iSign Media Solutions completes $767,040 placement

2010-11-30 11:00 PT - News Release
Shares issued 39,682,472
ISD Close 2010-11-29 C$ 0.205

Mr. Alex Romanov reports

ISIGN MEDIA SOLUTIONS INC. COMPLETES PRIVATE PLACEMENT

iSign Media Solutions Inc. has closed a private placement that was previously announced in Stockwatch on Oct. 6, 2010, raising gross proceeds of $767,040. The private placement consisted of a brokered portion with Byron Securities Limited as agent and a non-brokered portion.

iSign completed the brokered portion of the private placement on Nov. 26, 2010, by issuing two million units at a price of 20 cents per unit for total gross proceeds of $400,000. Each unit consists of one common share in the capital of iSign and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at an exercise price of 30 cents per share until Nov. 26, 2012. All securities are subject to a four-month hold period.

In connection with the closing of the brokered portion of the private placement, the agent received a cash commission equal to 6.3 per cent of the gross proceeds realized by the company from the brokered portion of the private placement. As additional compensation, the company also issued 143,750 non-transferable compensation options. Each compensation option entitles the holder thereof to acquire one unit at a price of 20 cents per compensation option held, until Nov. 26, 2012.

The company also wishes to announce the closing of the first tranche of the non-brokered portion of the private placement for total gross proceeds of $367,040. The company completed the first tranche on Nov. 30, 2010, by issuing 1,835,200 units at a price of 20 cents per unit. Each unit consists of one common share in the capital of iSign and one-half of one warrant. Each whole warrant entitles the holder thereof to acquire one common share at an exercise price of 30 cents per share until Nov. 30, 2012. All securities are subject to a four-month hold period. It is expected that the company will complete a second tranche of the non-brokered portion of the private placement by Dec. 15, 2010.

In connection with the closing of the first tranche, the company paid cash commissions equal to 10 per cent of the gross proceeds realized by the company from the first tranche of the non-brokered portion of the private placement. As additional compensation, the company issued finder's warrants equal to 10 per cent of the units sold pursuant to the first tranche of the non-brokered portion of the private placement to arm's-length parties. Each finder's warrant entitles the holder thereof to acquire one unit at a price of 20 cents per unit per finder warrant held, until Nov. 30, 2012. All securities are subject to a four-month hold period.

The proceeds of the private placement will be used by the company to finance general working capital, including marketing and research and development.