GALAVU ENTERTAINMENT FUELS GROWTH WITH NEW EQUITY
INFUSION
MARKHAM, Ontario, Canada (July 2, 1997) GalaVu Entertainment Inc. (CDN:GENI) today
announced that it successfully closed a $6.5 million private placement with CIBC Wood Gundy
Capital (SFC) Inc. effective June 26, 1997. The closing of the transaction included the issuance
of Class A Preferred Shares at a price of $1.00 with a 6% dividend.
The shares are convertible to common shares at a price of $1.50. Under the terms of the deal,
CIBC Wood Gundy will also be represented on the GalaVu board of directors.
"It is certainly beneficial for GalaVu to have CIBC Wood Gundy Capital, a leading Canadian
merchant bank, as an equity partner," stated GalaVu CEO, Paul Nielsen. "We are confident the
firm will be a contributor to our future success and we look forward to a positive working
relationship. Equally important is the fact that this capital fuels our aggressive growth plans and
enables us to proceed with completion of contracts already in hand."
In other news, GalaVu announced that it has finalized the $13.1 million bank financing with CIBC
Wood Gundy Media and Telecommunications group. Also on June 26, 1997, holders of
$563,000 of GalaVu's debt subscribed for an aggregate of 473,109 common shares in settlement
of the company's payment obligation.
GalaVu Entertainment Inc. provides leading-edge entertainment and information services to the
global hospitality industry, with a strategic market focus on the unserved small and medium-sized
property segment. Utilizing proprietary technology, GalaVu's interactive system provides a wide
range of affordable, in-room entertainment packages. Marketed to guests under the
'Round-the-Clock Entertainment brand, GalaVu's suite of products includes premium television
programming, live sporting events, Hollywood movies on demand, video games and other
information and entertainment services.
For more information regarding GalaVu Entertainment Inc., please contact Investor Relations at
Frankopan & Co. @ 905-814-0030. For media relations please contact Joel Herzog, Vice
President, Marketing at 905-479-8999. GalaVu shares are available for quotation or trading on
the Canadian Dealing Network under the symbol "GENI." There are 14,342,033 common
shares issued and outstanding. |
