TORONTO, March 21, 2019 (GLOBE NEWSWIRE) — FTI Foodtech International Inc. (TSXV: FTI) (“the Company”) announces it has signed an MOU with Stemtech (“Stemtech”) to develop a blockchain application for the Multi-Level Marketing (MLM) industry.
- The proposed structure of the deal would be as follows:
FTI to issue 2,733,773 shares (20% of current outstanding shares of FTI) to Stemtech in exchange for 1,060,000 shares of Stemtech (20% of outstanding).
- Direct Investment – Stemtech and its investors shall participate in a private placement with FTI for a total of CAD $500,000 at $0.25 per share, with an equal amount of warrants at CAD $0.45 per share with a one year expiry. FTI has the option to invest some of the proceeds of the warrants exercise at Stemtech’s next round at 20% DTM (discount to market). It is contemplated that this will be laid out in two tranches of approximately CAD $250,000 each, approximately ten weeks apart.
- FTI shall purchase 350,000 Stemtech shares at USD $1.00 per share, for a total investment of USD $350,000. It is contemplated that this will be laid out in two tranches of approximately USD $175,000 each, approximately ten weeks apart.
- FTI shall issue up to an additional 2,000,000 shares and warrants to Stemtech on a performance basis based on net profit. The structure is to be determined with the final agreement.
- Stemtech shall initially nominate one qualified Board Member of its choosing to the Board of FTI. After the second $175,000 tranche, Stemtech shall nominate a second qualified Board Member.
The final agreement is subject to approval from the TSX Venture Exchange.
Stemtech is a Delaware based MLM company, focused on health and wellness products.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, contact: William Hullah, President, FTI at (416) 444-1058.