October 29, 2014, Toronto, Canada – GC-Global Capital Corp. (GDE.A:TSXV) (“Global Capital”) is pleased to announce that it has participated in a private placement financing of Smart Employee Benefits Inc. (“SEB”) (TSXV symbol: SEB). SEB’s core expertise is managing specialized Big Data environments, of which healthcare and benefits claims processing is a major focus. SEB uses a SaaS business model to provide software solutions and services specializing in managing group benefit solutions and healthcare claims processing environments for corporate and government clients. Health Claims Processing in Canada is a $60.0 plus billion industry, of which over $36.0 billion is employee group benefit plans and over $25.0 billion is other healthcare benefit claims.
In connection with SEB’s two equity financings for an aggregate total of up to $3,000,000, Global Capital has invested $1,000,000. Global Capital’s investment in SEB consists of $1,000,000 of Equity Units (“Equity Units”). The Equity Units were issued at $0.50 per unit and each Equity Unit consists of one SEB common share and one SEB common share purchase warrant exercisable for a period of 36 months at $0.60 per share for year one and year two and $0.75 per share for year three. The President/CEO of SEB, through a personal holding company, subscribed for 550,000 of the Equity Units. Global Capital has also entered into a 3 year consulting contract with SEB for which it is receiving 1,400,000 options exercisable for 3 years at $0.50 per share. The options are subject to vesting provisions over six months
“We are pleased with our investment in SEB which we believe has the ability to emerge as a leader in the benefits administration and claims processing industry.” said Jason Ewart, Chief Executive Officer at Global Capital. He added “This financing will assist SEB in closing recently announced strategic acquisitions. In addition, Global Capital will be assisting SEB in its 2015 and go forward growth strategy, including identification of acquisitions, due diligence, closing of acquisitions, introductions to strategic relationships, introduction to domestic and international investor groups, financings and overall corporate direction. We have thoroughly reviewed the technology providers to the benefits industry in Canada and believe SEB is uniquely positioned to be a game changer in the industry. Their adjudication platform, based on an object oriented programming architecture, is unique in the industry. Rules creation is an administrative exercise, not a programing exercise as it is with all other adjudication environments. Our due diligence confirmed they are the only provider in the industry with a fully integrated ‘administration/adjudication/payment billing/reporting’ technology environment where all benefit types (eg, dental, drugs, paramedical, etc) can be administrated, adjudicated and reported on in one environment. It is the only platform we see that has self-serve reporting functionality. Further, SEB has the most automated and content rich “health and wellness” platform in Canada. We believe SEB has one of the most automated and comprehensive “Disability Management” solutions in the industry. SEB also has extensive systems integration expertise and specialty IT practice areas including most HRIS systems, CRM solutions, data migration expertise, to mention a few. We view this technology expertise as a ‘critical ingredient’ in transitioning legacy system environments to new technology solutions. The SEB benefit solutions are also global in their application. Every SEB technology environment has been built and modified with objective of “maximum flexibility”. We have found no other solutions in the industry as flexible, user friendly and as automated as the SEB solutions. Also, we know of no other benefit provider with the comprehensive suite of solutions that SEB has”.
SEB’s core expertise is managing specialized Big Data environments, of which healthcare and benefits claims processing is a major focus. SEB uses a SaaS business model to provide software solutions and services specializing in managing group benefit solutions and healthcare claims processing environments for corporate and government clients. Health Claims Processing in Canada is a $60.0 plus billion industry, of which over $36.0 billion is employee group benefit plans and over $25.0 billion of other healthcare benefit claims (e. g. workers’ compensation claims, travel benefits, various federal and provincial government programs, dental associations, drug associations, etc.). In the employee group benefits industry, SEB operates as a Third Party Administrator/Third Party Payor and Insurance Brokerage utilizing its software platform to provide “totally hosted PCI compliant supply chain solutions” for managing the complete group benefits business processes between insurers, clients, brokers, consultants, technology service providers and healthcare service providers. In healthcare claims processing, SEB also operates as a systems integrator utilizing its technology platform together with other technologies and specialized practice expertise to provide customized, fully integrated solutions for unique claims environments (e.g. travel claims, student benefits, hospitals, unique government applications etc.). The technology and expertise deployed in this area also allows SEB to provide other related supply chain, systems integration and human resource solutions and services to the same clients. SEB has unique expertise in tying legacy systems data to new systems environments while providing real time integrated access to the legacy systems data.
About Global Capital
Global Capital is a merchant bank, which provides financing and advisory services , to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global’s website at www.gcglobalcapital.ca .
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