Mr. Jesse Dylan reports
GOOD LIFE NETWORKS ANNOUNCES UPDATE ON RECENT COMPANY ACTIVITY AS WELL AS BOARD AND MANAGEMENT CHANGES
Good Life Networks Inc. has provided a corporate update.
The company became aware in August that certain of its key creditors would be unable to pay their outstanding accounts with the company, which, along with a significant reduction in the day-to-day business, drastically impacted the company's ability to operate.
Upon further investigation, the company identified that recent actions by giant technology companies had significantly impacted the sector the company operates in. Their strategy has been to consolidate advertising into a small number of companies and then use that leverage to switch the traditional balance of power from publishers to the advertisers. The speed and effectiveness in which this shift has taken place shocked the industry and in turn has massively impacted the company's ability to generate revenue. Secondly, the company's business partners are now struggling to maintain operations and clients are at risk of bankruptcy, going out of business and are unable to pay their bills.
Industry watchdogs have begun to take action and Good Life intends to work with the Canada competition watchdog who are investigating on-line "anticompetitive strategies. Such strategies could include refusing to deal with competitors, [and] prohibiting suppliers from providing rivals with better prices or terms." The deadline for submission is Nov. 30, 2019.
The company also supports and intends to offer assistance in the recently announced antitrust investigation into the giant tech companies who it believes used their scale and influence to bypass the advertising exchange layer of the ad-tech ecosystem.
Good Life is continuing to work on the preparation of its second quarter 2019 financial statements. The delay in the filing of these documents is due to substantial reworking of the statements following the material impairment in the business conditions as described in this release. The reworking of the second quarter financial statements was required once Good Life became aware of the significant degradation in business performance and its likely impact on the company's assets and collectability of the company's accounts receivable.
This shift in the industry landscape has resulted in a major negative impact on the ad-tech sector. In response to this shift, the company is proposing a repositioning of its business. The repositioning strategy proposes utilizing the technology the company has developed to power customer acquisition for several consumer products and services, including cannabidiol products, e-sports fantasy and other on-line gambling services. Redeploying the company's technology in these new markets will give Good Life a significant customer acquisition advantage and allows the company to effectively become its own publisher thereby reducing its risk and exposure to a similar catastrophic impact on its business.
The company wishes to thank Stephanie Ratza and Praveen Varshney for their service to the company and announce their resignations from the board of directors. The company will seek to replace their board positions with persons directly able to assist the company's restructuring and redirection of its technology into other markets such as CBD, gaming and e-sports. Due to other commitments and time constraints, Mathew Lee has resigned as chief finance officer and is replaced by interim CFO Ying Xu.
We seek Safe Harbor.
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