Engagement Labs Provides Q3 Financial Guidance, Announces Financing and Grant of Options

MONTREAL, Quebec — November 17, 2017 - Engagement Labs Inc. (TSXV: EL) provides financial guidance for the three months ended September 30, 2017. The Company expects to report quarterly revenue of approximately $875,000 which represents a 10% increase in revenue and a 9% increase in gross margin over Q2 2017. Operating expenses before extraordinary items in Q3 2017 remained stable at approximately $1.26 mm and represents a 58% decrease in operating expenses from Q3 2016. Adjusted EBITDA excluding capitalization improved to -$669,894 in Q3 2017 from -$926.009 in Q2 2017 and $-1,332,436 in Q3 of 2016.

The Company is pleased to advise that it expects to close on subscriptions for 64,000,000 units for gross proceeds of $3.2 million on a private placement basis at a subscription price of $0.05 per unit on November 20, 2017. Each unit is comprised of one common share and one-half of one warrant exercisable at a price of $0.07 per share for a period of 24 months from closing. The financing is brokered by PowerOne Capital Markets Limited acting as Lead Agent and Dominick Capital Corporation acting a co-Lead Agent and bookrunner. PowerOne shall receive a fixed fee of 1.5 million in Units. Participating brokers will be paid a cash commission of 4.5% and 4.5% in brokers warrants convertible into units at $0.05 per unit, with each such unit being the same as the units offered in the private placement. Dominick will be paid a 1.5% cash commission and 1.5% brokers warrants on all orders other than those placed with insiders. It is expected that Insiders may subscribe for approximately $1 million in units. No compensation will be paid to any agent or broker for non-brokered subscriptions including those of insiders.

The Company also announced share compensation and stock option arrangements approved by the Board of Directors, subject to regulatory and shareholder approval:

1,895,000 common shares issuable to directors at an issue price of $0.065 per share has been proposed as payment in lieu of cash of $123,175 in directors’ fees accrued net of taxes for the period from January 1, 2017 to October 31, 2017. The proposed payment in shares to the directors is consistent with the Board of Directors’ policy of paying the directors with shares to preserve cash and to align the interests of the Board of Directors with the shareholders;

4,070,000 stock options at an exercise price of $0.065 per share having a term of five years have been granted to officers and directors of the Company, subject to shareholder and regulatory approval, of which 3,559,700 are available for issue immediately and the balance of 510,300 will be available for issue under the plan upon closing of the financing. The grant of options at $0.065 requires an amendment to the stock option plan to align the plan with the Exchange’s minimum stock option exercise price of $0.05 per share. Subject to the aforementioned approvals, 3,420,000 of the 4,070,000 stock options granted are allocated for employees and 650,000 stock options have been allocated for the directors. In the event that shareholder approval is not obtained for the aforementioned option grant, such options will be deemed to be exercisable at $0.10 per share pursuant to the existing plan.

The Company anticipates holding its annual and special meeting of shareholders in early January 2018.

The use of proceeds will be for working capital including the continued development of the company's proprietary “TotalSocial” solution launched in the Fall of 2016. A total of $4.2 million in “TotalSocial” contracts have been signed to date. Clients are Fortune 500 brands from a range of verticals including financial services, telecom, media and sports, food, beauty, and software.

TotalSocial is a patent pending data and analytics platform uniquely providing leading brands with a comprehensive view of the social ecosystem and its impact on their business. It is the only platform that combines online conversation about brands that take place via social media, with offline, and word of mouth conversations (based on a proprietary 10-year database of offline conversation built by Engagement Labs, the only such source of word of mouth data about brands a major source of competitive advantage). These data feed the company’s predictive analytics engine which uses proprietary algorithms and machine learning to forecast future sales and provide marketers with more better insights, improved marketing ROI and increased sales.

About Engagement Labs
Engagement Labs (TSXV: EL) provides the world’s leading brands with a unique and powerful way to drive sales and improve marketing ROI. Our TotalSocial® technology combines social media listening metrics and with the world’s only ongoing measure of offline word of mouth into a single dashboard, to allow marketers the ability to measure performance, diagnose areas of weakness and opportunity, and identify specific strategies and tactics to increase sales and improve marketing ROI. Our proprietary predictive analytics tie TotalSocial metrics to critical business outcomes. Engagement Labs has offices in the US, the UK and Canada.

Disclaimer in regards to Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. 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:
Kate Tumino / Amrita Singh
KCSA Strategic Communications
ktumino@kcsa.com / asingh@kcsa.com
212-896-1252 / 212-896-1207

Ed Keller, CEO
Engagement Labs

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