Sonomax Technologies Inc. Announces Maximum $4.5 Million Private Placement

MONTREAL, Oct. 17, 2011 /CNW Telbec/ - Sonomax Technologies Inc. (TSXV: SHH) is pleased to announce that it is effecting a private placement of up to 75,000,000 common shares at a price of $0.06 per share, for maximum gross proceeds to Sonomax of $4.5 million.

Sonomax will use the net proceeds from the private placement for commercialization of its products, business development and general corporate purposes.

The private placement will be effected pursuant to prospectus exemptions under applicable securities legislation and is expected to close on or about November 14, 2011.

Industrial Alliance Securities Inc. (IAS) is acting as agent for the private placement on a best-efforts basis. Sonomax will grant an over-allotment option to IAS, under which IAS will have the right to sell another $675,000 of shares, representing 15% of the maximum offering, at the issue price for a period of 30 days from the date of closing of the private placement.

In connection with the private placement, Sonomax will pay IAS a cash commission in an amount equal to 7.5% of the gross proceeds from the sale of shares to investors identified by IAS. In addition, if IAS sells shares in an amount of at least $1.3 million, Sonomax will pay IAS an additional $20,875 in cash compensation. Sonomax will also issue "broker warrants" to IAS, entitling it to purchase, for a period of three years and at a price of $0.10 per share, a number of additional common shares equal to 7.5% of the number of common shares sold to investors identified by IAS.

The private placement has been conditionally accepted by the TSX Venture Exchange, subject to the filing by Sonomax of standard documentation. The securities issued in the private placement will be subject to a four-month "hold period" under applicable securities legislation and the policies of the TSX Venture Exchange.

There are currently 292,745,244 common shares of Sonomax issued and outstanding.