ZTEST Closes Initial Investment in Twenty49 Ltd.
Friday, March 8, 2019 7:45 AM
TORONTO, ON / ACCESSWIRE / March 8, 2019 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE) today announced that, further to its Press Release of January 30, 2019, it has closed its initial investment in Twenty49 Ltd ("Twenty49"), based in Waterloo, Ontario, and operating in the US through its wholly owned subsidiary. Twenty49 is a technology company, developing technology for 4 business units:
- Data420, Fiscal420 and AI420 which focus on collecting information through proprietary hardware and software, and then packaging and selling data to all operational levels of the cannabis industry; and
- Fiscal420 which will provide US cities and townships with the ability to automate the collection of cannabis sales taxes from all companies selling cannabis in their jurisdictions.
The Company acquired 5,600,000 founder shares representing not less than 30.27% of the issued and outstanding shares of Twenty49 in consideration for the payment of $112,000. The Company was also issued an option to acquire 8,200,000 further shares of Twenty49 exercisable at $0.025 CDN per share, or $205,000 in total, on or before May 31, 2019 (the "Option"). A subsequent round of financing will be completed by Twenty49 on or before May 31, 2019 and if the Company chooses to exercise the Option, it will hold not less than 34.84% of the voting securities of Twenty49 Ltd. after giving effect to the subsequent round of financing.
The Company will enter into a Unanimous Shareholders Agreement ("USAgr") with the shareholders of Twenty49 pursuant to which ZTEST will have certain pre-emptive rights with respect to future offerings of Twenty49 securities, and a right of first refusal on any sales or other transfers of Twenty49 shares among existing Twenty49 shareholders, as well as representation on the board of Twenty49. The USAgr also contemplates that ZTEST's subsidiary, Permatech Electronics Corp., will have certain rights with respect to the manufacture of electronic hardware for Twenty49 and that Twenty49 will have the right to obtain a non-exclusive license, on commercially reasonable terms, to use the distributed ledger software developed by Conversance Inc., in connection with its business. Conversance is a Waterloo, Ontario based software company in which ZTEST currently holds a 25.29% equity interest.
Dave Hwang, Founder and CTO of Twenty49 commented that "our first order of business is to finalize Partnership Agreements with consulting companies in the US, that have been inundated with requests from their clients, for (i) Impact Reports on how to participate in the exploding cannabis/CBD market place, and/or (ii) Strategic Go to Market Plans. Members of our Twenty49 team have provided data insights for the hospitality industry to these consulting companies in the past. Now that the Founders of Twenty49 are focused on the cannabis/ CBD industry, the same industry contacts are once again reaching out for data insights".
About Twenty49 Technologies Inc.
Twenty49, based in Waterloo, Ont., and founded by David Hwang, is focused on providing a suite of technologies that enable cannabis entities to boost operational efficiencies and increase revenues. Mr. Hwang is a physicist by training with a wide-ranging background including startup CEO (with several successful exits mostly in the Hospitality space), Hedge Fund Quant, and cannabis entrepreneur. Mr. Hwang will be leveraging his data monetization experience in hospitality technology and simply applying these past learnings to the nascent cannabis vertical. Mr. Hwang is a sought-after speaker on the subject of data monetization (TEDx Raleigh, BigDataTech Talks, etc.) and has received several honours including; RSPA Most Innovative Solution Award, Big Data Innovation Summit (Finalist).
About ZTEST Electronics Inc.
ZTEST Electronics Inc., through its wholly owned subsidiary Permatech Electronics Corp. ("Permatech"), offers Electronic Manufacturing Services (EMS) to a wide range of customers. Permatech's offering includes Materials Management, Printed Circuit Board (PCB) Assembly, Testing and Design services. Permatech operates from a 20,000 square foot, ISO 9001:2015 certified facility in North York, Ontario, Canada. The company serves customers in the Medical, Power, Computer, Telecommunications, Wireless, Industrial and Consumer Electronics markets requiring high quality, quick-turnaround, small and medium size production runs. ZTEST also holds a 25.29% equity interest in Conversance Inc. ("Conversance").
About Conversance Inc.
Conversance, a private company based in Waterloo, Ont., founded by Mr. Chen, is focused on developing and marketing proprietary artificial-intelligence supported distributed ledger technologies. Mr. Chen is an electrical engineer with a strong background in radio frequency, digital signal processing, VLSI (very-large-scale integration), complex systems, chemistry and physics. Mr. Chen joined Research in Motion (now BlackBerry) in 1999, becoming a senior member of the office of the chief technology officer, where he was instrumental in many of Blackberry's key telephony innovations and patents. While at BlackBerry, the office of the CTO first began looking into blockchain in 2008.
For more information contact:
Steve Smith, CEO
email: [email protected]
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: ZTEST Electronics Inc