CALGARY, CANADA (TSX-V: MKT)
DEEPMARKIT ANNOUNCES AGM RESULTS AND SHAREHOLDER APPROVAL FOR CONSOLIDATION AND NEW CONTROL PERSON
Calgary, Canada – August 2, 2019 – DeepMarkit Corp., (“DeepMarkit” or the “Company”) (TSX-V:MKT) is pleasedto announce that its shareholders approved (i) the consolidation of its outstanding common shares (“Common Shares“), and (ii) Hong Kong Datang Investment Holding Group Co., Limited (“HK Datang“) as a new “control person” of the Company. It is expected that the Company’s Common Shares will begin trading on a post-consolidated basis on the TSX Venture Exchange (“TSXV“) 3-5 days following receipt of TSXV approval.
At the annual general and special meeting of shareholders held on August 1, 2019 (the “Meeting“), shareholders of the Company approved the consolidation of the Company’s Common Shares on the basis of one (1) post-consolidation share for every ten (10) pre-consolidation shares (the “Consolidation“), and as well approved HK Datang as a new “control person”. In addition, shareholders of the Company elected each nominated director, appointed Crowe MacKay LLP, Chartered Accountants as the auditors of the Company, and re-approved the Company’s incentive stock option plan.
As previously announced, the Company has entered into a strategic investment agreement with HK Datang, an arm’s length, private Hong Kong investment company. Under the terms of the Investment Agreement, HK Datang, subject to certain conditions, will acquire 29,527,120 post-consolidation common shares at a price of $0.075 per share (post-consolidation), for total subscription proceeds of $2,214,535 (the “Transaction“).
Following completion of the Transaction, HK Datang will own approximately 72% of the outstanding post-consolidation common shares and accordingly, will result in a change of control of DeepMarkit. Completion of the Transaction remains subject to certain conditions, including approval of the Consolidation and Transaction by the TSXV.
The Company currently has 114,827,733 Common Shares issued and outstanding. Following completion of the Consolidation the Company will have approximately 11,482,773 Common Shares issued and outstanding, before giving effect the Transaction. The Company will not be changing its name in connection with the Consolidation.
The Company expects to complete the Transaction following receipt of TSXV approval. For more details regarding the Transaction, please see the Company’s news release dated June 24, 2019, as well as the investment agreement between HK Datang and the Company, each of which are filed on the Company’s profile at www.sedar.com.
About HK Datang
HK Datang is a Hong Kong headquartered investment holdings company focused on investment and business incubation as well as brand growth and expansion. HK Datang is controlled by Chongqing Tangsen Network Technology Ltd., a private Chinese company (“Tangsen“). Tangsen is a software, technology and R&D company which, among other activities, operates a China-focused e-commerce platform posed to become a cross-border e-commerce platform. Tangsen is controlled by two individuals, Yanyan Cai and Shouying He, both of whom are expected to join the DeepMarkit Board, subject to approval by the TSXV.
The minority shareholder of HK Datang is Datang Telecom, a Chinese national telecommunications company.
DeepMarkit is an ecommerce technology company inventing new ways to engage consumers and other audiences. The Company’s proprietary platform enables online merchants to create a wide variety of branded marketing displays and promotional campaigns that incentivize customers, thus driving sales, capturing data and generating leads.
DeepMarkit’s shares are listed on the TSX Venture Exchange, symbol MKT. To try out our games and see the power of the platform, please visit www.deepmarkit.com
For more information, please contact:
President & CEO
Darold H. Parken
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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 news release.
Statements in this press release may contain forward-looking information including, statements regarding the potential investment by HK Datang or the required shareholder and regulatory approvals. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of DeepMarkit. Factors that could cause the actual results to differ materially from those in forward-looking statements include, but are not limited to, failure to obtain necessary regulatory approvals, the failure to close the proposed investment transaction as a result of due diligence investigations or other causes. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this press release are made as of the date of this press release and DeepMarkit does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
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