SEB Closes $8,775,000 of New Senior Credit Facilities

March 10, 2015 - TORONTO, ON - Smart Employee Benefits Inc. (“SEB” or the “Corporation”) (TSX VENTURE:SEB), is pleased to announce the closing of new credit facilities with a major Canadian Schedule I bank in the amount of $8,775,000. The credit facilities were obtained by Paradigm Consulting Group Inc. (“Paradigm”) and SOMOS Consulting Group Ltd. (“SOMOS”), both wholly owned subsidiaries of SEB.

The new financing arrangements include a $4,200,000 term loan acquisition facility which was used in connection with the Corporation’s acquisition of Paradigm. The acquisition facility bears interest at the Canadian Dollar Prime Rate (the “Prime Rate”) to Prime Rate plus 1.75%, depending on the amount advanced under the facility, has a term of 3 years and may be repaid at any time without penalty.

Paradigm has also obtained a $3,000,000 operating demand facility, bearing interest at the Prime Rate plus 0.75% to 1.75%, depending on Paradigm’s debt to EBITDA ratio, along with a $50,000 corporate credit card.

At the same time, SEB’s wholly owned subsidiary, SOMOS, has entered into a new credit facility with the same Canadian bank to replace the current credit facility of SOMOS. The new SOMOS facility consists of a $1,500,000 operating demand loan bearing interest at the Prime Rate plus 1.875% and a $25,000 corporate credit card.

Both Paradigm’s new credit facilities and the new SOMOS facility are secured by a first charge over all of the assets of certain subsidiaries of the Corporation, contain positive, negative and financial covenants, and include other usual and customary terms and conditions. The Corporation, Paradigm, SOMOS and certain other subsidiaries have provided guarantees pursuant to the new credit facilities.

ABOUT SEB: SEB’s core expertise is managing specialized Big Data environments, of which employee benefits and healthcare is a major focus. SEB is a technology company providing, via a SaaS business model, software, solutions and services specializing in managing group benefit solutions and healthcare claims processing environments for corporate and government clients. Health Claims Processing alone is a $60.0 plus billion industry, of which over $37.0 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 to provide customized, fully integrated solutions for specialized 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.

Forward-Looking Statements: This news release is intended for information purposes only. Statements made in this news release may contain “forward looking” information about the company’s future business prospects. These statements while expressed in good faith and believed to have a reasonable basis are subject to risk and uncertainties that could cause actual results to differ materially from those set forth or implied by such forward looking statements. Investors should consult a professional advisor before making any investment decision.

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