FORM 8-K: INTERNET MEDIA SERVICES FILES CURRENT REPORT

WASHINGTON, March 24 -- Internet Media Services Inc., Santa Monica, Calif., files Form 8-K (current report) with Securities and Exchange Commission on March 22.

State or other jurisdiction of incorporation: Delaware

Unregistered Sales of Equity Securities

On March 17, 2011, Internet Media Services, Inc. ("the Company") entered into a subscription agreement with one (1) accredited investor. Under this subscription agreement, the Company issued a total of 2,500,000 shares of common stock and a seven-year warrant to purchase 2,500,000 shares of common stock in consideration of $250,000. The warrants are exercisable at $0.30 per share. No underwriters or placement agents were utilized in the offering, no commissions were paid in connection therewith and the proceeds were used for general working capital. The offering was exempt from registration pursuant to the provisions of Section 4(2) of the Securities Act. The purchaser was an accredited investor (as that term is defined in Item 501 of Regulation D), was a friend or business associate of the Company's management, was familiar with the operations of the Company and purchased the securities for investment and not with a view to distribution or resale thereof. All certificates issued to purchaser contained the customary restrictive legend thereon, restricting resales.

Other Events

On March 16, 2011, the Company and Mr. Meyers, stockholder, chief executive officer, and Director of the Company, agreed to an increase in the principal amount of the revolving credit line extended by Mr. Meyers to the Company on April 8, 2010 from $200,000 to $225,000, effective December 31, 2010, and Mr. Meyers agreed to extend the maturity date of the revolving credit line to April 8, 2012. The revolving credit line carries an annual interest rate of 6% above LIBOR, and is secured by all of the assets of the Company. The revolving credit line is used by the Company for working capital. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

http://www.sec.gov/Archives/edgar/data/1487718/000143209311000126/internetmedia8k031711.htm