Kitara Media Group to raise $7 million in private placement

Digital media and tech company Kitara Media Group said Friday that it has agreed to sell over 12.7 million shares of its common stock at $.55 per share in a $7 million private placement. The transaction also includes the conversion of a $1 million promissory note held by Ironbound Partners Fund. Craig-Hallum Capital Group is acting as placement agent.

PRESS RELEASE

JERSEY CITY, N.J., April 25, 2014 /PRNewswire/ — Kitara Media Corp. (OTCBB: KITM), (the Company) today announced it has entered into definitive agreements with institutional and other investors for the private placement of $7.0 million of the Company’s common stock and common stock warrants, including through the conversion of a $1 million promissory note held by Ironbound Partners Fund LLC, an affiliate of the Company’s Non-Executive Chairman of the Board.
Pursuant to the terms of the private placement, the Company has agreed to sell an aggregate of 12,727,272 shares of common stock at a price of $0.55 per share. Additionally, the Company will issue to the investors warrants to purchase an aggregate of 6,363,636 shares of common stock at an exercise price of $0.825 that will expire 5 years from the date on which the warrants are issued. The closing of this offering is subject to the satisfaction of customary closing conditions.
Craig-Hallum Capital Group is acting as exclusive placement agent in connection with the offering.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
Further information regarding the private placement can be found in the Current Report on Form 8-K that will be filed by the Company with the SEC.
About Kitara Media
Kitara Media is a leading digital media and technology company providing video solutions to advertisers, digital marketers and publishers. With nearly 500 million monthly video ad views, Kitara Media delivers strong engagement for advertisers, high revenues for publishers, as well as improved user experience with PROPEL+, an internally developed proprietary video ad technology platform. Kitara Media owns and operates several online media sites including Healthguru.com and Adotas.com. The company is headquartered in Jersey City, NJ. For more information visit http://www.kitaramedia.com.

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