- DGTL Holdings (DGTL) has agreed to amend some of the conditions of its agreement with Engagement Labs
- DGTL is now only required to complete C$1 million in financing as a condition to closing the acquisition
- Following the closing of the initial tranche, DGTL intends to close a second and final tranche for aggregate gross proceeds of $3 million
- The parties expect to complete the arrangement by mid-February 2022
- DGTL Holdings is a digital media and advertising technology company powered by artificial intelligence
- Shares in DGTL Holdings Inc. (DGTL) are up 5.41 per cent, trading at $0.195 per share
DGTL Holdings (DGTL) has agreed to amend some of the conditions of its agreement with Engagement Labs.
In the original agreement dated August 11, 2021, DGTL Holdings agreed to acquire all issued and outstanding common shares of Engagement Labs (EL) by October 1.
Now, the companies have signed an amendment to that agreement that will
- Extend the deadline for completing the arrangement to March 31, 2022;
- Reduce the size of the concurrent financing that DGTL must complete as a condition to closing; and
- Extend the deadline to complete the concurrent financing to December 15, 2021.
Originally, the agreement stated that DGTL would conduct a private placement for gross proceeds of US$2 million. According to the latest amendment, DGTL is only required to complete C$1 million in financing as a condition to closing the acquisition.
The updated concurrent financing will consist of a non-brokered private placement of subscription receipts for gross proceeds of $3 million.
DGTL will offer 3,000 subscription receipts at $1,000 each, which will automatically be converted into one $1,000 principal amount convertible debenture after satisfying certain escrow release conditions.
The initial tranche of the concurrent financing will allow DGTL to meet the financing condition of $1 million on December 2.
Following the closing of the initial tranche, DGTL intends to close a second and final tranche for aggregate gross proceeds of $3 million.
The parties have committed to using their commercially reasonable efforts to complete the arrangement by mid-February 2022.
DGTL Holdings is a digital media and advertising technology company powered by artificial intelligence.
Shares in DGTL Holdings Inc. (DGTL) are up 5.41 per cent, trading at $0.195 per share as of 1:21 pm EST.
