Intrinsic4D Announces Default on Outstanding Debentures, CEO and Director Resignations and Financial Status and Solvency

TORONTO, ONTARIO--(Marketwired - Feb. 22, 2017) -

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Intrinsic4D Inc. (the "Corporation") (TSX VENTURE:IFD) announces today that it is in default under its 10.5% convertible debentures issued on May 17 2016 (the "Second Tranche Debentures") as a result of its failure to make the aggregate interest payments of $37,117 (the "Interest Payment") on or before February 17, 2017 on the $1,414,000 aggregate principal amount of the Second Tranche Debentures. The Second Tranche Debentures were issued as part of an offering of secured convertible debentures first announced by the Corporation via press release on December 18, 2015, and were the second tranche of convertible debentures issued subsequent to its first tranche of convertible debentures issued on March 17, 2016 (the "First Tranche Debentures") and prior to the third and final tranche of convertible debentures issued on June 1, 2016 (the "Third Tranche Debentures" and collectively with the First Tranche Debentures and the Second Tranche Debentures, the "Debentures").

Following its failure to make the Interest Payment on February 17, 2016, the Corporation has thirty business days to make the Interest Payment before triggering an Event of Default under the Second Tranche Debentures, after which the terms of the Second Tranche Debentures provide the debenture holders with certain rights and remedies. The Debentures have a maturity date of 60 months from the date of issuance and pay interest at the rate of 10.5% per annum calculated and paid quarterly in arrears. The Debentures are secured by all of the present and after acquired property of the Corporation, and its wholly owned operating subsidiary, Intrinsic4D LLC (the "Operating Subsidiary"), subject to, in the case of the Operating Subsidiary, the first security rights of Mosaic Makro Medical Partners LLC ("Mosaic") discussed below.

Effective February 16, 2017, Chris Schnarr has resigned as a director of the Corporation, and effective February 21, 2017, Jorey Chernett has resigned as director and the CEO of the Corporation. The board of directors has appointed Kyle Appleby, current CFO of the Corporation, as Interim CEO, to take effect immediately. Following the resignations the board of the Corporation presently consists of four members all of who are independent pursuant to applicable securities laws.