Cryptanite Issues Statement About Promotional Activities Surrounding Its Common Stock
26 Jul 2018
Boulder, Colo., July 26, 2018 (GLOBE NEWSWIRE) — Cryptanite Blockchain Technologies Corp. (OTCQB: CRBTF), a Colorado-based blockchain technology company providing secure peer-to-peer payment systems, issued the following statement regarding promotional activities relating to the Company’s common stock in response to a request from OTC Markets Group Inc., which operates financial markets for 10,000 U.S. and global securities, including Cryptanite’s securities.
On July 24, 2018, OTC Markets informed Cryptanite of certain promotional activities concerning the Company and its common stock, including certain promotional newsletter emails encouraging investors to purchase the Company’s common stock. Until being so informed, the Company was unaware of both the promotional activity and its nature and content, the responsible parties and the extent of the dissemination of the newsletter email that was a part of the promotional activity.
The Company recognizes that this promotional activity coincided with higher than average trading volume in the Company’s stock price. However, the Company has no opinion as to whether or not and/or the extent to which the promotional activity affected trading activity because of the many factors that affect trading activity generally, which may include promotional activities as well as the volatile nature of the emerging industry in which the Company is involved and the prior issuance of public news releases. The Company had previously issued a release concerning new products and product enhancements on July 24, 2018.
The promotional materials about which OTC Markets inquired of the Company were prepared and disseminated by third parties unknown to the Company. The Company was not involved in the preparation or dissemination of the promotional materials, made no payments in relation thereto and has no agreements with the parties that prepared and disseminated them. The Company had no editorial control over the content of the promotional materials.
The Company and its officers have not, directly or indirectly, authorized or been involved in any way with the creation or distribution of the promotional materials referenced above, including the promotional newsletters referenced above. The Company has participated in the creation and has approved the dissemination of the fact-based information that was included in the public news release distributed on July 24. The promotional materials referenced in OTC Market’s inquiry included the content from this release. Neither the Company nor its officers reviewed or approved the editorial content that was a part of such promotional materials.
The Company has previously provided factual information and materials about the Company and its activities—all of which is publicly available on the Company’s website—to two third-party service providers as follows: For business development, public relations and media relations, the Company has engaged One22 Media, LLC. For public relations the Company has engaged MAPR.agency. The Company had no editorial control over content produced by One22 Media, and limited editorial control over content produced by MAPR.agency.
The facts presented in the previously-mentioned promotional materials are taken from the Company’s public news releases. The editorial content presented in the previously-mentioned promotional materials, which encouraged investors to purchase the common stock of the Company, expressed the view of the authors of the promotional materials and are subject to the disclaimers provided within the promotional materials regarding their paid advertising. The Company believes that the factual statements in the promotional materials, which were extracted from authorized corporate sources, are not-misleading and do not contain material misrepresentations. Statements made in the promotional materials that were beyond the factual materials provided by the Company, which statements constitute editorial content and opinion of its unknown authors, were added by the unknown authors to the aforementioned publicly available information regarding the Company without prior knowledge, approval or consent of the Company.
To the Company’s knowledge, after inquiry of its management, neither the Company, nor any of its officers, directors, controlling shareholders (shareholders owning 10% or more of the company’s securities) or any third party service providers (a) have been involved with the creation or distribution of the promotional materials provided to the Company by OTC Markets, nor (b) have sold or purchased the Company’s securities within the past 90 days.
The Company has not issued any equity securities or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance since its listing on the Canadian Securities Exchange (CSE) in March 2018.