MONTREAL, Nov. 10, 2010 (GLOBE NEWSWIRE) -- Hipso Multimedia Inc. (OTCBB: HPSO) is pleased to announce that is has engaged Notre-Dame Capital Inc. to raise $15 million (USD) through an equity and debt financing on a best efforts basis.
The debentures will be offered in tranches of $50,000 and will bear interest at a rate of 8% per annum, payable quarterly in arrears, and maturing five years from the date of issuance. The principal amount of each debenture will be convertible into common shares of the Corporation at the option of the holder. The conversion price will be $0.25 per share for the first two years from the date of issuance, and thereafter at a price per share of $0.30 until maturity.
The securities will be offered by Notre-Dame Capital Inc. to subscribers qualifying as "accredited investors" or otherwise on a prospectus-exempt basis in those jurisdictions where the private placement may be offered for sale by Notre-Dame Capital Inc.
In connection with the financing, Notre-Dame Capital Inc. will receive a cash fee equal to 8% of the gross proceeds raised under the equity offering plus 4% in warrants of the raised funds. Each warrant entitling Notre-Dame Capital to purchase one common share of Hipso Multimedia. The warrants will be exercisable at the financing price for a period of 36 months after the closing of the financing.
The gross proceeds from the placement of the financing will be used for working capital, marketing, and other corporate purposes including the building of Hipso's new IPTV Network based on the Ericsson platform.
In addition to the above-mentioned proposed private placement, Notre-Dame Capital Inc. and its affiliates have purchased 3 million common shares of the Corporation from the directors of the company.
The financing is subject to approval by the Board of Directors of Hipso Multimedia, and regulatory approval. The securities issued in connection with the private placement and Hipso agrees to file appropriate filing statements as per Canadian and US securities legislation.
About Hipso Multimedia Inc.
Hipso Multimedia, Inc., through its wholly owned subsidiary Valtech Communications Inc. provides cutting edge technology and service in the triple play telecommunications industry. It intends to become a major force in the IPTV (Internet Protocol Television Broadcasting) arena.
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Hipso Multimedia is listed on the OTC Bulletin Board under the symbol HPSO and its financial statements are filed on the EDGAR database online ().
ON BEHALF OF THE BOARD
Rene Arbic
President & CEO
The Exchange does not accept responsibility for the adequacy or accuracy of this release.
CONTACT: Hipso Multimedia Inc. Investor Relations Contact Andrew Barwicki 516-662-9461 andrew@barwicki.com