Quantum International Income Corp. Closes Second Tranche of Financing

TORONTO, ONTARIO--(Marketwired - Aug. 15, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRES OR DISSEMINATION IN THE UNITED STATES

Quantum International Income Corp. ("QIIC" or the "Company") (TSX VENTURE:QIC.H) is pleased to announce that it has closed the second tranche (the "Second Tranche") of its previously announced private placement offering of subscription receipts ("Subscription Receipts") of QIIC at the price of $0.35 per Subscription Receipt (the "Subscription Price") for gross proceeds of $460,014.80. Together with the first tranche, which closed on August 11, 2014 (the "First Tranche", and together with the Second Tranche, the "Financing"), the Company raised aggregate gross proceeds of $6,454,044.80. Under the terms of the Financing, the Company issued an aggregate of 18,440,128 Subscription Receipts.

The Financing was completed in connection with the previously announced proposed transactions ("Transactions") which, collectively, will constitute a "change of business" (within the meaning of the policies of the TSX Venture Exchange (the "Exchange")) and which would see the Company reactivated and thereby graduate from a listing on the NEX board ("NEX") of the Exchange to a listing on the Exchange as a Tier 2 issuer. Please see the Company's news releases dated June 27, 2014, August 8, 2014 and August 11, 2014.

The gross proceeds of the Financing are currently being held in escrow (the "Escrowed Funds") pending the satisfaction of certain release conditions (the "Release Conditions"). The Release Conditions primarily include the completion of the proposed Transactions. Completion of the proposed Transactions is subject to, among other things, receipt of all necessary regulatory approvals and approval of the shareholders of QIIC, which approval is expected to be satisfied through receipt by QIIC of written consent resolutions from holders of common shares of QIIC representing not less than 50.1% of those issued and outstanding. There can be no assurance that the proposed Transactions will be completed as proposed, or at all.

It is expected the Release Conditions will be satisfied and that the Transactions will be completed prior to August 29, 2014 (the "Release Deadline"). Upon the satisfaction of the Release Conditions prior to the Release Deadline, each Subscription Receipt will automatically convert into one common share in the capital of QIIC with no further action required on the part of the holder. If the Release Conditions are not satisfied on or prior to the Release Deadline, the Subscription Receipts will be cancelled and the holders thereof will be entitled to an amount equal to the Subscription Price per Subscription Receipt held, being the original purchase price per Subscription Receipt, plus a pro rata share of interest actually earned thereon, less applicable withholding taxes, if any.