SEB Announces $3.5 Million Financing

TORONTO, ONTARIO--(Marketwired - Oct. 1, 2014) - Smart Employee Benefits Inc. ("SEB") (TSX VENTURE:SEB), is a technology company which uses a SaaS business model to provide "business processes software solutions and services" to corporate and government clients with specialty practices focused on "managing group benefit solutions and health claims processing environments." SEB is pleased to announce two private placement financings which will raise an aggregate total of up to $3,500,000, subject to regulatory approval. The proceeds of these financings will be used primarily for acquisitions and working capital.

TERMS:

1) $1,000,000 Equity Units (the "Equity Units") - The Equity Units will be issued at $0.50 per unit and consist of one SEB common share and one SEB common share purchase warrant exercisable for a period of 36 months at $0.60 per share for year one and year two, and $0.75 per share for year three. The President/CEO of SEB, through a personal holding company, will subscribe for $500,000 of the Equity Units.

2) $2,500,000 senior one-year term debt at 8.0% per annum, interest calculated and accrued monthly in arrears, paid quarterly. Warrants will be issued to acquire SEB common shares on the basis of one warrant for every $1.25 of principal of debt issued. The warrants will have a term of 36 months and be exercisable at $0.60 per SEB share for the first 12 months and $0.75 per SEB share for the subsequent 24 months. A total of 2,000,000 warrants will be issued. The debt may be repaid in whole or in part at any time, without penalty.

MANAGEMENT COMMENTS: States John McKimm, President/CEO of SEB, "This financing is targeted to fund acquisitions. The debt financing and a portion of the equity financing is being provided from an investor who has identified SEB as a long term strategic partner for multiple business initiatives in Canada, the US, the United Arab Emirates and India. SEB's technology solutions and expertise provide the core underlying infrastructure for these business initiatives, including a TPA infrastructure in the middle east and the delivery of pharmaceuticals through unique delivery channels including a vending machine pharmacist footprint. These vending machines would be located in medical centres, universities, colleges, grocery stores, high traffic office buildings, etc., and would deliver standard packages of the top 40 most prescribed drugs. The SEB software solutions provide the underlying integrated administration and adjudication platform connected through a portal environment (a unique expertise of SEB) directly to medical professionals. Similar pharma technology delivery infrastructure has gained significant traction in the US marketplace, allowing patients to pick up their prescriptions (particularly maintenance drugs) at convenient locations and after hours. Discussions are in process to implement these solutions with the largest grocery chain and pharmacy chain in the UAE. SEB is also in discussions with universities and colleges in the Canadian market to implement this unique solution. This strategic investor has extensive global relationships and views the SEB software solutions and technology expertise as a significant competitive advantage in expediting these business initiatives. SEB has been working with this investor for some time and the business opportunities introduced allows SEB to offer very unique solutions to the marketplace."