VANCOUVER, British Columbia, July 11, 2019 (GLOBE NEWSWIRE) -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE: BLK) (FRANKFURT: 2AD) wishes to provide a corporate update on its developments and outline expected strategies and update on the previous signed Letter of Intent ("LOI") with Sierra Blockchain, Inc. (“SIERRA”).
The Company signed an extension with SIERRA on the LOI until July 31st, 2019 as both companies are working through the due diligence process. The Company is working through a legacy investigation and while adhering to all policies and directives as proscribed by our regulators, the Company is actively trying to move through this troubling issue with our shareholders’ interests front and centre, and as a result the due diligence on the SIERRA transaction has taken longer than expected.
The Company announced on June 26th, 2019 by way of a non-brokered private placement (the “Private Placement”) of up to a maximum of 25,000,000 common shares (“Common Shares”) at a price of $0.02 per unit, and is working on closing this financing shortly, subject to review by Canadian Securities Exchange (the “CSE”).
As previously announced, BLOK Tech was named as a respondent in temporary order dated November 26, 2018 (the "Temporary Order") issued by the Executive Director of the British Columbia Securities Commission (the “BCSC”) in connection with distributions to certain individuals connected to the BridgeMark Group. The respondents named in the Temporary Order (the "Respondents") were restricted from purchasing and distributing securities in reliance on the consultant exemption to distribute securities without a prospectus (the "Consultant Exemption"). The Executive Director of the BCSC sought an extension of the Temporary Order (the "Extension Request") pending the conclusion of the BCSC's investigation into the Respondents' reliance on the Consultant Exemption. On December 7, 2018, the BCSC held a hearing to consider the Extension Request and, on January 15, 2019, the BCSC issued a decision approving the Extension Request in the case of certain of the Respondents.
The BCSC's investigation is ongoing. BLOK Tech is continuing to cooperate with the BCSC in this matter.
As previously announced, BLOK Tech has closed off development of the Greenstream Network Platform until further notice. The Company will focus its available resources going forward on monetizing the technology either in the cannabis industry, other sectors or through integration with other technologies.
In addition, the Company intends to explore new emerging technology projects that have near-term commercial viability and to raise further capital for their development.
The Company intends to call an Annual General Meeting (the “AGM”) in the next ten (10) days with a yet to be determined date.
SIERRA is a developer of various software tools and apps utilizing proprietary blockchain methodologies. SIERRA has a license agreement with Intensity Mining Corp. to develop new products derived from Intensity’s proprietary “low-power” blockchain suite of tools.
In the course of pursuing mining of various coins including Bitcoin and Litecoin, Intensity developed a mining methodology using several proprietary modules which allowed rapid mining of coins utilizing PC’s running Windows™. Intensity remains focused on improving its mining software and believes the suite of tools have other applications in Fintech, Logistics Management, Inventory, and other areas commonly associated with blockchain development, resulting in the product development license with Sierra Blockchain.
The major advantage of low-power blockchain is that applications which ordinarily would be designed using a “cloud-based” architecture can now be designed conceptually around a node protocol wherein each authorized user becomes a node on the blockchain connected by a UDP-based node-to-node connectivity protocol. The licensed low-power blockchain also has a proprietary, multiplexed encryption architecture which is highly secure.
The low-power blockchain is powered by devices which are already in the hands of the end users, and the node protocol greatly reduces the security risk of existing and commonly used architectures which require users to access the blockchain through the cloud.
The conceptual advantages of a low-power blockchain in wide-scale, multi-user applications are many-fold and include:
In summary, the acquisition of SIERRA gives BLOK Tech access to a whole new suite of tools and proprietary techniques which are unique in the blockchain development space. BLOK Tech looks forward to further announcements to its shareholders and the investment community at large.
About BLOK Technologies Inc.
BLOK Technologies Inc. is a public company that invests in and develops companies in the blockchain and emerging technology sectors. The Company’s approach is to provide capital, technology and management expertise to the companies it develops. BLOK Tech’s current portfolio includes Greenstream, a technology platform designed to effectively manage value transfer, supply chain integrity and identity verification in complex and highly regulated industries. This scalable and adaptable platform is being developed on the Hyperledger technology stack and with the support of Oracle Cloud infrastructure. BLOK Tech continues to grow its business into adjacent industries and emerging technologies. The Company systematically identifies early-stage technologies with potential to disrupt and innovate within their industry and invests the necessary resources to ensure the success of their projects.
For additional information regarding BLOK Technologies and other corporate information, please visit the Company's website at BLOKTECHINC.COM
ON BEHALF OF THE BOARD OF DIRECTORS
Interim President & CEO, Director
For further information, please contact:
James Hyland, B.Comm.
Statements in this news release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the company can fulfill such forward-looking statements and the company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the company, some of which are beyond the company’s control.