Montreal, Quebec, November 2, 2021 – (CSE: EMER) Emergia Inc. (the “Corporation or “Emergia”) is pleased to announce that, subject to regulatory approval, it has completed the first 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.
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. 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.
“This closing marks an important milestone in Emergia’s timeline in its financial repositioning, allowing the Corporation to reduce significantly its short-term debt and to start development projects to pursue its objective of growth and valuation of its assets”, said Henri Petit, President and CEO of Emergia.
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:
T: 1.888.520.1414 (Ext. 231)
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 effect of the COVID-19 pandemic on the Corporation’s financial condition, the anticipated closing of the Private Placement, business strategy and plans, and objectives of or involving the Corporation. The forward-looking information is based on certain key expectations and assumptions made by the Corporation, including expectations and assumptions concerning satisfaction of all conditions of closing, absence of exercise of any termination right and the timing and receipt of regulatory approval with respect to the Private Placement and the issuance of the private placement shares 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.