Montreal, Quebec, November 30, 2021 – (CSE: EMER) Emergia Inc. (the “Corporation or “Emergia”) is pleased to announce that it has completedthe second closing of a private placement of up to $5,000,000 of convertible debentures (the “Debentures”). This first closing was completed for an amount of $2,000,000 and the second closing for an amount of $1,000,000 for a total amount of $3,000,000 under this private placement.

The Debentures bear interest at the rate of 8% per year, accruing in arrears, payable semi-annually in cash or in Class A Common Shares (the “Shares”) of the Corporation issuable at a price equal to 10-day average closing price of the Shares on the Canadian Securities Exchange on the date prior to the applicable interest payment date less 15%. The Debentures are convertible at the holder’s option into one unit (the “Units”) of the Corporation at a conversion price of $0.85. Each Unit is composed of one Share in the capital of the Corporation and two (2) warrants of the Corporation: (i) a warrant of the Corporation entitling the holder thereof to purchase one Share at a price of $1.25 per Share until October 31, 2023 and (ii) a warrant of the Corporation entitling the holder thereof to purchase one Share at a price of $1.50 per Share until October 31, 2024. In the event that, during the term of the Debentures, the volume weighted trading price of the Shares for the last 20 days on the Canadian Securities Exchange is equal to, or greater than $1.50 per Share, then the Corporation may force the conversion of the Debentures into Units.

The Corporation also announces today that it has filed, at the end of the day yesterday, its unaudited interim condensed financial statements, ‎management’s discussion and analysis and related certifications for the nine-month period ended September 30, 2021.

“We are very proud to say that difficult times are now behind and that we can now look forward and pursue our business plan that include acquisitions, development projects and value creation.” said Henri Petit, Chief Executive Officer of the Corporation.  “Emergia’s current situation is particularly rewarding after now close to three years of hard work from the whole team. I would like to thank all of our people who have worked so diligently through this challenging period and our shareholders and creditors for their continued support. Their perseverance, patience and confidence has allowed us to succeed in this transformation.”

The highlights for the nine-month period ended September 30, 2021 and as of the date hereof are set out below. More detailed information are contained in the Q3-2021 financial statements and related management discussion and analysis are available on SEDAR at www.sedar.com. 

Highlights

• Significant reduction of the short-term debt through new equity and debt conversion in shares and convertible debentures with standard terms and conditions and through conversion of short-term debt in long-term debt by current lenders. Since the beginning of 2020, we managed to reduce the short-term debt from $62,600,000 to $16,400,000;

• Closing of $13,200,000 in private placement (units and convertible debentures), comprising debt conversion and cash, between July 2020 and today, including the second closing announced today;

• Disposing of assets that did not fit in the Corporation’s business model;

• Expending Emergia’s operations in Ontario by acquiring a 100-acre land in Alliston, which is expected to generate significant value, and ensuring the Corporation’s expansion in Ontario;

• Creating a joint venture to ensure an early development of Emergia’s project in Dorval, which is expected to be launched in Q1-2022, subject to final approval by the City of Dorval in Q4-2021.

NOW, Q4 2021 shall be the period to prepare the grounds for the 2022 plan of action, oriented to:

• The launching of development projects in the provinces of Quebec (Bromont and Dorval) and Ontario (Alliston);

• Proceed to the acquisition of revenue generating properties in line with Emergia’s business model;

• Further capitalize the Corporation;

• Generate recurring profits.

About emergia Inc.

EMERGIA operates mainly in Canada in the development, acquisition and management of multi-purpose real estate, including retail, multi-residential, industrial, and office buildings as well as land for future development. The Corporation’s investment platform is based on an integrated, agile and efficient develop-to-own strategy that enables EMERGIA to benefit from development profits and the value-add while securing stable long-term returns.

For more information, please visit www.emergia.com and www.sedar.com. EMER.CN

Source: Emergia Inc.
For more Information, please contact:

Henri Petit
CEO
T: 1.888.520.1414 (Ext. 231)
E: hpetit@emergia.com 

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by looking for words such as “about”, “approximately”, “may”, “believes”, “expects”, “will”, “intend”, “should”, “plan”, “predict”, “potential”, “project”, “anticipate”, “estimate”, “continue” or similar words or the negative thereof or other comparable terminology. Such forward-looking information includes, without limitation, statements with respect to the anticipated closing of the private placement, the execution of the Corporation’s growth strategy and plans, and objectives of or involving the Corporation, including its 2022 plan of action. The forward-looking information is based on certain key expectations and assumptions made by the Corporation, including expectations and assumptions concerning receipt of regulatory approval with respect to the private placement and the availability of capital resources. Although the Corporation believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the effect of the COVID-19 pandemic on the Corporation’s financial condition, the real estate industry, and society as a whole.the market for the common shares, volatility of market price for common shares and other risks generally attributable to the business of the Corporation. For additional information with respect to risks and uncertainties, refer to the annual MD&A of the Corporation for the year ended December 31, 2020 filed on SEDAR at www. sedar.com.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.