SEB Provides Further Update on Strategic Financing Transaction

MISSISSAUGA, Ontario, Oct. 16, 2020 (GLOBE NEWSWIRE) -- Smart Employee Benefits Inc. (“SEB” or the “Company”) (TSXV: SEB) announces that it is continuing to work on completing the Company’s $20,000,000 strategic financing transaction by way of a private placement of a convertible debenture, which financing is being provided by a large strategic investor. The principal amount of the convertible debenture is convertible into common shares of the Company at $0.25 per share. The proceeds of the financing will be used to repay term indebtedness of the Company. The financing was initially announced by press release dated November 5, 2019 and most recently by press release dated September 18, 2020.

The completion of the strategic financing transaction has been delayed due to challenges and delays related to the COVID-19 pandemic, but the Company still expects to close the financing transaction coincident with the completion of an operating credit facility, which negotiations are in advanced stages.

The TSX Venture Exchange (the “Exchange”) has conditionally approved this strategic financing transaction, but completion of the transaction remains subject to final Exchange approval and consent from the Company’s shareholders, as the strategic investor would be deemed by the Exchange to be a new control person of the Company holding more than 20% of its outstanding shares upon conversion of the debenture.

ABOUT SEB
SEB is a technology company providing Business Process Automation and Outsourcing software, solutions and services to a national and global client base. SEB has a specialty growth focus in cloud enabled SaaS processing solutions for managing employer and government sponsored health benefit plans on a BPO (Business Processing Outsourcing) business model, globally. SEB currently serves corporate and government clients across Canada and internationally. Over 80% of SEB’s revenues derive from government, insurance and health care organizations. SEB’s technology infrastructure of over 650 multi-certified technical professionals, across Canada and globally, is a critical competitive advantage in supporting the implementation and management of SEB’s benefits processing solutions into client environments. SEB’s Benefits Processing Solutions can be game changing for SEB clients.