VANCOUVER, March 31, 2020 /CNW/ - TAAL Distributed Information Technologies Inc. (CSE:TAAL | FWB:9SQ | OTCQB:SQRMF) ("TAAL" or the "Company") discloses that certain sellers of the cloud computing assets recently purchased by TAAL are involved in a dispute with the hosting provider (the "Hosting Provider") where such assets were previously operational.
Further to the Company's press release of March 9, 2020, TAAL closed the asset purchase agreement (the "Agreement") with Tansley Equipment Limited ("Tansley"), Fractical Sense Limited and Laser Lollypop Limited, three companies affiliated with Mr. Calvin Ayre (the "Principal"), to acquire over 50,000 non-operational cloud computing units (the "Cloud Computing Assets"). As consideration of TAAL acquiring title to the Cloud Computing Assets pursuant to the Agreement, 2,279,215 non-voting participating shares of TAAL (the "Issued Shares") were issued to the Principal. The Issued Shares are currently held by TAAL and pledged as security for the release of the Cloud Computing Assets to TAAL free and clear of liens on or before September 4, 2020. If all of the Cloud Computing Assets are not released to TAAL, a proportionate number of the Issued Shares will be cancelled by TAAL and returned to treasury.
The Hosting Provider has claimed amounts owing from Tansley and another entity in relation to the termination of hosting contracts between the applicable parties and, as a result, has refused to release certain equipment in its possession, including the remaining Cloud Computing Assets for shipment. For clarity, some equipment has already been released to TAAL for shipment. Management expects the applicable parties will look to resolve this matter through arbitration.
Pursuant to a services agreement with Bigfoot Holdings Group Limited dated November 8, 2019, a subsidiary of TAAL provides management and operational services to certain corporations affiliated with the Principal, including Tansley, for a monthly fee. In such capacity, TAAL's subsidiary advises and acts on behalf of Tansley but is not directly involved in the dispute.
TAAL does not expect the dispute or delay in shipment to affect its business plans, as there are alternative sources of equipment available to the Company and the Cloud Computing Assets were not expected to be upgraded and deployed until later in the year.
TAAL is currently focused on the design of its next generation blockchain transaction processing strategy and vision on the Bitcoin SV public blockchain and this process is not impacted by this dispute and associated delay. Transaction processing and enterprise scaling are critical features for growth and success in blockchain computing industry and TAAL is positioning itself as a leader in this arena.
Jerry Chan, CEO
About TAAL Distributed Information Technologies Inc.
TAAL is a Canadian based technology company leading in enterprise scale blockchain based information management and security through Bitcoin SV and other SHA-256 based digital asset platforms.
The CSE accepts no responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes "forward-looking information" as defined under applicable Canadian securities legislation. Forward‐looking information and statements include, but are not limited to, disclosure regarding possible events, that are based on assumptions about future economic conditions and courses of action, statements with respect to the anticipated benefits, if any, effects, performance, capabilities or importance to TAAL or otherwise (including with respect to the blockchain industry), statements with respect to the availability of equipment, statements with respect to timing and upgrade of equipment, operations, workforce and financial condition, statements with respect to the timing and completion of the Company's strategy, statements with respect to the blockchain industry generally, statements with respect to the pledge agreement (including completion on the same terms as negotiated or otherwise), the timing of the release of the Cloud Computing Assets free and clear of liens, if at all, the resolution of the dispute between the Hosting Provider and the applicable parties to the dispute (including the timing and process therefor), cancellation of a proportionate number of Issued Shares by TAAL in the event that not all of the Cloud Computing Assets are released to TAAL, if at all, and statements with respect to TAAL or its subsidiaries's involvement in the dispute with the Hosting Provider, and, in certain cases, can be identified by the use of words such as "expects", or variations of such words and phrases or statements that certain actions, events or results "may" or "will", or the negative forms of any of these words and other similar expressions.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, future demand for Bitcoin SV and other digital assets and risks related to information processing using those platforms, integration issues, personnel and staffing requirements, technological change and obsolescence, risks relating to the availability of equipment and the timing of upgrading and deploying such equipment and risk that the Cloud Computing Assets will not be released in a timely manner. Actual results and future events and actions could differ materially from those anticipated in such forward looking information. Accordingly, readers should not place undue reliance on forward looking information. All forward looking information in this news release is made as of the date hereof and qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. TAAL disclaims any intention or obligation to update or revise such forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE TAAL Distributed Information Technologies Inc.
For further information: Matt Whitcomb, Investor Relations, Telephone: +1 800-371-2809