i-Sign Media Solutions Inc. (ISDSF)

[petunia1]

iSign arranges $2-million private placement

2010-10-06 06:55 PT - News Release
Shares issued 36,717,472
ISD Close 2010-10-05 C$ 0.20


Mr. Alex Romanov reports

ISIGN MEDIA SOLUTIONS INC. ANNOUNCES NEW PROPOSED PRIVATE PLACEMENT OF UNITS

iSIGN Media Solutions Inc. has entered into an agreement with Byron Securities Ltd. as agent to complete a best efforts private placement financing to raise up to $2,000,000. Pursuant to the engagement agreement with the Agent, the Brokered Offering will be comprised of up to 10,000,000 units ("Units") of the Company at a price of $0.20 per Unit, each Unit comprised of one common share of the Company and one-half of one common share purchase warrant ("Warrant"), with each whole Warrant exercisable into a common share of the Company at an exercise price of $0.30 for a period of 24 months.

The closing of the Brokered Offering is expected to occur on or about October 22, 2010 and is subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange.

The Company has agreed to pay the Agent a cash commission of 10% of the gross proceeds of the Brokered Offering and to issue broker warrants entitling the Agent to purchase that number of Units equal to 10% of the number of Units sold pursuant to the Offering. Such broker warrants will be exercisable at any time until the 24 month anniversary of their issuance at a price of $0.20 per Unit.

The Company has also arranged for a non-brokered offering (the "NB Offering") of up to 1,250,000 Units at an issue price of $0.20 per Unit, for gross proceeds of up to $250,000. In connection with the NB Offering, the Company has agreed to pay finders a cash commission of 10% of the gross proceeds arranged for by such finders and finder warrants entitling such finders to purchase that number of Units equal to 10% of the number of Units sold pursuant to the NB Offering. Such finder warrants will be exercisable at any time until the 24 month anniversary of their issuance at a price of $0.20 per Unit.

The closing of the NB Offering is expected within a week and is subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange.

Proceeds of the Offering and the NB Offering will be used to fund general working capital, including marketing, and research and development.

The Company has also cancelled its previously announced financing (dated July 21, 2010) and put option with easyAd Group AG (dated September 27, 2010).