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Engagement Labs Inc.

Exchange: TSXV Exchange | Jun 24, 2019, 2:27 PM EDT

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Engagement Labs Announces Number of Common Shares Issuable Upon Conversion of all Outstanding 1% and 2% Debentures
Engagement Labs Announces Number of Common Shares Issuable Upon Conversion of all Outstanding 1% and 2% Debentures

Canada NewsWire

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.

(PRNewsfoto/Engagement Labs)

$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

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