NEPTUNE DASH TECHNOLOGIES ADDRESSES COVID-19, DROP IN CRYPTO PRICES AND ANNOUNCES SHARES FOR DEBT TRANSACTION
VANCOUVER, British Columbia, March 13, 2020 (GLOBE NEWSWIRE) -- Neptune Dash Technologies Corp. (“Neptune” or the “Company”) announces that the Company will be
taking additional measures to ensure all management and associates protect their personal health and maintain operations functioning as normal during this challenging time. The Company reiterates
that all Crypto assets remain safe in cold storage with numerous redundancies in place and both the Dash masternodes and delegated ATOM can be managed remotely.
“This is a very challenging time for the general public and investors. We remain committed to providing a well run and safe exposure vehicle. Our crypto revenues will not change during this time and operations will be maintained in full working order from a distance to ensure the safety of our team. These are price fluctuations in a panic driven market and we firmly believe the rebound will be as strong as the sell-off. As such, for additional precaution we have chosen to cut costs further and clear debt off our balance sheet through share issuances and thus preserving capital.” Stated Cale Moodie, Neptune’s CEO.
Additionally, Neptune’s board of directors has approved the settlement of up to $221,860 of debt through the issuance of common shares of the Company (the "Debt Settlement"). Pursuant to the Debt Settlement, the Company would issue up to 3,892,279 common shares of the Company (the "Shares") at a deemed price of $0.057 per Share to certain creditors of the Company comprised of certain of its directors and officers as well as Neptune Asset Group Inc., a company sharing two common directors with the Company (the "Creditors").
Directors and officers of the Company will participate in the Debt Settlement by converting $121,860 of their outstanding consulting, management and director's fees into a total of 2,137,894 Shares. In addition, creditor, Neptune Asset Group Inc., will also participate in the Debt Settlement by converting its outstanding debt of $100,000 into a total of 1,754,385 Shares.
The issuance of the Shares to the Creditors is subject to the approval of the TSX Venture Exchange. All securities issued will be subject to a four month hold period which will expire on the date that is four months and one day from the date of issue.
The Debt Settlement involving the directors and officers of the Company will, in each case, constitute a “related party transaction” under Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company intends to rely on the exemptions from the valuation and the minority approval requirements of MI 61-101 provided for in subsections 5.5(a) and 5.7(a) of MI 61-101, respectively, as the fair market value of the subject of, and the consideration paid in the Debt Settlement, in each case, in relation to the interested parties, will not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101.