QYOU Media Completes First Closings of Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TORONTO and LOS ANGELES, Oct. 02, 2019 (GLOBE NEWSWIRE) — QYOU Media Inc. (TSXV: QYOU; OTCQB: QYOUF) (“QYOU” or the “Company”) announced today that it has completed the first tranches of its previously announced (see QYOU news release dated August 30, 2019) non-brokered private placement for aggregate gross proceeds of $1,180,000. The Company issued a total of 23,600,000 units of the Company (the “Units”), at a price of $0.05 per Unit. Each Unit is comprised of one common share in the capital of the Company, one-half of one common share purchase warrant exercisable at $0.06 per share until September 30, 2020 and an additional one-half of one common share purchase warrant exercisable at $0.10 per share until September 30, 2021.The offering also includes a subscription by G. Scott Paterson, Chairman of the Company, for 5,000,000 Units, representing a $250,000 investment.The Company anticipates completing an additional closing of the offering on or about October 8, 2019 of an additional 8,400,000 Units for $420,000 and total aggregate gross proceeds of approximately $1,600,000. The additional closings are subject to the approval of the TSX Venture Exchange.The proceeds derived from the sale of the Units will be used for continued investment in the Company’s subsidiary, QYOU India, and working capital for the Company.The Company paid $68,100 and issued compensation options to acquire up to 1,362,000 Units exercisable at a price per Unit of $0.05 until September 30, 2021, as a finder’s fee to certain persons who assisted the Company in connection with the offering. Subscriptions by insiders of the Company accounted for $250,000 of the gross proceeds of the offering. Participation by insiders in the Offering is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions by virtue of the exemptions contained in Sections 5.5(b) and 5.7(1)(b).All of the securities issuable in connection with the offering are subject to a hold period expiring four months and one day after date of issuance.The securities being offered pursuant to the offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, such securities being offered pursuant to the offering in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About QYOUQYOU Media Inc. is a growing global media company that curates and packages premium content from leading digital video creators for multiscreen distribution. Founded and created by industry veterans from Lionsgate, MTV, and CinemaNow, QYOU’s millennial and Gen Z-focused products including linear television networks, genre-based series, mobile apps, and video-on-demand formats reaches more than 500 million people around the world.
Contact InformationForward-Looking StatementsThis press release contains certain forward-looking statements within the meaning of applicable securities laws. Words such as “expects”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein may include, but are not limited to, information concerning the completion of the offering, the approval of the TSX Venture Exchange of the offering and the listing of certain securities being issued thereunder, the number of Units to be sold by the Company and the expected use of proceeds from the offering. These forward-looking statements are based on QYOU’s current projections and expectations about future events and other factors management believes are appropriate. Although QYOU believes that the assumptions underlying these forward-looking statements are reasonable, they may prove to be incorrect, and readers cannot be assured that the offering and the closing thereof will be consistent with these forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of numerous factors, including certain risk factors, many of which are beyond QYOU’s control. Additional risks and uncertainties regarding QYOU are described in its publicly-available disclosure documents, filed by QYOU on SEDAR (www.sedar.com) except as updated herein. The forward-looking statements contained in this news release represent QYOU’s expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. QYOU undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.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.