Sets record straight following baseless statements from dissident shareholder, 1205216 BC Ltd.
TORONTO, June 6, 2019 /PRNewswire/ - Eyecarrot Innovations Corp (Eyecarrot) (TSX-V: EYC |OTCQB: EYCCF) today affirmed its commitment to executing on a comprehensive plan to advance the business, drive profitable growth, and create shareholder value. As previously disclosed, this plan includes:
- The continuation of its mission to help drive human vision performance for the 1 in 4 individuals who suffer from binocular vision problems
- The ongoing development and growth within the Vision Rehabilitation Market through Binovi Pro and Binovi Coach Software Service Platforms
- The expansion of Premium Educational Content through the Binovi Academy in order to drive hardware and software adoption, ensuring world class education to all providers
- The expansion of our Binovi Touch Hardware in to the Sports Performance Market through strategic partnerships and by driving revenue at high profile tradeshows
- The extension of Binovi Hardware to bring enhanced features, data and insights to our valued customers who trust our products with their businesses
Additionally, Eyecarrot rejects allegations made in the press release dated May 28, 2019 from "an anonymous representative of 1205216 BC Ltd." and invites shareholders to take a closer look at the motivations of this supposed dissident shareholder.
Adam Cegielski, Eyecarrot's CEO, said, "Eyecarrot's management team is squarely focused on the execution of our business plan and delivering on the promise of our technology. We are encouraged by the progress we are making and look forward to speaking with shareholders at our upcoming annual general meeting. It is unfortunate that one of our shareholders, numbered company 1205216 BC Ltd., is attempting to disrupt this important work with baseless and self-serving allegations. We want to set the record straight and return our attention to what matters most – delivering value for ALL our shareholders and moving this company forward."
Additional Information Re: Dissident Shareholder - 1205216 BC Ltd.
The dissident shareholder that made the May 28, 2019 release, 1205216 BC Ltd. ("Numbered Company 120"), was only incorporated on April 15, 2019. Its sole director is a West Vancouver resident named Justin Liu. Numbered Company 120 acquired seven million Eyecarrot shares between April 16, 2019 and April 23, 2019 before selling 2,000,000 shares on May 24, 2019. Numbered Company 120 appears to have been incorporated for the sole purpose of allowing Justin Liu to issue press releases attacking Eyecarrot anonymously.
Mr. Liu is a central respondent in proceedings before the British Columbia Securities Commission (BCSC) regarding BridgeMark Financial. On May 29, 2019, the BCSC extended a temporary order to May 27, 2020, banning Mr. Liu and others from trading in the securities of several subject companies or relying on certain prospectus exemptions in respect of companies traded on the Canadian Securities Exchange while the BCSC completes an investigation. That investigation is ongoing, with more than 100 production orders issued to date.
The Executive Director of the BCSC1 alleges that Mr. Liu, along with Lukor Capital, a company under his control, and others entered into agreements to provide consulting services to certain issuers. They paid for and were issued free-trading securities of those issuers through private placements. However, the BCSC is concerned that BridgeMark Group's members "provided little or no consulting services to the issuing companies and engaged in the scheme for their own profit." The issuers paid most of the funds they raised through these private placements back to Mr. Liu and the other individual respondents, and then sold issuer shares in the market at prices below the private placement acquisition cost. The BCSC described the conduct as "abusive to the capital markets".
Mr. Liu is also a respondent in proceedings before the Alberta Securities Commission involving Prize Mining and allegations substantially similar to those involving BridgeMark. Mr. Liu is subject to a temporary cease trade order in respect of Prize Mining.
In November 2018, Justin Liu participated in an Eyecarrot private placement, acquiring a substantial number of Eyecarrot shares. He then approached Eyecarrot and requested to be repaid the funds advanced to acquire his private placement shares through a consulting agreement, even though he had not performed consulting services for Eyecarrot. That proposal was rejected as having no commercial purpose and threatening to damage Eyecarrot and its shareholders.
Justin Liu was the signatory of Numbered Company 120's attempt to requisition a shareholder meeting, which Eyecarrot rejected as being legally invalid.
Allegations from Dissident Shareholder are Baseless
Contrary to the allegations made in the May 28, 2019 press release, Eyecarrot CEO Adam Cegielski has not benefitted from payments from Eyecarrot in excess of his salary, which is received and disclosed as a management fee. Sums received by Mr. Cegielski in addition to his management fee were reimbursements by Eyecarrot to Mr. Cegielski for necessary expenses properly incurred on behalf of Eyecarrot and were disclosed in Eyecarrot's financial statements in the applicable category for each.
Eyecarrot believes that Numbered Company 120's current attack on Eyecarrot stems from an earlier effort by Mr. Liu to establish the same arrangement with Eyecarrot that he is alleged to have benefitted from in the BridgeMark and Prize Mining proceedings noted above. Eyecarrot is actively working with the BCSC and the Canadian Securities Administrators, and relevant law enforcement, related to matters involving Numbered Company 120 and Mr. Liu and Eyecarrot.
About Eyecarrot Innovations Corp
Eyecarrot's BinoviTM platform is an innovative healthcare technology solution that integrates software, hardware, data and expert knowledge. Binovi helps Optometrists treat vision issues with in-office therapy as well as doctor-led home-based activities to better serve and increase the patient's experience and their therapy needs. The goal is to help transform vision performance for the 1 in 4 people worldwide that suffer from vision-related issues going beyond visual acuity. The company is transforming how vision healthcare services are integrated, while addressing key challenges in the health system.
On behalf of the Board of Directors
President | CEO
Forward looking information:
Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events and that the Company obtains regulatory approval. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, and delays in regulatory approval, as well as the other risks and uncertainties applicable to the Company as set forth in the Company's continuous disclosure filings filed under the Company's profile at www.sedar.com . The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Eyecarrot Innovations Corp.