Engagement Labs Inc. (TSXV:EL) announced a private placement on its best effort basis of units for gross proceeds of a minimum of CAD 1,000,000 and a maximum of CAD 10,000,000 on January 8, 2014. Each unit consists of CAD 1,000 principal amount secured convertible debentures and 2,143 common share purchase warrants. The debentures carry a coupon of 6% per annum and are convertible into common shares at a conversion price of CAD 0.35 per common share until December 31, 2016. If the closing price of the company's shares on the Exchange is equal to or greater than CAD 1.25 per common share for twenty consecutive trading days.

Upon the automatic conversion of the debentures, any accrued and unpaid interest will be paid in cash. Each debenture warrant entitles the holder to purchase one common share at an exercise price of CAD 0.50 per share with an expiry date of June 30, 2016. The Company shall have the option to accelerate the expiry date of the debentures warrants twenty calendar days after the closing price of the Company's shares on the Exchange has been equal to or greater than CAD 2 per share for twenty consecutive trading days.

The company expects to raise CAD 2,500,000 on or about January 22, 2014. Scott Paterson will subscribe for CAD 500,000, Messieurs Dickson and Swayze agreed to subscribe for CAD 80,000 and CAD 40,000 respectively and existing directors, Adrian Teuscher, Ed King and Paul Allard, agreed to subscribe for CAD 100,000, CAD 50,000 and CAD 25,000 respectively. Each agent's unit is comprised of convertible debentures and warrants. An additional 2% cash commission or an additional number of agent units or a combination thereof could also be payable to any sub-agent. The securities to be issued are subject to a four-month plus one-day hold period from the closing date, pursuant to securities legislation and the policies of the Exchange.

As on January 30, 2014, the company announced that it has issued 277 units for gross proceeds of CAD 277,000. The company issued securities pursuant to exemption provided under Regulation D. The transaction included participation from 10 investors.