INT spin out update.

Here is my take on the latest news release of this morning about 1 hour ago.

This is my opinion only and my comments have been inserted into their own press release. The comments added are based only from past experiences in the business field and about what can be or cannot be disclosed during a blackout period.

TORONTO, CANADA--(Marketwire - May 23, 2012) - Intertainment Media Inc. (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) ("Intertainment" or the "Company") is pleased to provide an update on the spin out of Ortsbo Inc. ("Ortsbo") previously announced on February 28, 2012. The Company continues to receive feedback ( what they have to do before getting approval for a senior listing meaning TSX for INT AND Ortsbo) from Canadian regulators on its proposed financing and senior listing, and during this process, Intertainment has received interest (There are 3 major listings in the US: NASDAQ, AMEX and naturally NYSE. All 3 are striving actually to get new company listed and NASDAQ is still by far the least expensive to get listed on than the other 2 exchanges. With what just happened with Facebook, I would not be surprised if Nasdaq would be offering some kind of special deal. Also very important to note that you need either underwriter or approval to become an ADR (I am not even sure it is possible for a Canadian Company to become an ADR) meaning also many market makers are demonstrating a large interest to work with INT and ORTSBO) from US investment banking firms for listing both Intertainment and Ortsbo on senior US exchanges. (That does not include OTCQX as it is not considered senior exchange)  The Company has spent time with firms in New York, Chicago and Los Angeles ( banks, mutual funds private investors and underwriters) discussing the opportunity and feels that the interest is significant enough to consider pursuing such opportunities further and report its findings to shareholders. (A good monetary deal is most probably on the table from MANY of the already mentioned institutions.)

Ortsbo's initial focus (it seems that this focus now include something else more advance and profitable) has been to create social engagement and commercially leverage US entertainment and pop culture markets on a global basis and work with leaders in the industry to effectively create multi-language business opportunities. (licensing opportunities) To date, Ortsbo has successfully run events with Disney, Dreamworks, Marvel, KISS, IndyCar, Clear Channel, Variety, Fox, Yahoo!, MSN and other major brand partners. Given the strong US interest for Ortsbo's and Intertainment's investment portfolio companies, (Not only ORTSBO is targeted but the WHOLE investment portfolio) management feels, in consultation with its lead financial advisor, M Partners, Inc., that the value proposition of a US listing may potentially provide greater value for all stakeholders.

Ortsbo now has over 162 Million unique monthly users (What??? Another 52% increase in only 90 days…it could mean well above 250M users by end of July. If this is not viral growth I cannot find another way to describe it…I was expecting 125M users…not that big of an increase) , growing by over 55 Million users in the past 90 days and continues to move towards sustainable revenue (that means month after month and also indicate that revenues are increasing to a profitable level)  with defined commercial opportunities in social media, broadcast communications, global customer care and ecommerce programs with major brand partners. (licensing fees are definitely on the radar screen with new US laws and no doubt many are already in talks with INT)

Ortsbo's business development team in the US, Canada and now Europe are working with major brands (how about mobile manufacturers including Nokia that is in great need of a totally different product to revamp their sales) to identify their global opportunities to increase revenues and customer satisfaction experiences with the use of Ortsbo's proprietary services platform. Additionally, recent changes to the US Federal Communications Commission's regulations with respect to accessibility through closed captioning and online intellectual property have opened up a number of opportunities with major entertainment studios. (What can I add here. It is self explanatory…)

Ortsbo has now been engaged in pilot programs for proof of commercial concept with several global brands. Some of these programs are expected to be made public in the near future and will potentially provide the Company with sustainable revenue programs from which to grow its overall commercial business platform. (I can only think about the real $$$ potential of ORTSBO. Read carefully as it is mentioned ‘’SEVERAL global brands and some will be made public in near future…By itself it sounds like a deal is signed if performance is there…)

As the Company currently awaits final approval for circulation of its materials to hold a special meeting of shareholders and has publicly disseminated a proposed date of June 14, 2012 for such meeting, the Company will move ahead, at this time, with a presentation to shareholders, providing an interactive forum to present and discuss the Company's progress with interested parties and allow parties to engage with management.

The meeting on June 14, 2012 will be held at:

/T/

Hilton Toronto/Markham Conference Centre

8500 Warden Avenue

Markham, ON

L6G 1A5

Markham Ballroom

Meeting time: 9:30am - 11:30am

Read more: http://www.digitaljournal.com/pr/722853#ixzz1vhSws2P8

 

That news release is the most explosive one from INT since a long time ago and could propel the share price in a very short period of time.

As we have already seen today over 1,3M shares have been traded in only a bit more than 1 hour with an increase over 25%.

Disclosure: I am long on INT and own a good chunk of shares. I have no intention to sell in the coming weeks and could add to my position. Please read this update as my sole opinion and in no case does it represent an advice to buy or sell. Always do your own due diligence before investing in any stock and consult your financial advisor to be sure any investment fits into your strategy.