Two Owls to ac­quire Min­erva In­tel­li­gence as QT

Stockwatch Daily - - FRONT PAGE - Mr. David Pat­ter­son re­ports

TWO OWLS Ven­tures Corp. and Min­erva In­tel­li­gence Inc. have en­tered a bind­ing let­ter agree­ment dated Nov. 6, 2018, pur­suant to which Two Owls will ac­quire all of the is­sued and out­stand­ing shares in the cap­i­tal of Min­erva pur­suant to a re­verse takeover trans­ac­tion. The trans­ac­tion will con­sti­tute Two Owls’ qual­i­fy­ing trans­ac­tion. Min­erva In­tel­li­gence Inc. Min­erva is a pri­vate On­tario cor­po­ra­tion based in Van­cou­ver, B.C., Canada. Min­erva was in­cor­po­rated on May 17, 2017; and its sole busi­ness has been to de­velop and mar­ket ar­ti­fi­cial in­tel­li­gent (AI) soft­ware prod­ucts.

Min­erva’s soft­ware , the MMITM sys­tem, has been de­vel­oped to func­tion in mul­ti­ple di­verse prob­lem do­mains. In each do­main in which it is de­ployed, a key el­e­ment of its ef­fec­tive op­er­a­tion is the do­main knowl­edge base and mod­els de­ployed along­side the avail­able vo­lu­mi­nous and oth­er­wise un­wieldy data to which such knowl­edge base and mod­els are ap­plied. For this rea­son, Min­erva gives its sys­tems dif­fer­ent names for the dif­fer­ent do­mains within which it is de­ployed. Min­erva’s prin­ci­pal ex­ist­ing prod­ucts are:

• MineMatch — iden­ti­fies min­eral ex­plo­ration tar­gets in ex­plo­ration data sets that are too vast and com­plex for hu­mans to ef­fec­tively eval­u­ate;

• HazardMatch — iden­ti­fies and eval­u­ates land­slide haz­ards; man­age­ment be­lieves that this prod­uct has po­ten­tial ap­pli­ca­tions in ad­di­tional ar­eas hav­ing sim­i­lar re­quire­ments; • MetMatch — iden­ti­fies and ma­nip­u­lates data in a met­al­lur­gi­cal con­text. Min­erva is cur­rently fo­cused on ap­ply­ing its MineMatch sys­tem (part of the MMI sys­tem) as a soft­ware ser­vice for en­hanc­ing the suc­cess rate of min­eral ex­plo­ration. The prin­ci­pal mar­ket for Min­erva’s MineMatch sys­tem lies with min­eral ex­plo­ration com­pa­nies and in­sti­tu­tions, both gov­ern­men­tal and non-gov­ern­men­tal, that pro­mote min­eral ex­plo­ration, such as ge­o­log­i­cal sur­veys and the World Bank. Qual­i­fy­ing trans­ac­tion terms

The trans­ac­tion will be ef­fected by way of a plan of ar­range­ment, whereby: (i) Two Owls will in­cor­po­rate a new On­tario sub­sidiary (Subco); (ii) Two Owls, Subco and Min­erva will ef­fect a three-cor­nered amal­ga­ma­tion whereby Min­erva and Subco will amal­ga­mate and the share­hold­ers of Min­erva will re­ceive shares of Two Owls; and (iii) Min­erva will be­come a wholly owned sub­sidiary of Two Owls.

Sub­ject to com­pli­ance with ex­change poli­cies, Two Owls will first com­plete a con­sol­i­da­tion of its com­mon shares at a ra­tio of two ex­ist­ing com­mon shares for one post­con­sol­i­da­tion com­mon share im­me­di­ately prior to and as a con­di­tion of the clos­ing of the trans­ac­tion. The num­ber of com­mon shares is­suable on ex­er­cise of out­stand­ing Two Owls op­tions will be ad­justed ac­cord­ingly

based on the con­sol­i­da­tion ra­tio.

Two Owls will ac­quire from the share­hold­ers of Min­erva all of the is­sued and out­stand­ing com­mon shares of Min­erva, and, in con­sid­er­a­tion there­for, Two Owls will is­sue to each share­holder of Min­erva five post­con­sol­i­da­tion com­mon share in the cap­i­tal of Two Owls in ex­change for each Min­erva com­mon share held by such share­holder. In ad­di­tion, Two Owls will is­sue op­tions in re­place­ment of op­tions out­stand­ing in the cap­i­tal of Min­erva. In con­junc­tion with clos­ing of the trans­ac­tion, the com­pany will change its name to Min­erva In­tel­li­gence Inc. or a sim­i­lar name to re­flect its new busi­ness. Cap­i­tal struc­ture

On clos­ing, Two Owls will is­sue 38,575,005 post­con­sol­i­dated shares and 1.95 mil­lion op­tions (ex­er­cis­able at 25.34 cents per share); such that there will be an ag­gre­gate of 41,675,005 shares and 2.46 mil­lion op­tions out­stand­ing in the cap­i­tal of the com­pany. In ad­di­tion and in ac­cor­dance with the poli­cies of the ex­change, the com­pany in­tends to pay find­ers’ fees in con­nec­tion with the trans­ac­tion through the is­suance of one mil­lion post­con­sol­i­da­tion shares of the com­pany. Fi­nanc­ing

Min­erva re­cently com­pleted two pri­vate place­ments of: (i) 2,765,000 shares at $1 (U.S.) per share for gross pro­ceeds of $2,765,000 (U.S.); and (ii) 1.45 mil­lion shares at $2.50 (U.S.) per share for gross pro­ceeds of $3,625,000 (U.S.). It is not an­tic­i­pated there will be a con­cur­rent fi­nanc­ing un­der­taken in con­junc­tion with the trans­ac­tion. No funds have been or will be ad­vanced by Two Owls to Min­erva prior to clos­ing of the trans­ac­tion. Man­age­ment

Upon com­ple­tion of the trans­ac­tion, the di­rec­tors and of­fi­cers of the re­sult­ing is­suer will be as fol­lows:

• Clin­ton Smyth — chief ex­ec­u­tive of­fi­cer and di­rec­tor;

• Prof. David Poole — chief soft­ware ar­chi­tect and di­rec­tor;

• Charles Jenk­ins — chief fi­nan­cial of­fi­cer;

• Guy El­liott — di­rec­tor;

• Tom Griffis — di­rec­tor. The pro­posed trans­ac­tion is not a non-arm’s-length qual­i­fy­ing trans­ac­tion; and, con­se­quently, the trans­ac­tion will not be sub­ject to ap­proval by the com­pany’s share­hold­ers.

We seek Safe Har­bor.

Erika Flores con­densed this news re­lease (erikaf@stock­

Guy El­liott, David Michael Pat­ter­son, Colin David Watt

(OWL) Shares: 6,200,000 (Shells)

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