IntellaEquity to Issue Return of Capital to Shareholders and Amends Warrant Terms
Toronto, Ontario--(Newsfile Corp. - December 12, 2018) - IntellaEquity Inc. (CSE: IEQ) (the "Corporation" or "IntellaEquity") announces today that it intends to distribute an aggregate of 25,611,487 common shares (the "Sensor Shares") in the capital of Sensor Technologies Corp. ("Sensor") to shareholders of the Corporation by way of a return of capital.
The Sensor Shares will be distributed to resident holders of IntellaEquity shares (the "Distribution"). The Distribution will be paid on the basis of one (1) Sensor Share for every one (1) IntellaEquity shares outstanding. The Distribution will be completed through two (2) distributions, one distribution of 12,805,743 Sensor Shares and the second distribution of 12,805,744 Sensor Shares. The first distribution will be distributed to holders of IntellaEquity shares on record as of close of business January 15, 2019. The record date of the second distribution will be fixed by the board of directors of the Corporation.
IntellaEquity shareholders are not required to pay for the Sensor Shares they receive by way of the Distribution, to tender or surrender their IntellaEquity shares, or to take any other action in connection with the Distribution, other than providing a declaration of residency.
No Sensor Shares will be issued to shareholders who are (or are deemed to be) non-residents of Canada. Rather, such Sensor Shares will be delivered to a custodian and non-residents will be required to forward to the custodian the amount of withholding tax that such shareholder is required to pay. In the event that the shareholder does not forward such amount, the custodian shall retain such number of Sensor Shares necessary to cover the amount of the withholding tax payable. The balancer of the Sensor Shares will be forwarded to the shareholder.
Shareholders who fail to provide a declaration of Canadian residency in the form that will be provided will be deemed to be a non-resident for these purposes. Canadian shareholders who hold their shares in the Corporation through a brokerage or other account are therefore urged to contact their brokers to avoid being deemed a non-resident.
The Corporation also announces that it has amended the exercise price and extended the expiry date of the 994,000 outstanding common share purchase warrants (the "Warrants") of the Corporation, which were issued in connection with a private placement completed on December 18, 2015. Each Warrant, as amended, entitles the holder thereof to purchase one common share of the Corporation at any time until the close of business on December 18, 2020 at an exercise price of $0.10 per common share.
The Warrants will be amended, effective December 18, 2018, to amend the exercise price of the warrants from $1.50 to $0.10 and to extend the term of such warrants from December 18, 2018 to December 18, 2020. All other provisions of the Warrants will remain the same. Insiders of the Corporation do not hold any of the outstanding Warrants.
Sensor Technologies Corp. is a publicly listed company whose shares trade through the facilities of the CSE under the symbol "SENS". The company develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
About the Corporation
IntellaEquity is a publicly traded company, it is a diversified investment and venture capital firm focused on providing investors with long-term capital growth by investing in a portfolio of undervalued companies and assets. The investment portfolio may be comprised of securities of both public and private issuers primarily in technology, artificial intelligence, blockchain and may also include investments in certain other sectors, including water, green energy, and alternative energy. Target investments shall encompass companies at all stages of development, including pre-initial public offering and/or early-stage companies requiring start-up or development capital, as well as intermediate and senior companies.
President and CEO
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note regarding Forward-looking Statements
This news release includes certain information and forward-looking statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although the Corporation believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.