Multiplied Media announces closing of $5,000,000 private placement

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CALGARY, March 26 /CNW/ - Multiplied Media Corporation (the "Company") (TSX-V: MMC), a leading provider of mobile local search services, today announced the closing of the previously announced private placement financing agreement with a syndicate of underwriters led by Dundee Securities Corporation and including Stonecap Securities Inc., Clarus Securities Inc., Desjardins Securities Inc. and Mackie Research Capital Corporation (the "Underwriters"). Pursuant to the agreement, the Underwriters purchased, on a bought deal private placement basis, 20,000,000 common shares of the Company priced at $0.25 per common share, for total gross proceeds of $5,000,000 (the "Offering").

The cash fee paid to the Underwriters was seven percent (7%) of the gross proceeds of the Offering, excluding proceeds derived from the president's list. The Underwriters also received broker warrants entitling the agents to subscribe for up to 1,384,109 common shares at an exercise price equal to $0.25 per common share, for a period of 24 months following the date hereof.

The Company intends to use proceeds of the Offering for promotion and marketing of the Company's products to increase awareness and grow the user base; development and deployment of the Company's existing products on additional smartphone platforms; releasing the Company's products into new geographic areas; development and integration of newly acquired UnoMobi's products; and, for general working capital purposes.

The securities issued under the Offering are subject to a four-month hold period from the date of distribution.

    
    About Multiplied Media Corporation
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Multiplied Media (www.multiplied.com) develops and operates mobile applications that enhance the consumers' ability to connect with the people and businesses most important to them. Their multi-award-winning application Poynt (www.poynt.com) is a mobile local search service available over BlackBerry smartphones and iPhone and iPod Touch devices. Through agreements with directory and vertical content providers in Canada, the United States and Europe, Poynt simplifies finding and connecting with businesses, retailers and events wherever and whenever it is most convenient for the consumer. The MyInboxNow offering, from newly acquired UnoMobi (www.unomobi.com), enables low-end feature phones to behave like smartphones for email access. MyInboxNow is available to mobile operators as a private label solution. Headquartered in Calgary, AB, Canada, Multiplied Media trades on the TSX Venture Exchange under the symbol MMC.

    
    Forward Looking Statement
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This news release contains forward-looking statements relating to the private placement financing and other statements that are not historical facts, including the use of proceeds of the Offering. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The results or events predicated in these forward-looking statements may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on these forward-looking statements.

These forward-looking statements are based on certain key assumptions regarding, among other things: state of the economy in general and capital markets in particular, and investor interest in the Company's business and future prospects. Material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: the risk that the intended use of the net proceeds of the offering by the Company might change if the board of directors of the Company determines that it would be in the best interests of the Company to deploy the proceeds for some other purpose; the deterioration of economic and market conditions that could lead to reduced spending on information technology products; competition in the Company's target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products and fee structures; the success of the Company's brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; the need to develop new and enhanced products; potential product defects; the Company's ability to hire and retain qualified employees and key management personnel; and risks associated with changes in domestic and international market conditions and the entry into and development of new for the Company's products.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on expectations of, or statements made by, third parties in respect of the proposed private placement financing.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from those registration requirements.

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.

For further information: Raymond Ng, Director, Investor Relations, Multiplied Media Corporation, [phone], [email protected]