Mr. Aurelio Useche reports
RELEVIUM ISSUES STATEMENT REGARDING RECENT PROMOTIONAL ACTIVITY
Relevium Technologies Inc. has been made aware of and requested by the OTC Markets Group Inc. to comment on recent promotional activity concerning its common shares traded on the OTCQB market.
On June 27, 2019, the OTC Markets Group sent the company copies of three newsletters sent on June 25 and June 26, 2019, by SmallCapFirm, a third party marketing and awareness firm utilized by StockWireNews LLC, which in turn was utilized by one of the company's marketing firms, Shore Thing Media LLC. The company was not aware of the newsletters until the OTC Markets Group sent the copies on June 27, 2019.
After inquiry of management, except with respect to the engagement of Shore Thing as further described below, none of the company's officers were involved, directly or indirectly, with the creation or distribution of promotional materials nor was the company asked to provide, nor did provide any editorial content.
After the company was contacted by OTC Markets Group regarding the promotional activity, the company contacted Shore Thing, and was informed by Shore Thing that Shore Thing engages third parties, such as StockWireNews, which in turn also engages third parties such as SmallCapFirm, for marketing, and pays such third parties at market rates for such promotional material.
The three newsletters discussed an overview of the company's business along with other referenced firms. The company does not believe the statements referencing it in the promotional materials were false or misleading. Other commentary in the newsletters appears to express the author's personal opinions.
The company believes the promotional activity may have been a factor with respect to an increased price and trading volume concerning the company's common shares that occurred following the promotional activity. However, the small increase in the share price during this period also corresponded with the announcement of the company's medical cannabis strategy and investor call during this period, which the company believes may also have been a factor with respect to such increased price and trading volume.
After inquiry of company management, none of the company's officers, directors or controlling shareholders nor third party service providers, have sold or purchased company securities in the past 90 days other than the company's chief executive officer, Aurelio Useche, purchasing 4,213,713 common shares from the company's former controlling shareholder, Albertus Engelbrecht, on May 21, 2019, in a private sale and an acquisition by the company's chairman of the board, Andre Godin, purchasing 375,000 common shares and 375,000 share purchase warrants on June 11, 2019, pursuant to the company's private placement.
The company has issued shares at a discount to the current market rate at the time of the issuance through private placements in accordance with the policies of the TSX Venture Exchange. The company recently closed a non-brokered private placement financing on June 11, 2019, for a total of 15.35 million units at eight cents per unit, each unit consisting of one common share and one common share purchase warrant to purchase a common share at 12 cents, for total gross proceeds of $1,228,000. In the past three years, the company has held closings on other private placements. The company has not at any point issued convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance.
In the last 12 months, the company has engaged Renmark Financial Communications to provide investor relations services, and Emerging Growth LLC, Empire Relations Holdings LLC, Equity Insight Inc., Follow the Money Investment Group, Mediant Communications, MI3 Communication, Investing News Network, Frontier Flex Marketing, Stock House Publishing Ltd., Stonebridge Partners, LLC and Shore Thing to provide marketing services. The engagement of Shore Thing was terminated as of June 28, 2019.
About Relevium Technologies Inc.
Relevium is a publicly traded company that operates in the health and wellness industry, including legal cannabis, with a primary focus on on-line distribution. The principal business of the company is the identification, evaluation, acquisition and operation of brands and businesses in the health and wellness markets and medical cannabis. The company pursues its business strategy through an acquisition and partnership model in a holistic approach to encompass a wide range of health and wellness consumer products. Relevium operates through two wholly owned subsidiaries:
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BGX E-Health LLC, based in Orlando, Fla., which markets dietary supplements, nutraceuticals, sports nutrition and cosmeceuticals primarily through its Bioganix brand portfolio in the United States and Europe;
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Biocannabix Health Corp., based in Montreal, Que., a biopharma nutraceutical company focused on delivering pediatric endo-medicinal nutraceuticals for cannabinoid therapy.
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