Engagement Labs Inc. Closes Oversubscribed $2.7 Million Prospectus Offering Led by Gravitas Securities Inc.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
MONTREAL, Quebec — May 30, 2019 — Engagement Labs Inc. (TSXV:EL) (the “Company”), is pleased to announce that it has closed its previously announced “best efforts” short form prospectus offering (the “Offering”). In connection with the Offering, the Company issued 45,041,334 units of the Company (the “Units”) including 5,874,668 Units issued upon the exercise of the over-allotment option granted to Gravitas Securities Inc., the agent for the Offering. The Units were sold at a price of $0.06 per Unit for aggregate gross proceeds of approximately $2,702,480.
Each Unit is comprised of one common share in the capital of the Company, one-half of one common share purchase warrant (each such whole common share purchase warrant, a “10 Cent Warrant”) and a second one-half of one common share purchase warrant (each such whole common share purchase warrant, a “12 Cent Warrant”). Each 10 Cent Warrant is exercisable to purchase one common share in the capital of the Company (a “10 Cent Warrant Share”) at a price of $0.10 per 10 Cent Warrant Share until November 30, 2019. Each 12 Cent Warrant is exercisable to purchase one common share in the capital of the Company (a “12 Cent Warrant Share”) at a price of $0.12 per 12 Cent Warrant Share until May 30, 2021.
The closing of the offering complements the Company’s previously announced debt-restructuring approved by debentureholders on May 22, 2019 which will see the elimination of $5.8 million in debt converted into common shares, of which $4.2 million will be converted at $0.11 per share and $1.6 million converted at $0.06 per share. The elimination of substantially all outstanding debt and the addition of working capital are positive steps for the Company as its TotalSocial platform continues to gain recognition with leading brands and media companies.
The net proceeds from the offering are expected to be used primarily for working capital and for marketing the Company’s TotalSocial analytics platform. For additional details regarding the use of proceeds of the offering, please see the Company’s final short form prospectus dated May 23, 2019, which is available under the Company’s profile on SEDAR at www.sedar.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of Engagement Labs Inc. in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered in the offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the United States Securities Act of 1933, as amended, and applicable state securities laws, or unless an exemption from such registration is available.
About Engagement Labs
Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.
To learn more visit www.engagementlabs.com
Disclaimer in regard to Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws, including the use of proceeds from the Offering and the elimination of the Company’s debt. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For media inquiries please contact:
Vanessa Lontoc / Ed Keller, CEO