(TheNewswire)
Calgary, Canada - TheNewswire - November 8, 2021 - DeepMarkit Corp. (“DeepMarkit” or the “Company”) (TSXV:MKT)(OTC:MKTDF) is pleased to announce that it has completed the previously announced (September 14, 2021) debt conversion, in which it has issued an aggregate of 13,360,974 common shares ("Common Shares") pursuant to the conversion of debt in the aggregate amount of $2,739,000 (the "Debt Conversion").
All Common Shares issued pursuant to the Debt Conversion were issued at a price of $0.205 per Common Share. The Debt Conversion comprised two components, conversion of the Company's $2 million of 12% Secured Participating Debentures (the “Debentures”), plus accrued interest of $700,000, resulting in the issuance of 13,170,731 Common Shares (the "Debenture Conversion"), and the conversion of $39,000 of previously incurred and unpaid management fees, resulting in the issuance of 190,243 Common Shares (the "Management Fee Debt Conversion").
The Common Shares issued pursuant to the Debenture Conversion were issued to 1323552 B.C. Ltd., a private company owned and controlled by Ranjeet Sunder, a director and founder of the Company. All Common Shares issued pursuant to the Management Fee Debt Conversion were issued to Mr. Sundher.
The Company obtained disinterested shareholder approval for the Debt Conversion at its annual and general meeting of shareholders held on October 29, 2021, including approval for the Debt Conversion as a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9 of the TSX Venture Exchange (the "Exchange"), approval of 1323552 B.C. Ltd. as a Control Person of the Company (as defined in the policies of the Exchange), and approval to convert the full amount of the management fees owing to Mr. Sundher, as required under Exchange policies. All other matters put forth to shareholders at the meeting were also approved.
The Debt Conversion is intended to improve the financial condition of the Company as the Company had insufficient cash on hand, and no immediate source of cash that would be sufficient to satisfy the debt. In addition, the Debt Conversion is expected to enhance the ability of the Company to attract capital on a cost-effective basis and to improve the ability of the Company to attract acquisition, business or other corporate opportunities.
All Common Shares issued pursuant to the Debt Conversion are subject to a four month hold period required under applicable securities laws and the policies of the Exchange.
In addition, the Company announces that it has appointed Ranjeet Sundher as Interim Chief Executive Officer, replacing Darold Parken who remainsthe President anda director of the Company.
The Debt Conversion completes DeepMarkit’s capital reorganization which comprised the recently completed working capital injection, the elimination of all corporate debt and the establishment of a new controlling shareholder who has been instrumental in the development of our current business and technology. Management and shareholders are aligned with the intention to seek out acquisitions to expand DeepMarkit’s business of data driven software tools for businesses of all types and sizes. New software tools and business models with which we can leverage our extensive investment in the DeepMarkit platform will be the foundation of our new path to the goal of creating value for our shareholders.
Several new opportunities are currently being evaluated and additional opportunities will be sought.
Early Warning Disclosure
Ranjeet Sundher held, directly and indirectly, 95,000 Common Shares directly prior to the Debt Conversion, representing approximately 1.31% of the issued and Common Shares. Pursuant to the Debt Conversion, Mr. Sundher acquired, directly and indirectly through 1323552 B.C. Ltd., 13,360,974 Common Shares, resulting in aggregate ownership of approximately 65.42% of the issued and outstanding Common Shares of the Company. Mr. Sundher has no additional options, warrants, or other securities convertible or exchangeable for Common Shares. All Common Shares held by Mr. Sundher are held for investment purposes and Mr. Sundher has no present intention to dispose of or acquire further Common Shares. In the future, Mr. Sundher may, from time to time, increase or decrease his direct and indirect ownership, control or direction over Common Shares or other securities of the Company through market transactions, private agreements or otherwise, depending on market conditions and other relevant factors.
A copy of the early warning report filed by Mr. Sundher in connection may be obtained by contacting Mr. Sundher, at 403-537-0067, and will be available under the Company's profile on SEDAR at www.sedar.com.
About DeepMarkit
DeepMarkit is a technology company focused on creating new tools and technologies to aid businesses in sales development and increasing profitability.
DeepMarkit’s Common Shares are listed on the TSX Venture Exchange, symbol MKT.
For more information, please contact:
Interim CEO
Ranjeet Sundher
Tel: 403-537-0067
Email: corp@deepmarkit.com
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.
CAUTIONARY STATEMENT
Statements in this press release may contain forward-looking information. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including statements relating to the company's ability to attract capital and to identify and complete acquisitions. 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 final regulatory approvals and the failure to find or complete new business acquisitions. 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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