Labrador Resources Inc V.LTX

Information about LTX for NEW Shareholders wellTriever

[Money2015]

Complete the Strategic Development of wellTriever 

In late February 2015, the Corporation released a major rewrite of wellTriever (“wellTriever 2015) that included significant Map improvements, additional “map” reporting, and an interactive “viewer” for its Production History and Production Well Events reports. As a result, the Corporation experienced an immediate and significant increase in registered users. Direct revenue from transactions remains modest in the early going but there has been increased interest in licensing the Corporation’s eTriever product, primarily from the wellTriever account owners – eTriever is an excellent next step-up from wellTriever for customers who are looking for a more complete data retrieval and reporting solution. 

With the rewrite of wellTriever, management is also seeing more market interest in licensing the wellTriever Map Web-Service that will enable the bringing together of the public data wellTriever currently accesses together with the customer’s proprietary data, using a common User Interface. Petro-LABTM, the 

Corporation’s most successful product offered the same unique combination of accessing public and proprietary data with the same User Interface. 

Although wellTriever requires additional development to attract new paying clients and augment the revenue from our existing clients, management can now draw on the feedback of an ever-increasing base of new customers to map out its continuing development pathway. 

Market & License wellTriever MAP Web-Service 

As noted above, the Corporation released its rewrite of wellTriever that included significant improvements to the wellTriever Map Web-Service. Accordingly, the Corporation has commenced discussions to license its Map Web-Service to customers looking to jointly access their own proprietary data and the public data wellTriever currently accesses. Although these discussions are preliminary, management continues to be optimistic about the revenue potential of this initiative.

Secure Additional Financing 

The Corporation continues to pursue innovative avenues to secure additional financing to fund general working capital, R&D, and an appropriate marketing/sales plan. During the three months ended January 31, 2015, $170,000 was raised from loans from Officers & Directors and a Private Placement in conjunction with a Gypsy Swap for $100,000 was announced on January 27, 2015 with the expectation to close in fiscal Q2 2015. 

Improve the Corporations’ Statement of Financial Position 

Pursuant to approval of the shareholders at the October 2, 2014 Annual and Special General Meeting, the Corporation continues the plan to consolidate the current 112 million outstanding shares up to 15 current shares for 1 consolidated share. In addition, management is planning to have discussions with certain debt holders to convert their debt to common shares. Management is targeting a reduction in the current working capital deficiency of $2.0 million in the range of $1.0 million to $1.2 million. The expected debt conversion is based on the assumption that current Officers and Directors will agree to convert amounts owing to shares. This proposed debt conversion to equity and the share consolidation should assist the Corporation to be in a better position to attract additional financing for Sales and R&D, while maintaining a low monthly burn rate. The expected timing for the share and debt conversion is Q3 2015. However, the conversions are subject to final Board of Directors and Regulatory approvals.