Tenet Also Announces Second Tranche of the Private Placement of up to CAD$3M
Toronto, Ontario--(Newsfile Corp. - June 15, 2023) - Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) ("Tenet" or the "Company"), a fintech technology and data services provider and operator of the Cubeler® Business Hub, announces today that it commenced a review of technology earlier this month to assess "fit for purpose" technology for deployment and revenue generation for the Company.
Given the Company's current state of technology readiness, funding, skill sets and revenue opportunities, the independent members of the board of directors of Tenet approved a 90-day plan to launch a Benchmarking product geared at small and medium-sized businesses to help them understand their strengths, weaknesses and where to optimize their business needs compared to other SMEs in general, and in their specific business niches.
The decision to focus on the data and servicing the SMEs with benchmarking products to leverage the Company's existing capabilities was made as a viable product offering with the nearest path to revenue for build out cost and most promising for demand amongst SMEs which are underserviced in the area of peer benchmarking.
The Company expects to share plans on the SME Benchmarking platform at its upcoming Annual General Meeting (AGM). Tenet's Management also encourages the Company's shareholders to vote for Management's nominees for election to Tenet's board of directors. In addition, Tenet reminds the Company's shareholders that the deadline to vote is prior to 10:00 am ET on Friday, June 23rd, 2023.
For any questions or more information with respect to the AGM, which will be held on Tuesday, June 27, 2023 at 10:00 am ET, please contact TMX Investor Solutions at 1-800-549-6746 toll free in North America or 1-201-806-7301 outside of Canada and the United States, or by email at INFO_TMXIS@TMX.com.
Additionally, the Company announced today that it intends to complete the second tranche of the non-brokered private placement financing of units of the Company ("Unit") for proceeds of up to $3,000,000 (the "Offering"), conducted in tranches over a period of six months. The Second Tranche Offering will be $500,000.06 and will be comprised of 4,291,846 Units.
Each Unit sold in the Second Tranche Offering (referenced below) is comprised of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant") to purchase one Common Share at a price of $0.155 per share any time prior to two years following the closing of the Second Tranche Offering, subject to certain terms and conditions.
The Second tranche offering (the "Second Tranche Offering") of 4,291,846 Units is offered at a price of $0.1165 per Unit (the "Second Tranche Offering Price"), for gross proceeds of $500,000.06. The Second Tranche Offering will take place by way of a private placement to a Cayman Segregated Portfolio Company, Open-Ended Fund, (the "Investor") managed by an investment firm headquartered in Hong Kong. It is the intention of the parties that the offering of the Units will be made in reliance on the exemptions available in OSC Rule 72-503 Distributions Outside Canada. The Company expects to close the Second Tranche Offering on June 22, 2023. Subsequent tranches of Units in the Offering will be priced at the time of each such tranche, within the pricing policies of the Canadian Securities Exchange ("CSE").
The Company intends to use the net proceeds from the Private Placement for working capital requirements and for other general corporate purposes, including safeguarding the Company's financial position in the short-term and allowing the Company to meet its payroll obligations.
Certain statements included in this presentation constitute "forward-looking statements" under Canadian securities law, including statements based on management's assessment and assumptions and publicly available information with respect to the Company. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as "believes," "expects," "anticipates," "assumes," "outlook," "plans," "targets", or other similar words. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements in this news release include, but are not limited to, holding company with significant operations in China; general economic and business conditions, including factors impacting the Company's business in China such as pandemics (ex.: COVID-19); legislative and/or regulatory developments; Global Financial conditions, repatriation of profits or transfer of funds from China to Canada, operations in foreign jurisdictions and possible exposure to corruption, bribery or civil unrest; actions by regulators; uncertainties of investigations, proceedings or other types of claims and litigation; timing and completion of capital programs; liquidity and capital resources, negative operating cash flow and additional funding, dilution from further financing; financial performance and timing of capital; and other risks detailed from time to time in reports filed by the Company with securities regulators in Canada, the United States or other jurisdictions. We refer potential investors to the "Risks and Uncertainties" section of the Company's MD&A. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on forward-looking information.
Forward-looking statements reflect information as of the date on which they are made. The Company assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
All amounts are in Canadian dollars unless otherwise indicated.
About Tenet Fintech Group Inc.:
Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) companies. All references to Tenet in this news release, unless explicitly specified, includes Tenet and all its subsidiaries. Tenet's subsidiaries provide various analytics and AI-based services to businesses and financial institutions through the Business Hub, a global ecosystem where analytics and data are used to create opportunities and facilitate B2B transactions among its members. Please visit our website at: http://www.tenetfintech.com.
For more information, please contact:
Tenet Fintech Group Inc.
Christina Boyd, Director, Investor Relations