VANCOUVER, British Columbia, August 19, 2019
VANCOUVER, Canada – BLOK Technologies Inc. (“BLOK Tech” or the “Company”) (CSE: BLK) (FRANKFURT: 2AD) is pleased to announce it has entered into non-brokered private placement (the “Private Placement”) of 32,000,000 of its common shares pursuant to subscription agreements for a deemed value of $1,600,000, paid to the Company in the form of 49% of the issued and outstanding shares of VR Eyes Technology Corp. (“VR EYES”), a private Canadian corporation.
All securities issued in the financing will be subject to a statutory hold period expiring four months and one day after closing of the financing. Completion of the financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the Canadian Securities Exchange (the “CSE”). The Company will not be paying a finder’s fee on the transaction.
The Private Placement was approved by all the directors of the Company.
- Each common share of the Company entitles the shareholder to one vote at every meeting of common shareholders of the Company.
- There are four current shareholders of VR EYES and each one submitted a subscription agreement dated August 14, 2019 to the Company (the “Subscription Agreements”) for the acquisition of 8,000,000 of the Company’s common shares each at a deemed price of $0.05 per common share of the Company, payable in 12.25 common shares of VR EYES each.
- VR EYES currently has 100 common shares issued and outstanding. The total VR EYES shares to be paid to the Company in exchange for its 32,000,000 shares is 49% of the issued and outstanding shares of VR EYES. The Company will receive 49 common shares of VR EYES in the private placement. VR EYES and the shareholders of VR EYES are arm’s-length to the Company.
- VR EYES is not a party to this private placement; however, BLK is in talks with VR EYES and intends to provide its capital, technology and management expertise to VR EYES. No agreement has yet been reached for those services. In the event that an agreement is ever reached, the Company will not likely charge for its services as it will provide them with the intention of increasing the value of its investment in VR EYES. There are no assurances that the Company will reach an agreement with or provide services to VR EYES.
- The VR EYES shareholders have provided statutory declarations stating that they do not act as a group or in concert. This private placement will not result in a change of control.
- The price was determined by arm’s-length negotiation. The Company examined VR EYES’s unaudited, management prepared balance sheets as at July 9, 2019 and November 30, 2018, as well as other financial documents.
- The Company also visited VR EYES offices in Vancouver, examined the technology and proto-types and met with representatives of VR EYES regarding the technology and the company.
About VR Eyes Technology Corp.
VR Eyes Technology Corp. is a new innovative company that is researching and developing new technology for eye care. The company is focused on developing products that make detecting eye functions more convenient for the day to day user. The company was started in 2018, with the idea of making eye exams more convenient and accessible for daily people. VR EYES plans on introducing their first product in the North America market first and then expanding to different markets. The company main focus is the make eye care more convenient so more people will have up-to date annual checkups. Vision represents a ~ $36 billion industry comprised of services (~ $15 billion) and sale of corrective eyeglasses and lenses (~ $21 billion) with a steady expected growth of ~ 1-2%. Eye care services include exams, treatment for dry eye, glaucoma, cataracts, diabetes and muscular degeneration. The aging baby boomer’s generation will result in accelerating demand for eye care services. Over 65-year age group will grow 36.2% from 40.2 million in 2010 to 54.8 million in 2020.
About BLOK Technologies Inc.
BLOK Technologies Inc. is a public company that invests in and develops companies in the blockchain and emerging technology sectors. The Company’s approach is to provide capital, technology and management expertise to the companies it develops. BLOK Tech’s current portfolio includes Greenstream, a technology platform designed to effectively manage value transfer, supply chain integrity and identity verification in complex and highly regulated industries. This scalable and adaptable platform is being developed on the Hyperledger technology stack and with the support of Oracle Cloud infrastructure. BLOK Tech continues to grow its business into adjacent industries and emerging technologies. The Company systematically identifies early-stage technologies with potential to disrupt and innovate within their industry and invests the necessary resources to ensure the success of their projects.
For additional information regarding BLOK Technologies and other corporate information, please visit the Company’s website at BLOKTECHINC.COM
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Interim President & CEO
For further information, please contact:
James Hyland, B.Comm.
Interim President & CEO, Director
Tel: (604) 442-2425
Statements in this news release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the company can fulfill such forward-looking statements and the company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the company, some of which are beyond the company’s control.
1. VISION INDUSTRY OVERVIEW – Harris Williams & Co. (www.harriswilliams.com)