Graniz Mondal Inc. Enters Into Letter of Intent With DigiScreen Corporation
Market Wire, June, 2009
The parties contemplate paying a 5% cash finder's fee in connection with the Graniz Loan from Graniz to DigiScreen, as well as issuing 200,000 Graniz Shares upon completion of the Transaction. This fee will be paid to BID Capital Markets and Bill Rusedski, both of whom are parties who are at arm's length from Graniz and DigiScreen. This fee will be paid to these parties at the closing of the Transaction, in consideration for the services they rendered in introducing Graniz and DigiScreen and otherwise facilitating the agreement between Graniz and DigiScreen regarding the Graniz Loan and the Transaction. If Graniz advances to DigiScreen the full $250,000 or principal that it is making available under the Graniz Loan, the cash finder's fee will be $12,500.
The parties are currently in the process of preparing definitive agreements with respect to the Transaction.
The Transaction is subject to the approval of Graniz's shareholders. In addition, the Transaction, the Graniz Loan, as well as the payment of all finder's fees, are subject to the approval of the TSX Venture Exchange.
Information about DigiScreen
DigiScreen was incorporated under the Canada Business Corporations Act on February 11, 2003. The business of DigiScreen consists in the operation of a digital network for the distribution and presentation of independent films and alternative content. Such alternative content is based on source material other than feature-length movies, such as opera, sports and music-based shows. The presentation of these events could take place in a full spectrum of venues ranging from digital cinemas to handheld media players. DigiScreen principally offers a technical solution that allows a digital video projector to be fed from a server containing various high-definition films stored in compressed format. The digital film content can be delivered to remote cinema sites, via terrestrial or satellite connection. DigiScreen serves customers in the United States, Canada, United Kingdom, Europe, Japan and Australia.
The current shareholders of DigiScreen are as follows:
Name Jurisdiction of Residence/Incorporation ---- --------------------------------------- Daniel Langlois Investments Inc. Incorporated under the Canada Business (a company wholly owned by Daniel Corporations Act Langlois) (925,000 common shares) Mark Hooper Pointe-Claire, Quebec (50,000 common shares) Pierre Latour Town of Mount-Royal, Quebec (25,000 common shares) BDC Capital Inc. (a wholly owned Incorporated under the Canada Business subsidiary of the Business Corporations Act Development Bank of Canada) (353,846 class A preferred)
The following tables set forth selected financial information for DigiScreen for the six month period ended December 31, 2008 (unaudited) and the years ended June 30, 2008 (unaudited), June 30, 2007 (audited) and June 30, 2006 (unaudited). The following summary of selected financial information is derived from, should be read in conjunction with, and is qualified in its entirety by reference to, DigiScreen's financial statements, including the notes thereto. As noted, DigiScreen's financial statements for years ended June 30, 2008 and June 30, 2006 have not been audited.
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