DGAP-News

Intertainment Media Receives Offer to Sell Patent and Key Language Services of Ortsbo to Yappn Corp.

DGAP-News: Intertainment Media Inc. / Key word(s): Miscellaneous
Intertainment Media Receives Offer to Sell Patent and Key Language
Services of Ortsbo to Yappn Corp.

26.05.2015 / 19:15

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Toronto, Ontario & New York, New York--(Newsfile Corp. - May 26, 2015) -
Intertainment Media Inc. (TSXV: INT) (OTCPINK: ITMTF) (FRA: I4T)
('Intertainment' or 'Company') is pleased to announce that it has signed a
non-binding letter of intent with its language technology and services
partner Yappn Corp. (OTCQB:YPPN) ('Yappn') pursuant to which Yappn has
offered to purchase key assets of Ortsbo Inc. including US Patent No.
8,983,850 B2, proprietary language services technology assets, know how
related to Ecommerce and Customer Care and business contracts for a total
purchase price of US $17 Million. The terms of the agreement include the
transfer of up to US $1 Million in debt and US $16 Million in Yappn equity.
The transaction and terms are subject to the execution of definitive
agreements between the parties and both parties will be required to obtain
all necessary approvals, including shareholder approval, if required, and
the approval of the TSX Venture Exchange.

Under the Services Agreement, as subsequently amended October 24, 2013,
between Yappn, Intertainment and Intertainment's Ortsbo subsidiaries
(Ortsbo, Inc., a corporation organized under the laws of Canada ('Ortsbo
Canada'), and Ortsbo USA, Inc., a Delaware corporation ('Ortsbo USA' and,
collectively with Ortsbo Canada, 'Ortsbo'), Yappn was granted the first
right of refusal to purchase the Ortsbo platform and all its assets and
operations for a period of two years from the date of the amendment.

Yappn is negotiating for the purchase of the aforementioned assets along
with a concurrent preferred share financing of up to a maximum of US $6
Million, supported by its secured line of credit holders, and has executed
a non-binding letter of intent with Winterberry Investments Inc. a private
company, led by Mr. David Berry, to facilitate this transaction. As part of
the transaction, Intertainment will be seeking to retire certain Ortsbo
related financing obligations and minority shareholder interests.

In the past several months, Intertainment has branded TranzActive to work
with firms seeking to enable language services programs outside of Yappn's
current arrangement, including exclusivity pertaining to social media,