Mr. Tim Fernback reports
SURGE EXPLORATION PROVIDES UPDATE
Surge Exploration Inc. is making the following statements regarding recent market activity concerning its common shares traded on the OTCQB marketplace. The company was informed by the OTC that promotional activity coincided with higher-than-average trading volume.
The company became aware of certain promotional activity on Aug. 16, 2019, based on its engagement with a marketing firm, Awareness Consulting Network LLC. The promotional material presents an overview on the company's business, which includes updates of its exploration projects located in Canada. While the material contains some speculative statements about investment potential, the company does not believe it contains any materially false or misleading statements about the company.
The company engaged Awareness for the purposes of newswriting and marketing services, and directly paid Awareness for the creation and distribution of the materials prepared by Awareness. The company reviewed the content of the materials for factual inaccuracies regarding the company business, and that the content of the materials contain accurate statements based strictly on its previously disseminated press releases made available to the public or public information regarding its projects as posted on the company's website.
The company's recent press releases have reported on and provided disclosure of legitimate and continuing corporate activities only, and are not part of any promotional activities. The company's operations are in the exploration stage. As an exploration-stage enterprise, the company has a focus on developing its property interests to establish a commercially viable resource. This is where the company's attention and funds will remain. The company encourages those interested in the company to rely solely on information included in its press releases combined with its SEDAR filings and disclosures made with the OTC Markets Group. In addition, the company strongly urges any prospective investors to obtain advice from a qualified investment professional prior to making any investment in the company.
The company made direct inquiries of its officers, directors and shareholders owning 10 per cent or more of the company's securities, and it can confirm that no shares were purchased or sold within the past 90 days.
Since 2018, the company has entered into an editorial write-up and marketing campaign contracts with Stellar Media and Aktien Check.
Pursuant to private placements and shares-for-debt transactions completed through the facilities of the TSX Venture Exchange, the company has issued the following shares and warrants. The shares were issued at a discount to market pursuant to private placement pricing policies of the TSX Venture Exchange, and all securities issued were restricted and subject to statutory hold periods. The warrant exercise prices were at market price at the time of grant and, as such, were not discounted:
Dec. 22, 2017: 43.75 million postconsolidated shares at four cents per 43.75 million postconsolidated warrants exercisable at four cents expiring on Dec. 22, 2019; to date, there are 39,156,000 warrants outstanding;
Feb. 14, 2018: 4,379,176 postconsolidated shares at four cents and 2,413,914 postconsolidated warrants exercisable at four cents expiring on Feb. 20, 2020; to date, there are 2,413,914 postconsolidated warrants outstanding;
July 22, 2018: 5.5 million shares at 10 cents per share and 5.5 million warrants exercisable at 15 cents expiring on July 22, 2020; to date, there are 5.5 million warrants outstanding.
About Surge Exploration Inc.
The company is a Canadian-based mineral exploration company, which has been active in the resource sector in British Columbia and elsewhere in Canada.
We seek Safe Harbor.
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