Press Release
QSound Labs' Completes $2 Million Private Placement
Calgary, Alberta - December 17, 2004 - QSound Labs, Inc. (NASDAQ: QSND), a leading developer of audio, and voice software solutions, today announced that it has entered into an agreement for an equity financing of $2,000,000 US through a private placement of units consisting of common shares and warrants to an institutional investor. The Company has issued 347,826 common shares and warrants to purchase up to 139,130 common shares at the exercise price of $9.12 US per share, exercisable for a five year period. The investor has also received additional investment rights in connection with the private placement, pursuant to which the investor has the right to purchase, on the later of July 16, 2005 and 180 days after the effectiveness of the registration statement, up to 521,739 common shares and 208,696 warrants, in each case at the same prices as the common stock and warrants to be issued at the initial closing. QSound is required to register for resale the shares issued in the private placement as well as the shares issuable upon exercise of the warrants and the additional investment rights received by the investors in the private placement. QSound expects to utilize the proceeds from the private placement for working capital as it expands upon its VoIP business. Kaufman Bros. L.P. acted as placement agent for the transaction.
About QSound Labs, Inc.:
Since its inception in 1988, QSound Labs, Inc. has established itself as one of the worlds' leading audio technology companies. The company has developed proprietary audio solutions that include virtual surround sound, positional audio and stereo enhancement for the mobile devices, consumer electronics, PC/multimedia, and Internet markets. QSound Labs' cutting-edge audio technologies create rich 3D audio environments allowing consumers to enjoy stereo surround sound from two, four, or up to 7.1 speaker systems. The company's customer and partner roster includes Broadcom, Qualcomm, Vodafone, PacketVideo, Toshiba, Philips, Panasonic, Sharp, Aiwa, and Electronic Arts, among others. To hear 3D audio demos and learn more about QSound, visit our web site at http://www.qsound.com.