TORONTO, Aug. 20, 2018 /CNW/ -- Engagement Labs
Inc. (TSXV: EL OTCQB: ELBSF) ("Engagement Labs" or the
"Company") which through its data and analytics platform,
online (social media) and offline (word of mouth) data, provides
some of the world's largest brands with unique insights into
consumer sentiment in real time, improving marketing ROI and
strategies to grow revenue, is pleased to announce that it has
closed its previously announced short form prospectus offering of
40,000,000 Units (the "Units") at $0.05 per Unit, including the full exercise of
the over-allotment option (the "Offering"). The Company
issued 46,000,000 Units and 23,000,000 common share purchase
warrants under the Offering for aggregate gross proceeds of
CAD$2,300,000, and also completed its
previously-announced concurrent non-brokered private placement of
US$500,000, for total gross proceeds
of approximately CAD$2,960,000.
Gravitas Securities Inc. and Echelon Wealth Partners Inc.
(together, the "Agents") brokered the Offering on a
commercially reasonable efforts basis.
G. Scott Paterson, Chairman of
Engagement Labs, purchased 4,000,000 Units under the Offering and
Loeb Holding Corp., the Company's largest shareholder, purchased
6,600,000 Units under the previously-announced concurrent U.S.
non-brokered private placement, for a total aggregate investment by
these shareholders of CAD$200,000 and
US$250,000, respectively.
Each Unit consists of one common share in the capital of the
Company and one-half of one common share purchase warrant (each, a
"Warrant"). Each whole Warrant will entitle the holder
thereof to acquire one common share of the Company at a price of
$0.08 per share for a period of two
years following closing.
Subscriptions by insiders of the Company accounted for
approximately CAD$530,000 of the
gross proceeds of the Offering. Participation by the insiders in
the Offering is exempt from the valuation and minority shareholder
approval requirements of Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special
Transactions ("MI 61-101") by virtue of the exemptions
contained in Sections 5.5(b) and 5.7(1)(b) of MI 61-101.
The net proceeds from the Offering and the concurrent
non-brokered private placement are expected to be used to fund (i)
sales and marketing; (ii) product development; and (iii) working
capital and general corporate purposes. For additional details
regarding the use of proceeds of the Offering, please see the
Company's final short form prospectus dated August 10, 2018, which is available under the
Company's profile on SEDAR at www.sedar.com.
The Company paid to the Agents a cash commission of $184,000 and issued 3,680,000 broker's warrants
exercisable at $0.05 per share for a
period of two years following closing, and a corporate finance fee
of 1,300,000 fully paid Units.
NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
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 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)
(OTCQB: ELBSF) is an industry-leading data and analytics firm that
provides social intelligence for Fortune 500 brands and companies.
The Company's TotalSocial® platform focuses on the entire social
ecosystem by combining powerful online (social media) and offline
(word of mouth) data with predictive analytics. Engagement Labs has
a proprietary ten-year database of unique brand, industry and
competitive intelligence, matched with its cutting-edge predictive
analytics that use machine learning and artificial intelligence to
reveal the social metrics that increase marketing ROI and top line
revenue for its diverse group of clients.
To learn more
visit www.engagementlabs.com / www.totalsocial.com.
About TotalSocial®
TotalSocial®
is a premier data and analytics platform that provides brands with
unique insights, improved marketing ROI and strategies to grow
revenue. Fueled by actionable online and offline data, TotalSocial
is the only platform that encompasses and listens to the entire
social ecosystem. TotalSocial offers unique, proprietary data about
brands, its industry and competitors. With cutting-edge
diagnostics, patent-pending predictive analytics and machine
learning, TotalSocial identifies business opportunities and
provides recommendations and a roadmap to grow revenue and achieve
business and marketing goals.
Disclaimer in regard to Forward-looking Statements
This press release may contain "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities laws, including, without limitation, statements
regarding the use of proceeds from the Offering. All information
contained herein that is not clearly historical in nature may
constitute forward-looking information. Forward-looking statements
are necessarily based upon a number of estimates and assumptions
that, although considered reasonable by management, are inherently
subject to significant business, economic and competitive risks,
uncertainties and contingencies that may cause actual financial
results, performance or achievements to be materially different
from the estimated future results, performance or achievements
expressed or implied by those forward-looking statements and the
forward-looking statements are not guarantees of future
performance. Additional risks and uncertainties regarding
Engagement Labs are described in its publicly available disclosure
documents, filed by Engagement Labs on SEDAR at www.sedar.com
except as updated herein. The forward-looking statements contained
in this news release represent Engagement Labs's expectations as of
the date of this news release, or as of the date they are otherwise
stated to be made, and subsequent events may cause these
expectations to change. Except as required by law, Engagement Labs
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law.
Readers are cautioned not to put undue reliance on these
forward-looking statements.
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, Marketing Director /
Ed Keller, CEO
Engagement Labs
732-846-6800
vanessa.lontoc@engagementlabs.com /
ed.keller@engagementlabs.com
SOURCE Engagement Labs