Smart Employee Benefits (SEB) has completed the first tranche of a private placement equity financing for gross proceeds of USD2,400,000 out of maximum aggregate proceeds of USD4,000,000.
The First Tranche financing consists of 6,000,000 units (the "Units") at a price of USD0.40 per Unit. Each Unit consists of (i) one common share of SEB and (ii) one common share purchase warrant of SEB (the "Warrants"). Each Warrant has a term of 24 months from the date of issuance and vests on December 31, 2016 at an exercise price of USD0.75 per share.
The financing is non-brokered and sourced from a strategic investor. SEB expects the balance of proceeds of USD1,600,000 to close in the coming weeks, shortly after the closing of the Maplesoft Group Inc. acquisition, as described below. All securities issued in connection with the financing are subject to a four month hold period from the date of closing.
Pursuant to SEB's previous engagement of finders, a cash fee of 5 per cent of the gross proceeds raised in the private placement and finder warrants (the "Finder Warrants") equal to 10 per cent of the number of Units of SEB, will be issued. Each Finder Warrant is exercisable for a period of 18 months from the closing date at an exercise price of USD0.40 per share. Up to one million Finder Warrants will be issued to the finders in respect to SEB finders' fee obligations.
SEB intends to use proceeds from the First Tranche to fund SEB's working capital and planned acquisition of Maplesoft Group Inc., as described in a press release dated 11 June, 2015.
