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EQ Inc. Announces Financing of $1,534,000 of Non-Convertible Secured Promissory Notes and Issuance of Bonus Warrants

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EQ Inc. Announces Financing of $1,534,000 of Non-Convertible Secured Promissory Notes and Issuance of Bonus Warrants

Toronto, Ontario (FSCwire) – EQ Inc. (TSX-V: EQ) (the “Corporation”) a leading North American location and behaviour data intelligence company, is pleased to announce a debt financing of $1,534,000 non-convertible secured promissory notes (the “Promissory Notes”) to certain arm’s length and non-arm’s length lenders. The Corporation intends to close the financing on February 19, 2018. The Promissory Notes will bear interest at a rate of 10% per annum, calculated annually, and will mature eighteen months from the date of issuance.

The lenders will receive up to 2,300,578 non-transferable warrants (the “Bonus Warrants”), with each Bonus Warrant being exercisable for a period of eighteen months from the date of issuance for one common share of the Corporation (a “Bonus Share”) at an exercise price of $0.60 per Bonus Share. All Bonus Shares will be subject to a hold period for four months from the date of issuance of the Bonus Warrants in accordance with applicable securities law.

The Promissory Notes and the Bonus Warrants remain subject to the final acceptance of the TSX Venture Exchange (the “TSX-V”).

The Corporation expects to use the proceeds from the issuance of the Promissory Notes to refinance a portion of its currently outstanding non-convertible secured promissory notes (the “Existing Promissory Notes”) and for working capital requirements. Upon completion of the financing, the Company will have reduced its debt and interest obligations by 40% and will have approximately $2.3 million of Promissory Notes and Existing Promissory Notes issued and outstanding.

An aggregate of $772,710 of the Promissory Notes were purchased by non-arm’s length lenders, being Vernon Lobo, the Chairman and a director of the Corporation, Geoffrey Rotstein, the President, Chief Executive Officer and a director of the Corporation, and Dilshan Kathriarachchi, the Chief Technology Officer of the Corporation.

The issuance of the Promissory Notes and the Bonus Warrants constitutes a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Holders in Special Transactions (“MI 61-101”). The Corporation is relying, however, on an exemption from the valuation and minority voting requirements of MI 61-101.

About EQ Works

EQ Works (www.eqworks.com) provides a smarter way to target customers using Location Behavior. Using first-party, location-based behavior signals, advanced data analytics, and proprietary software, EQ Works creates and targets customized, performance-boosting audience segments. Proprietary algorithms and data, combined with Artificial Intelligence, generate attribution models that connect consumer behavior in the physical world to behavior in the digital world, helping solve complex challenges for brands and agencies.

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Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release may contain forward-looking statements that are based on management’s current expectations and/or assumptions relating to, among other things, the completion of the transactions contemplated herein and the use of proceeds from the issuance of the New Promissory Notes, and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect any of the Corporation’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Corporation’s forward-looking statements. The Corporation is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

EQ Inc.

1235 Bay Street, Suite 401| Toronto, Ontario |M5R 3K4

p: 416.597.8889

press@eqworks.com

www.eqworks.com

To view the associated document to this release, please click on the following link:

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