● Cease Trade Order has been revoked after a detailed review by BCSC and OSC
● DMG adds experienced crypto-mining Independent Director
● DMG provides an update on legal proceedings between the Company and Chris Filiatrault
VANCOUVER, British Columbia, Aug. 29, 2019 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain and technology company, is pleased to announce that the British Columbia Securities Commission, as principal regulator, has revoked the cease trade order (the “CTO”) issued against the Company as a result of the delay in the filing of the Company’s audited financial statements for the year ended September 30, 2018, and related filings (together, the “Filings”). The Company has applied to the TSXV for the reinstatement of trading of its common shares and anticipates it will resume trading shortly.
DMG has also appointed experienced crypto mining entrepreneur Nick Seto as an independent director to replace Mr. Neil Cave, who has resigned. The Company thanks Mr. Cave for his expertise as the Company completed the arduous regulatory review process. Ryan Cheung (Chief Financial Officer) has been appointed as Corporate Secretary to replace Diana Mark, who has also resigned but continues to assist DMG as a part-time consultant. Mrs. Mark’s professionalism and diligence has been very much appreciated by the Company and we wish her the very best in her future endeavors.
Chris Filiatrault v. DMG et al
DMG further announces that it and two founding directors, Daniel Reitzik and Sheldon Bennett, have been named as defendants in a petition filed in the Supreme Court of British Columbia (Christopher Filiatrault v. DMG Blockchain Solutions Inc., Daniel Reitzik and Sheldon Bennett) (the "Petition"). Mr. Filiatrault, a former director of DMG, is seeking a declaration that the affairs of DMG have been conducted, or that the powers of Mr. Reitzik and Mr. Sheldon as directors are being or have been exercised, in a manner that is oppressive or alternatively that is unfairly prejudicial to the shareholders, particularly including Mr. Filiatrault. Mr. Filiatrault seeks to replace Daniel Reitzik and Sheldon Bennett with himself and Mr. Simon Padgett who is also a former director of DMG.
DMG intends to vigorously defend these actions by Mr. Filiatrault and is reviewing all legal options available to determine its next course of action, including considering taking action against Mr. Filiatrault.
DMG continues to defend the other previous action brought by Mr. Filiatrault wherein he alleges that DMG owes him funds for his expenses and finder’s fees.
As previously disclosed, Bitmaster Inc. (a current hosting customer of DMG) withdrew its claim against DMG. DMG discovered that Mr. Filiatrault (who previously worked at Bitmaster Inc.) was assisting Bitmaster with its claim against DMG. Bitmaster has informed DMG that portions of its claim against DMG were not approved by them; however, the claim was nevertheless filed on behalf of Bitmaster without its full knowledge of the contents of the claim and with the assistance and involvement of Mr. Filiatrault.
DMG also discovered that Mr. Filiatrault contacted both the British Columbia Securities Commission and the TSXV, which may have further lengthened the CTO review process.
DMG regrets that these claims by Mr. Filiatrault are taking place; however DMG continues to remain focused on developing its business.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial scale crypto mine hosting – Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans and intentions, other potential transactions, reinstatement of trading of its common shares, acquisition of customers, product development, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. 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 the Company, including but not limited to, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
The securities of DMG are considered highly speculative due to the nature of DMG’s business.
Factors that could cause actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by third parties in respect of the matters discussed above.
Neither the TSX Venture Exchange nor its Regulation Service 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.