Toronto, Ontario--(Newsfile Corp. - October 2, 2018) - IntellaEquity Inc. (formerly Augusta Industries Inc.) (the "Corporation") is pleased to announce that on the opening of the market on October 4, 2018, the Corporation's common shares will commence trading through the facilities of the Canadian Securities Exchange ("CSE"). The common shares will trade under the symbol " IEQ".
The Corporation is also pleased to announce that it has completed the sale of its wholly owned subsidiary, Fox-Tek Canada Inc. to Mooncor Oil & Gas Corp. ("Mooncor") for an aggregate purchase price of $21.5 million (the "Purchase Price"). The sale of Fox-Tek was approved by a majority of the minority shareholders at the annual and special shareholders' meeting held on July 11, 2018.
$9,500,000 of the Purchase Price will be satisfied through the issuance of an aggregate of 47,500,000 post-consolidated common shares (the "Consideration Shares") in the capital of Mooncor at a price of $0.20 per Consideration Share. The balance of the Purchase Price, being up to $12,000,000, will be satisfied through a royalty of 15% on all future sales of Fox-Tek's products and a 20% royalty on all future sales of Fox-Tek's services (collectively, the "Royalty"). The Royalty shall be payable until the earlier of (i) the 10 year anniversary of the closing of the acquisition of Fox-Tek, and (ii) the aggregate payment of $12 million.
In addition, the Corporation will continue its operations as a diversified investment and merchant banking firm focused on public companies and commodities. The Corporation's proposed investment activities will include (i) public companies, (ii) near public companies and private capital, (iii) global venture capital initiatives and (iv) strategic physical commodities. However, the Corporation may take advantage of special situations and merchant banking opportunities, as such opportunities arise, and make investments in other sectors which the Corporation identifies from time to time as offering particular value.
In connection with the sale of Fox-Tek and its change of business, the Corporation changed its name from Augusta Industries Inc. to IntellaEquity Inc. and consolidated its issued and outstanding securities on the basis on ten pre-consolidated common shares for every one (1) post-consolidated common shares.
"The listing of the Corporation's common shares through the facilities of the CSE will allow the Corporation to carry out its objectives as a merchant bank," stated Allen Lone, Chief Executive Officer of the Corporation. "The cost effectiveness of a CSE listing will allow the Corporation to conserve its cash and deploy it to execute on proposed acquisitions."
About the Corporation:
IntellaEquity is a publicly traded Canadian based venture capital firm focused on opportunistic investments in companies in the industrial, artificial intelligence and blockchain sectors. The Corporation seeks to invest in early stage, promising companies where it may be the lead investor and can additionally provide investees with advisory services, mentoring and access to the Corporation's ecosystem.
Corporation contact:
Allen Lone, President, CEO,
IntellaEquity Inc.
Tel: (905) 275-8111 Ext 226, email:
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note regarding Forward-looking Statements
This news release includes certain information and forward-looking statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statementsCSE. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although the Corporation believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
