News Column

iSIGN Media Announces Bridge Financing

July 21, 2014



ENP Newswire - 21 July 2014

Release date- 18072014 - TORONTO, ONTARIO - iSIGN Media Solutions Inc. (TSX VENTURE: ISD) (OTCQX: ISDSF), a leading provider of interactive mobile advertising solutions that serves advertisers, manufacturers, retailers and advertising agencies throughout North America, announced that it intends to complete a bridge financing by way of private placement of unsecured convertible promissory notes, for aggregate gross proceeds of $1.5 million.

The Notes will have a term of three months (subject to adjustment upon certain events, as discussed in further detail below), and will accrue interest at a rate of 8% per annum, payable upon maturity.

The principal amount and all accrued and unpaid interest then outstanding under the Notes shall automatically be converted into units of the Company (the 'Units') at a price equal to $0.25 per Unit upon closing of the acquisition of all of the issued and outstanding shares of P.O.S. Canada Inc. ('POS Canada') by the Company (the 'Acquisition'). Each Unit shall be comprised of one common share of the Company (a 'Unit Share') and one common share purchase warrant (a 'Warrant').

Each Warrant shall be exercisable to acquire one common share of the Company (a 'Warrant Share') for a period of two years following the date of issuance of the Warrant at an exercise price of $0.50 per Warrant Share, subject to adjustment in certain events. The Unit Shares and Warrants (and, if applicable, the Warrant Shares) will be subject to a minimum hold period of 4 months from the date of issue of the Notes.

In the event that, prior to the maturity of the Notes, either (i) the memorandum of agreement dated May 28, 2014 between the Company and POS Canada in respect of the Acquisition is terminated, (ii) the definitive agreement to be entered into by the Company and POS Canada in respect of the Acquisition (the 'Definitive Agreement') is not signed by the parties on or before July 31, 2014 or (iii) the Definitive Agreement is terminated in accordance with its terms prior to the closing of the Acquisition, all obligations under the Notes shall, at the option of the holders of the Notes, accelerate and become forthwith due and payable, subject at all times to approval of the majority of the purchasers of the Notes.

The Company anticipates closing the private placement as soon as practicable, subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The proceeds from the sale of the Notes will be used for software development, operations and product manufacturing.

One of the proposed purchasers of the Notes, Korona Group Inc. ('Korona'), is a 'related party', as such term is defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ('MI 61-101'), of iSIGN, holding approximately 10.4% of the issued and outstanding common shares of the Company. As such, the issuance of Notes to Korona is a 'related party transaction' for the Company.

For this transaction, the Company has relied on the exemption from the formal valuation requirements of MI 61-101 contained in section 5.5(a) of MI 61-101 and has relied on the exemption from the minority shareholder approval requirements of MI 61-101 contained in section 5.7(a) of MI 61-101.

About iSIGN Media

Since 2007, iSIGN has been developing multiplatform advertising and marketing solutions for brands to better attract, engage and retain customers through their mobile devices. The data and SaaS (software as a service) company collects and analyzes shopper preferences so that brands can deliver targeted messaging and personalized offers to consumers' mobile devices, in-location and in real-time.

The Company's interactive proximity-marketing technology is capable of gathering average price points, typical purchases, in-store dwell times and other shopper metrics to deliver business intelligence and insights into emerging consumer behaviours that can help brands make better business decisions and measure their marketing efforts.

Utilizing Bluetooth and Wi-Fi, and location-aware technologies to deliver relevant and timely messaging to any screen or mobile device, iSIGN delivers rich media, permission-based messages free to consumers that can drive immediate brand engagement, increased customer loyalty and deliver higher ROI on marketing dollars spent.

Headquartered in Richmond Hill, Ontario, with R&D and customer support operations in Vancouver, BC and Tampa, FL, the Company has also grown to become the largest owner-operator of in-store digital media in Canada with 5,600 digital signs in about 1,400 locations. Partners include: IBM, Keyser Retail Solutions, Baylor University, Verizon Wireless, TELUS and AOpen America Inc., with solution distribution by GraphicMedia, Inc. and BlueStar Inc.

Forward-Looking Statements

This news release may include certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with iSIGN Media's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions 'anticipate', 'believe', 'plan', 'estimate', 'expect', 'intend' and similar expressions to the extent they relate to the Company or its management.

The forward-looking statements are not historical facts, but reflect iSIGN Media's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. iSIGN Media assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Media Contact:

Emily Storz

Tel: 267-758-2642

Email: estorz@sspr.com

Investor Contact:

Trevor Brucato

Tel: 1-212-661-7771

Email: tbrucato@rbmilestone.com


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Source: ENP Newswire


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