MONTREAL, June 5, 2019 /CNW/ -- Engagement Labs Inc.
(TSXV: EL) (the "Company"), announces today that in order to
proceed with the conversion of the outstanding principal amount of
all 1% Debentures and 2% Debentures, plus accrued interest on such
Debentures, into common shares of the Company, which
Debentureholders approved as reported in the Company's News Release
dated May 22, 2019 and filed on SEDAR
on that date, it is a requirement of the TSX Venture Exchange for
the Company to issue this news release disclosing the number of
common shares to be issued to each class of Debentureholders, as
well as the number of common shares to be issued to
Debentureholders that are also insiders of the Company, on
conversion of all outstanding 1% Debentures and 2% Debentures.
$4,194,975 aggregate principal
amount of 1% Debentures will be converted into common shares at a
price of $0.11 per share resulting in
the issue of 38,136,139 common shares, and $109,529.11 in accrued interest on the 1%
Debentures will be converted at the current market price of
$0.06 per share resulting in
the issue of 1,825,488 common shares for accrued interest, for a
combined total of 39,961,627 common shares to be issued to the
holders of the 1% Debentures for principal and accrued interest, of
which 21,381,359 common shares will be issued to insiders.
$1,665,000 aggregate principal
amount of 2% Debentures will be converted into common shares at a
price of $0.06 per share resulting in
the issue of 27,750,001 common shares, and $13,502.50 in accrued interest on the 2%
Debentures will be converted at the current market price of
$0.06 per share resulting in the
issue of 225,042 common shares for accrued interest, for a combined
total of 27,975,043 common shares to be issued to the holders of
the 2% Debentures for principal and accrued interest, of which
5,998,253 common shares will be issued to insiders.
The Company's financing that closed on May 30, 2019 was subject to certain conditions
including the above-referenced approval for the conversion of
outstanding Debentures and the implementation of the conversion as
referenced herein. Given these conditions of financing and
the financial condition of the Company prior to completion of the
financing, the issue of common shares to insiders of the Company on
conversion of their convertible debentures is exempt from the
minority approval and formal valuation requirements of Multilateral
Instrument 61 101 pursuant to the financial hardship provisions in
sections 5.5(g) and 5.7(e) thereof.
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
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
1-732-846-6800
vanessa.lontoc@engagementlabs.com /
ed.keller@engagementlabs.com
SOURCE Engagement Labs