SEB Announces Closing of Second Tranche of $5 Million Unit Offering

Smart Employee Benefits Inc. (“SEB” or the “Company“) (TSX VENTURE:SEB) announces that is has closed a second tranche of its $5 million unit offering (the “Offering“). The Offering was previously announced on October 20, 2016 and its extension was announced on December 5, 2016.

Aggregate proceeds of $1,551,560 were raised on this second tranche closing. 7,757,800 units (each a “Unit“) were issued at a price of $0.20 per Unit. Each Unit consists of one common share of the Company and one transferable common share purchase warrant of the Company (a “Warrant“). Each Warrant is exercisable into one common share of the Company at a price of $0.30 per share and has a term of 18 months from the date of issuance.

Approximately $501,560 of the subscriptions on this second tranche was from Company insiders.

A finder for the Offering was paid cash compensation of $70,000, which is equal to 7% of the gross proceeds it assisted with under the Offering, as well as 350,000 finder warrants (each a “Finder Warrant“), which is equal to 7% of the number of Units sold it assisted with pursuant to the Offering. Each Finder Warrant entitles the finder to acquire one Unit at an exercise price of $0.20 per Unit and has a term of 18 months from the date of issuance.

All securities issued in connection with this second tranche of the Offering will be subject to a four-month hold period expiring April 23, 2017. Proceeds from this second tranche of the Offering will be used for repayment of debt and working capital purposes.

This brings the total closed financing to $3,204,445. Of the remaining $1,795,555 of the $5,000,000, over $600,000 has been committed from insiders of the Company. It is anticipated that insiders of the Company will subscribe for over $2.0 million of the $5.0 million equity financing. It is expected that the remainder of the Offering will close in January, 2017.

About SEB
Smart Employee Benefits Inc.’s global infrastructure is comprised of two operating divisions: Technology and Benefits. The Technology Division currently serves corporate and government clients across Canada and internationally. The Benefits Division focuses on offering SAAS and BPO back-office processing and automation solutions in the Health Benefits Sector to corporate and government clientele. The Benefits Division operates as a client of the Technology Division. The Technology Division is a critical competitive advantage in supporting the implementation of SEB’s benefits processing solutions into client environments. Benefits Processing is a high-growth specialty practice area.

The core expertise of both divisions is data processing. Emphasis is on automating business processes utilizing SEB proprietary software solutions combined with solutions of third parties through joint ventures and partnerships.

Acquisitions, joint ventures, and RFP wins will continue to be dominant influences in driving growth in both divisions. The Company has increased sales approximately 500% since Fiscal 2014.

For further information about SEB, please visit www.seb-inc.com.