July 10, 2014
Engagement Labs Inc. has raised $4.3-million, of which approximately $2.9-million was raised on a brokered best-efforts private-placement basis, with Industrial Alliance Securities Inc. as bookrunner and lead agent, and including PowerOne Capital Markets Inc. as co-agent.
The Offering was comprised of 8,612,000 Units at a subscription price of $0.50 per Unit, each Unit consisting of one common share and one-half of one common share purchase warrant (“Warrant”), each whole warrant exercisable into one common share of the Company at a price of $0.70 per share until December 31, 2016. Aggregate compensation payable to the Agents (including any members of the selling group) consists of a cash commission equal to eight percent of the Offering plus brokers’ compensation warrants equal in number to ten per cent of the number of brokered Units issued exercisable into Units at a price of $0.50 per Unit for a period of twenty-four months from Closing. Use of proceeds is for general working capital. As previously disclosed in a news release on June 27, 2014, the company continues to work towards completing an acquisition during the month of July.
The Company also announces that it has completed the shares for debt settlement transaction, previously announced on June 26, 2014, with one of its service providers pursuant to which the Corporation has issued 325,000 common shares at a deemed price of $0.55 per Share and paid an amount of $8,000 to settle an outstanding debt in the amount of $351,690 for services rendered to the Corporation.
We seek Safe Harbor.