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PhotoChannel Networks Inc. Raises $1.7 MillionVANCOUVER, BC – October 24, 2005 – PhotoChannel Networks Inc. (TSX-V: PNI and OTCBB: PHCHF) (“PhotoChannel” or the “Company”), one of North America’s leading digital imaging technology providers, reports that the Company has completed its non-brokered private placement announced October 6, 2005. Commitments and subscriptions for 17,000,000 units exceeded what the Company initially announced and will result in gross proceeds of $1,700,000. Closing is subject to TSX Venture Exchange and regulatory approval. As announced previously, each unit is being sold at a price of $0.10 per unit. Each unit consists of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase an additional common share at an exercise price of $0.15 for a period of one year from the date of closing. The common shares and the common shares underlying the common share purchase warrants, will each be subject to a four month hold period from the date of issuance of the units. “Investor interest in this non-brokered private placement exceeded our expectations”, stated Peter Fitzgerald, Chairman and CEO of PhotoChannel. “In the best interest of all our shareholders we decided to close off subscriptions at $1.7 million. This financing will provide the Company sufficient funds for the roll out of new US developments, as well as, strengthening our balance sheet as we continue discussions with other large US retail customers.” The Company will pay a finder’s fee to third parties in connection with this private placement. The TSX Venture Exchange has neither approved nor disapproved the information contained in this release. The Securities offered have not been and will not be registered under the Securities Act of 1933 (as amended) (United States) and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company’s board of directors has also granted options to purchase 3.2 million common shares to certain of its directors and officers, each exercisable upon vesting at $0.15 per common share. About PhotoChannel Founded in 1995, PhotoChannel operates PNI Digital Media to provide services for major retailers, wireless carriers, and content providers. The PNI Digital Media Platform connects consumer ordered content such as photos, music and games with retailers that have on demand manufacturing capabilities for the production of merchandise in real time. Currently over 8000 retail locations are serviced by PNI Digital Media. Music, Photos, Games, Video, Mobile Content - PNI Digital Media creates transaction opportunities. For more information please visit www.pnidigitalmedia.com. WARNING: The Company relies upon litigation protection for "forward-looking" statements. |
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