NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
MONTREAL, May 30, 2019
/CNW/ -- 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
Engagement Labs
vanessa.lontoc@engagementlabs.com /
ed.keller@engagementlabs.com
SOURCE Engagement Labs