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Engagement Labs closes $6.07-million financing


January 31, 2014

Mr. Paul Allard reports

ENGAGEMENT LABS COMPLETES $6 MILLION FINANCING

Engagement Labs Inc. has completed a debenture unit financing for aggregate gross proceeds of $6.07-million.

Each Debenture Unit was issued at a price of $1,000 per Debenture Unit and consists of: (i) one secured convertible debenture (a "Debenture") in the aggregate principal amount of $1,000 maturing on December 31, 2016 convertible into common shares of the Corporation at price of $0.35 per common share, subject to automatic conversion provisions; and (ii) 2,143 common share purchase warrants each exercisable to acquire an additional common share at an exercise price of $0.50 per common share until June 30, 2016 subject to accelerated expiry provisions (the "Warrants").

"These funds will support the further development and marketing of #eSuite(TM), the next generation of Intelligent Data on Demand platform for marketers and dashboard providers," commented Paul Allard, CEO.

D&D Securities Inc. acted as Agent for a portion of the Offering and received a cash commission of $80,000 and 80 Agent Debenture Unit Compensation Options (the "Agent Unit Options") exercisable to acquire Debenture Units at an exercise price of $1,000 per Unit until December 31, 2015. Each Agent Compensation Unit consists of one Debenture and 2,143 Warrants. PowerOne Capital Markets Limited brokered a portion of the Offering and received a cash commission of $83,760 and 84 Agent Unit Options. Additional members of the Agent's selling group will receive cash commissions equal to 2% of the gross proceeds brokered by the respective selling group members and an additional 27 Agent Unit Options will also be issued.

The Debenture Units, Agent Unit Options, and all underlying securities (together, the "Securities") were issued pursuant to exemptions under Regulation 45-106 respecting prospectus and registration exemptions and are subject to a 4-month plus one day hold period from the distribution date under securities legislation and the policies of the TSX Venture Exchange (the "TSXV").

We seek Safe Harbor.