Mr. Chris Bradley reports
GOOD LIFE NETWORKS ANNOUNCES MANAGEMENT CHANGES INCLUDING NEW CEO, NEW CFO AND OUTLINES NEW DIRECTION FOR THE COMPANY
Good Life Networks Inc. is advising its shareholders that there has been a significant negative shift within the advertising technology industry, which has a material and significant impact on the current operations of Good Life and its two recently acquired companies. As a result, the company expects the second quarter and fiscal 2019 financial performance of Good Life to be significantly below its previous expectations.
In response to this shift, Good Life is proposing a repositioning of its business and has created a corporate deck outlining the details of the repositioning strategy, which includes a description of Good Life's proposed new business model. The repositioning strategy proposes utilizing the technology Good Life has developed to power customer acquisition for several consumer products and services, including cannabidiol (CBD) products, e-sports fantasy and other on-line gambling services. This pivot in the company's business will require minimal working capital and a scaled-down team and will use Good Life's existing technology to gain a competitive advantage.
Good Life's existing technology has been developed over several years and has been refined to allow robust and high-volume customer identification and routing for marketing purposes. While the current market has changed, the usage and effectiveness of the company's technology have not. Redeploying the company's technology in these new markets will give the company a significant customer acquisition advantage.
The repositioning strategy allows Good Life to achieve its objective of being profitable at the earliest opportunity. The company encourage all shareholders to review the 2019 deck at their earliest convenience. All other internal projects, including AR blockchain solution and the mPlore acquisition, have been put on indefinite hold.
Changes in management
Good Life announces the following management changes. Chris Bradley has been promoted to the role of the company's new chief executive officer. Mr. Bradley, who currently serves as Good Life's vice-president of technology, will succeed Jesse Dylan, the company's founder and current CEO. Mr. Dylan has been appointed as the company's chairman. Cliff Dumas has retired as the company's chief communication officer and vice-president of operations, and Andrew Osis has resigned as the company's chief financial officer (CFO) to assume a strategic adviser role in Good Life's repositioning strategy described herein. Lastly, Andrew Gibson has been appointed as the chief operating officer, and Mathew Lee has been appointed as the CFO, effective Aug. 30, 2019.
The incoming CEO has made several immediate changes to management and employee compensation, starting with a 50-per-cent reduction in CEO salary and a 30-per-cent reduction in COO salary. All of Good Life's Canadian team members have accepted a salary reduction of approximately 30 per cent. Management leaving the company has agreed to waive any and all severance payments.
Discussions will now begin with key stakeholders, starting with secured creditors, ahead of any likely breach of covenants. Good Life is also in discussion with potential financial resources to assist in the financing of the pivot outlined herein as recapitalization will be required to fully execute the pivot plan.
About Mr. Bradley
Mr. Bradley is an experienced CTO with a decade in ad tech technology design and architecture. His information technology career started with architecting IT systems for the United Kingdom's first Internet bank. After becoming an ad tech entrepreneur, he built and ran several businesses leading to a sale of his greeting card business to Hallmark Cards PLC. He has built platforms for some of the icons of the Internet, systems that scale and generate tens of millions of dollars in revenues.
About Mr. Lee
Mr. Lee has over 10 years of experience in audit, finance, public company financial reporting and operations management. He began his career as a CPA and CA with Smythe LLP, performed financial statement audits, and handled taxation matters for both publicly traded and privately held entities from January, 2007, to December, 2014. From December, 2014, to November, 2016, Mr. Lee was manager of operations for Raymond James Ltd., one of Canada's largest independent investment dealers with revenues in excess of $300-million and assets under administration in excess of $33-billion. From November, 2016, to November, 2017, Mr. Lee served as corporate controller for AP Capital, a real estate investment company with assets under management of $150-million. Since November, 2017, Mr. Lee has served as chief financial officer for multiple TSX Venture Exchange- and Canadian Securities Exchange-listed companies with a focus on cannabis, mining and technology. Mr. Lee has expertise in the areas of financial reporting, budgeting, forecasting, cash management and process improvement. Mr. Lee holds a chartered professional accountant designation with a bachelor of commerce degree from the University of British Columbia.
About Mr. Gibson
Mr. Gibson is a 14-year ad tech veteran with expertise in office management and collections, controlling and managing multimillion-dollar accounts. He is a lifelong successful entrepreneur, having built and sold businesses, including exiting from a large security destruction business to publicly listed PHS PLC. His strategic leadership skills have resulted in high revenue growth and profitability for the organizations that he has driven forward.
Second quarter 2019 financials
Good Life would also like to advise that the second quarter 2019 financial statements and management's discussion and analysis filings will be delayed beyond the end of Aug. 31, 2019. A further update will be issued once a date of release is confirmed.
Litigation settlement and update
Good Life also announces that it has fully settled its outstanding lawsuit with Lernalabs Ltd. and Lerna LLC by agreeing to paying Lerna the sum of $650,000 (U.S.) in full and final settlement, to be paid by way of a future dated payment plan. The lawsuit with McMillan LLP remains outstanding.
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