July 16, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Intertainment Media Inc. (TSX Venture: INT), a provider of private label social media and engagement technologies, said that it has entered into an agreement with GEM Global Yield Fund Ltd. for a $5.0 million CDN equity line of credit. The company said it will use the funds raised through this facility for the enhancement of existing and development of new product lines and general working capital purposes.

Intertainment said it will control the timing and maximum amount of any draw downs under this facility, and has the right, not the obligation, to draw down on available funds.

The company said it has the option within the terms of the agreement, to draw down funds in tranches by requiring GEM to subscribe for Intertainment’s common shares at a 10 percent discount to the average closing price of the company's common shares over a 15 day trading period following the draw down notice date. GEM will hold freely trading shares of the company through a share lending facility provided by current shareholders.

As part of the equity credit line transaction, the company has agreed to issue 7.5 million warrants to GEM in conjunction with the first draw down tranche. The warrants will be exercisable for a period of three years from the closing notice date at an exercise price of $0.20 CDN per share.

Canada-based Intertainment Media is a rich media applications provider focused on delivering technology and marketing solutions designed to enable clients to power enhanced branding, loyalty initiatives and consumer engagement. Intertainment Media owns a number of key properties including Ad Taffy, itiBiti and Magnum Fine Commercial Printing.

Switzerland-based Global Emerging Markets is an alternative investment group that manages a set of investment vehicles across the world. GEM's funds include: CITIC/GEM Fund; VC Bank/GEM Mena Fund; GEM Global Yield Fund; GEM India and Banco Pine/GEM Funds.

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