Calyx Ventures Announces Reinstatement of Trading and Provides Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - July 29, 2019) - Calyx Ventures Inc. (TSXV: CYX) (the "Company"), announces that it has received approval from the TSX Venture Exchange (the "Exchange") for the reinstatement of trading in its common shares. Effective at the opening of markets on Wednesday, July 31, 2019, trading in the common shares of the Company will resume on the Exchange under the ticker symbol "CYX".
Following the reinstatement of trading, the Company intends to focus on development of its fully integrated cannabis and hemp online platform "LeafHub", which can facilitate both retail and wholesale transactions from a single interface. The new version of "LeafHub" has been significantly redesigned and engineered to include many new features as well as a fully integrated messaging application and is expected to complete its "public" beta cycle within the next month, with full production capabilities available by year-end.
Following the reinstatement of trading, the Company intends to conduct a non-brokered private placement (the "Financing") to provide it with sufficient capital to continue development of the "LeafHub" platform. The Company also intends to conduct an annual general meeting (the "Meeting") of shareholders prior to September 30, 2019. Additional information regarding the terms of the Financing, as well as the date and time of the Meeting, and the matters to be presented to shareholders for approval at the Meeting, will be made available in due course.
The Company confirms that its board of directors no longer maintains a separate advisory board. The Company may elect to reconvene an advisory board in the future, depending on the stage of development of its product offerings.
Canada Blockchain Holdings Corp.
The Company's wholly-owned subsidiary, Canada Blockchain Holdings Corp. ("Canada Blockchain") previously operated a business involving the development of blockchain based applications for integration in the Company's "LeafHub" platform. Canada Blockchain was also involved in certain digital currency mining activities. The operations of Canada Blockchain did not meet profit expectations and, in connection with the 2018 year-end, the Company elected to cease all operations within Canada Blockchain.
Canada Blockchain previously engaged the services of a third-party consultant to assist with the ongoing maintenance and operations of its physical hardware assets, as well as to supply the power and infrastructure necessary to operate those assets on a day-to-day basis. In connection with the engagement, Canada Blockchain entered into a services agreement (the "Services Agreement") with the consultant which called for the payment of monthly cash fees in consideration for the services to be provided.
Following the decision to cease operations, the consultant asserted that a default existed under the Services Agreement. To address outstanding claims made under the Services Agreement, Canada Blockchain entered into a settlement agreement with the consultant (the "Settlement Agreement"). The Settlement Agreement provided for the resolution of all outstanding claims under the Services Agreement, in consideration for the transfer of certain hardware assets and equipment, and the issuance of common shares of the Company, to the consultant. The Company is currently reviewing claims of default made under the Services Agreement, and the circumstances under which the Settlement Agreement was entered into. While this review is ongoing, Canada Blockchain has not transferred title to any assets or equipment, nor has the Company issued any common shares, in connection with the Settlement Agreement. Additional information regarding this review, and the status of the Settlement Agreement, will be provided as it becomes available. The issuance of any common shares by the Company in connection with the Settlement Agreement is subject to the prior approval of the Exchange.
On behalf of the Board,
Calyx Ventures Inc.
Roger Forde, Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to regulatory approvals, the resumption of trading in the common shares of the Company, the intentions of the Company to conduct the Financing and convene the Meeting, the status of the Settlement Agreement, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Such risk factors may include, among others, the risk that the Company is unable to secure the financing necessary to sustain operations on terms acceptable to the Company, or that the third-party consultant may assert additional claims under the Services Agreement and the Settlement Agreement. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46588