Business
DGTL Holdings Inc. Announces Closing of Financing
Total Proceeds of $1,068,000 Satisfies Key Condition in Closing of the Proposed Merger with En...
About this update from Dgtl Holdings, Inc.
[{"type":"text","content":"DGTL Holdings Inc. Announces Closing of FinancingTotal Proceeds of $1,068,000 Satisfies Key Condition in Closing of the Proposed Merger with Engagement LabsToronto, Ontario--(Newsfile Corp. - January 10, 2022) - DGTL Holdings Inc. (TSXV: DGTL) (OTCQB: DGTHF) (FSE: A2QB0L) (\"DGTL\" or the \"Company\"), is pleased to announce the closing of a second and final tranche (the \"Final Tranche\") of its previously announced private placement offering of subscription receipts (\"Subscription Receipts\") and closing of its first tranche (the \"First Tranche\", together with the Final Tranche, the \"Offering\") on December 7, 2021. Under the Final Tranche, the Company issued 38 Subscription Receipts at an offering price of $1,000 per Subscription Receipt, for aggregate gross proceeds of $38,000, bringing the total number of Subscription Receipts issued pursuant to the Offering to 1,068 for aggregate total gross proceeds of $1,068,000. The completion of the Offering, satisfied a key condition to closing in the arrangement agreement between the Company and Engagement Labs Inc. (TSXV: EL) (\"EL\") dated August 11, 2021, as amended (the \"Arrangement\"). The gross proceeds of the Offering (the \"Subscription Receipt Proceeds\") are held by Garfinkle Biderman LLP (\"Garfinkle\"), in its capacity as subscription receipt agent, pursuant to the terms of a subscription receipt agreement entered into between DGTL and Garfinkle. Upon the satisfaction and/or waiver of certain escrow release conditions (the \"Escrow Release Conditions\") each Subscription Receipt will automatically be converted into a $1,000 principal amount Convertible Debenture (as defined below) and the Subscription Receipt Proceeds will be released. The Escrow Release Conditions shall include, without limitation, the completion of the Arrangement pursuant to a plan of arrangement and the delivery by DGTL of a notice to Garfinkle confirming such condition has been met. The Convertible Debentures will bear interest at an annual rate of 7.00% payable in arrears in equal installments semi-annually. The Convertible Debentures will mature two years following the satisfaction of the Escrow Release Conditions (the \"Maturity Date\") as will be further set out in debenture certificates to be issued upon conversion of the Subscription Receipts. The principal amount of the Convertible Debent...