TAAL Distributed Information Technologies Inc. (CSE:TAAL | FWB:9SQ) (“TAAL” or the “Company“) announces that it will delay filing its annual audited financial statements and management discussion and analysis for the year ended December 31, 2019 until on or about June 12, 2020 (together, the “Annual Filings“). The Annual Filings would normally be required on or before April 29, 2020 pursuant to Sections 4.2 and 5.1(2) of National Instrument 51-102 – Continuous Disclosure Requirements. In postponing the filings, the Company is relying on the exemptions provided in BC Instrument 51-515 – Temporary Exemption from Certain Corporate Finance Requirements (the “BC Instrument“) adopted by the British Columbia Securities Commission (and similar exemptions provided by other Canadian securities regulators) extending the deadline for certain filings due to the challenges posed by the COVID-19 pandemic.
Until the Company has completed the Annual Filings, the Company’s management and other insiders are subject to a trading black-out policy that reflects the principles in Section 9 of National Policy 11-207 – Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions. As required by BC Instrument, the Company is also providing, by way of this press release, an update on material business developments since the filing of the Company’s most recent interim financial statements.
Conversion of Debt
The unsecured convertible debenture (the “Debenture“) issued to Calvin Ayre in connection with the share purchase agreement dated March 22, 2019 for the acquisition of Freschette Limited will reach its maturity on May 1, 2020. TAAL issued a notice to Mr. Ayre pursuant to the terms of the Debenture that TAAL will satisfy the Debenture through the issuance of 9,256,763 common shares of TAAL at a conversion price of C$3.00 in settlement of C$27,770,289, reflecting C$24,148,077.01 of principal plus 15% interest.
Suspension of Cloud Computing Operations in Kazakhstan
TAAL has advised its hosting providers that as of May 8, 2020 TAAL will cease all cloud computing operations in Kazakhstan for itself and its clients.
The pause in operations is part of a transformation, not only for TAAL but for the industry as a whole. The imminent halving highlights that public, permission-less blockchains must deliver significant transactional volume to offset the reduction in block reward subsidy with transaction fees. This was the original intent of Satoshi Nakamoto when he created this revolutionary and disruptive technology. Bitcoin SV now has the platform to realize this vision and TAAL, with the recently announced technology licenses from the nChain Group, is building the specialist services and infrastructure to support infinite scaling, enterprise-level investment and blockchain services. The future, and success, of blockchain technology depends, by design, on a healthy transaction fee economy and TAAL will be delivering many of the components necessary to make this a reality.
As TAAL evolves into a vertically integrated enterprise-grade, blockchain infrastructure solution provider, the Company will look to grow and acquire key businesses which we believe will survive the transition to the new transaction-based economic model for digital assets. One that supports limitless scalability, unbounded transactional volume, and profits earned by those that process the most transactions, not the ones with the most hash power.
SOURCE Taal Distributed Information Technologies Inc.