the Company of $2,525,000. Each Warrant entitles the holder thereof to purchase one common share for a two year period from the date of issuance at an exercise price of $0.125 per common share. The Debentures bear interest at a rate of 12% per annum, are payable bi-monthly and will run for a term of two years. The Debentures are secured against the assets of the Company and rank pari passu with certain other debentures issuable by the Company. The Debentures are convertible, in whole or in part, at the option of the holder, for common shares at a price of $0.12 per common share for a period of two years from the date of issuance of the Debentures, and may be redeemed by the Company at any time.

In connection with the Offering, the Company paid a cash finder's fee of $33,840 and issued 281,988 finder's warrants ("Finder's Warrants"). Each Finder's Warrant will entitle the holder to purchase one common share (a "Finder's Warrant Share") at a price of $0.12 per Finder's Warrant Share for a period of two years from the date of issuance of the Finder's Warrants.

All securities issued in connection with the Offering are subject to a four-month hold period, expiring May 25, 2013.

The Company anticipates using the proceeds from the Offering for general working capital and US expansion initiatives for Intertainment and its subsidiaries. The Offering is subject to final regulatory approval.