Mr. Jonathan Hoyles reports
PERK LABS ANNOUNCES AT-THE-MARKET EQUITY PROGRAM RENEWAL
Perk Labs Inc. has established an at-the-market equity program that allows the company to periodically issue and sell up to $4-million worth of common shares in the capital of the company from treasury to the public, at the company's discretion. All common shares sold under the ATM program will be sold through the Canadian Securities Exchange, or another Canadian marketplace (as defined in National Instrument 21-101 -- Marketplace Operation) upon which the common shares are listed, quoted or otherwise traded, at the prevailing market price at the time of sale.
Jonathan Hoyles, chief executive officer of Perk Labs, commented: "The previous ATM program of $2-million announced on July 29, 2020, has been a successful tool, providing Perk with a consistent flow of funds to execute on the intended plans and build our marketing campaign. The mobile commerce landscape in Canada and the U.S. [United States] is incredibly fruitful, and we want to be at the forefront of its advancement. Now more than ever, we feel the urgency to ramp up our marketing activities, especially as it relates to increasing the number of high-quality merchants on the app, by creating targeted digital campaigns. Therefore, Perk has made a strategic decision to renew the ATM program, preserving the flexibility of raising money through other types of financings, should the need and opportunity arise, as indicated in the prospectus supplement. We are looking forward to updating the market and our shareholders on the progress we are making in growing the business and raising the profile of the company."
The volume and timing of distributions under the ATM program, if any, will be determined in the company's sole discretion. Distributions of the common shares under the ATM program will be made pursuant to the terms of an equity distribution agreement dated Feb. 17, 2021, entered into between the company and Echelon Wealth Partners Inc.
The ATM program will be effective until the earlier of: (i) the issuance and sale of all of the common shares issuable pursuant to the ATM program; or (ii) the ATM program being terminated by the company or the agent in accordance with the terms of the distribution agreement. Perk Labs intends to use the net proceeds from the ATM program, if any, for: investment in sales and marketing initiatives to attract and sign up new merchants and users to the Perk Hero app; development of the Perk Hero app through a series of build-measure-learn iterations; and general working capital purposes. As common shares distributed under the ATM program will be issued and sold at the prevailing market price at the time of the sale, prices may vary among purchasers during the period of the ATM program.
The offering of common shares under the ATM program is qualified by a prospectus supplement dated Feb. 17, 2021, to the company's short form base shelf prospectus dated July 17, 2020, which were each filed with the applicable securities regulatory authorities in each of the provinces and territories of Canada. The prospectus supplement and the shelf prospectus are available under the company's profile on SEDAR. Alternatively, the agent will send copies of the prospectus supplement and the shelf prospectus upon request by contacting 1 Adelaide St. East, suite 2100, Toronto, Ont., M5C 2V9, or by e-mail at firstname.lastname@example.org, or by telephone at 416-572-5523.
Borden Ladner Gervais LLP acted as legal counsel to the company, and Goodmans LLP acted as legal counsel to the agent.
About Perk Labs Inc.
Perk Labs is the owner of Perk Hero, a digital loyalty management platform that enables merchants to provide their customers with digital rewards as well as a more-engaging and more-convenient customer experience.
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