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smartbiz85

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Alias Born 08/23/2003

smartbiz85

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Friday, 10/08/2004 5:24:21 PM

Friday, October 08, 2004 5:24:21 PM

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iMedia Closes on $7.6 Million Stock Purchase Agreement with London Investment Trust
Friday October 8, 8:18 am ET


SANTA MONICA, Calif., Oct. 8, 2004 (PRIMEZONE) -- iMedia International, Inc. (Other OTC:IMNL.PK - News) In a transaction valued at $7.6MM, iMedia International announces the closing of a private placement of 4,000,000 of its common shares at the price of $1.90 per share with Langley Park, PLC, a London-based investment trust listed on the London Stock Exchange.
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In lieu of cash, the investment trust purchased the shares with 4,185,122 shares of its free-trading common stock. At the time of the transaction, the trust's shares were valued at 1.00 pounds per share (US$1.81). The public market price of these shares varies on a day-to-day basis subject to market conditions and the value of the trust's underlying portfolio.

Pursuant to the terms of the agreement, the trust may not sell, transfer or hedge against the iMedia shares for a period of two years. In addition, iMedia has agreed to place in escrow 50% of the trust's shares as downside protection for the trust in the event iMedia's stock is trading at less than $1.90 per share upon the expiration of the two-year lock-up term. iMedia would then be obligated to return some portion of the escrowed shares to make up for any difference between the purchase price and the market price of its common stock at the end of two years.

``This placement represents the largest single investment in our company to date. We are very pleased that we were able to negotiate a restriction prohibiting the trust from selling or hedging against our shares for the next two years. This gives us a very nice window to grow our company and increase revenues without the worry that these shares will immediately flood the market,'' says David MacEachern, CEO of iMedia International. ``It is our goal to obtain a listing on the AMEX or the NASDAQ Small Cap market. We now have a substantial balance sheet asset that will help us meet the net asset requirements for listing on these exchanges.''

The Company intends to immediately liquidate a portion of the trust shares for cash for operations, and use the balance as collateral for various future credit lines and facilities.

A full description of the transaction, terms and Stock Purchase Agreement is available in the Company's public filings.

http://biz.yahoo.com/pz/041008/65232.html



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