ZIM Closes Private Placement and Debt Conversion

Fri, 2006-06-30 00:00 -- zim-admin

Ottawa, Canada - June 30, 2006- ZIM Corporation (OTCBB: ZIMCF), a mobile content and services provider, today announced that it has completed a private placement of 18,365,386 units at $0.04 US per unit. Each unit consisted of one common share and one warrant to purchase an additional common share at a price of $0.04 US per common share within the next fifteen months. The units and exercise price of the warrants were priced at the closing price of ZIM’s common shares on the OTCBB on June 29, 2006. 

Total cash proceeds of the offering were $280,422 US. Dr. Michael Cowpland, ZIM’s chief executive officer, purchased 18,024,591 units through a cash investment of approximately $267,000 US and the remainder was satisfied through the conversion to units of the outstanding balance on a line of credit, provided by Mr. Cowpland to ZIM, of approximately $454,000 US. The line of credit now has a zero balance and will remain available to the company. 

With this conversion of debt to common shares and the cash raised in the private placement, ZIM is positioned to continue to pursue its strategy in mobile content. The Company continues to pursue acquisition opportunities, such as its acquisition of Ringingphones.com in April, which ZIM believes will provide the Company with a strong avenue for growth moving forward. 

"The conversion of debt to equity and additional cash invested continues to signify my commitment and belief in ZIM.” said Dr. Cowpland. “With the additional funds we hope to pursue acquisition opportunities and to further strengthen our current mobile offering”.

About ZIM

ZIM is a mobile content and service provider. For more information on ZIM and its customers, partners and products, visit: www.zim.biz

For more information:

Jennifer North
Chief Financial Officer
ZIM Corporation
Phone: 1 613.727.1397 ext. 121
E-mail: jnorth@zim.biz