FogChain Announces Letter of Intent to Merge with Canadian Teleradiology Services Inc.

VANCOUVER, BC and SAN CARLOS, CA / November 6, 2019 / (OTCQB: FOGCF; CSE: FOG; FRA: MUU3)

FogChain Corp. (“FogChain” or the “Company”) is pleased to announced that it has entered into a letter of intent (“LOI”) dated November 5, 2019 with Canadian Teleradiology Services, Inc. (“CTS”) pursuant to which Fogchain will acquire all of the outstanding shares of CTS pursuant to a share exchange agreement which will constitute a reverse takeover of the Company by Canadian Teleradiology Services Inc. (the “Transaction”) within the meaning of the policies of the Canadian Securities Exchange Inc. (the “CSE”). The resulting issuer (the “Resulting Issuer”) upon completion of the Transaction will change its name to some other name as acceptable to the parties and will operate the current business of Canadian Teleradiology Services Inc.

 “We are a healthcare company committed to finding new sectors within our industry that help to fill a need for patients and provide opportunity for company growth,” Said Mitchell Geisler, CEO of CTS. “By going public in the Canadian market, we hope to rapidly expand CTS services and begin to acquire additional new healthcare businesses that are developing new technologies to provide faster and high-quality services for patients.”

“This transaction will allow the current FogChain shareholders an opportunity to share in CTS’s success and future growth. We will begin to immediately enhance and develop CTS’s medical technology using our suite of testing and monitoring products.” Said James Cerna, CEO of FogChain Inc.

Transaction

Pursuant to the Transaction, all of the issued and outstanding common shares in the capital of CTS (the “CTS Shares”) will be exchanged for common shares in the capital of the Company which will result in CTS becoming a wholly owned subsidiary of the Company. Under the terms of the LOI, upon completion of the Transaction, the current shareholders of the Company will retain approximately 23% of the issued and outstanding share capital of the Resulting Issuer on a fully diluted basis, inclusive of any securities which may be issued pursuant to any financing which CTS may pursue concurrent with the Transaction.

The final structure of the Transaction will be determined by the parties following the receipt of tax, corporate and securities law advice. The Transaction is an arm’s length transaction and pursuant to the terms of the LOI it is anticipated that the definitive agreement (the “Definitive Agreement”) in respect of the Transaction will be signed on or before December 10, 2019.

Completion of the Transaction is subject to a number of conditions, including but not limited to the following key conditions:

– execution of the Definitive Agreement;

– completion of mutually satisfactory due diligence; and

– receipt of all required regulatory, corporate and third-party approvals, including the approval of the CSE and the shareholders of the Company and CTS (if required) and the fulfillment of all applicable regulatory requirements and conditions necessary to complete the Transaction.

New Board and Management

Effective on the closing of the Transaction it is anticipated that the current members of the board of directors of the Company (the “Board”) and the current management of the Company will resign. With respect of the Board, the current members will upon completion of the Transaction be replaced by nominees to the Board appointed by CTS (the “Nominees”) and the existing management team of CTS will replace the current management of the Company

Shareholder Approval

Prior to the completion of the Transaction, the Company will call an annual and special meeting of its shareholders for the purpose of approving, among other matters (i) the election of the Nominees to the Board; and (ii) the change of name of the Company.

Trading Halt

Trading in the common shares of the Company will be halted on November 5, 2019 at the opening and it is expected to remain halted until the closing of the Transaction.

Canadian Teleradiology Services

Canadian Teleradiology Services, Inc., (“CTS”) provides Teleradiology services (remote radiology), using licensed IT platforms and hosted servers. CTS is a leading Canadian supplier and solution for remote rural hospitals and helps to ensure they can provide quality service to their communities. CTS service assist hospital’s emergency rooms and diagnostic imaging departments to offer its communities emergency care on a 24-hour 7 day a week cycle.

FogChain

FogChain is a fully integrated, end-to-end software development life cycle (SDLC) and quality assurance solutions provider. With its high-performance application development, testing and monitoring platform, Trident, FogChain’s suite of services and technology provides application development at scale with greater speed, greater efficiency and at a lower cost. The explosive demand for more edge computing and security within the Micro-Service, IoT, mobile data and driverless vehicle space places FogChain’s Build-Once-Deploy-Everywhere software architecture as a leading ecosystem of tools and resources for developers that bridge devices, operating systems and the ability to build and launch exciting new applications in a unified environment.

Learn more at www.FogChainInc.com

FogChain Media Contact: Investor Relations, info@fogchaininc.com

(604) 684-2181

Forward-Looking Information

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information.  Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans”, “ expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward‐looking statements and information concerning the Transaction and the Agreement. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. These assumptions, risks and uncertainties include, among other things, the assumption that the Company will receive the approval of its shareholders and the CSE in respect of the Transaction. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Factors that could cause the actual results to differ materially from those in the forward-looking statements include, failure to obtain the final approval of the CSE, among other factors.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

The CSE nor its market regulator does not accept responsibility for the adequacy or accuracy of this news release. The CSE has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this news release.

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Media & Investor Relations:

info@fogchaininc.com 

(415) 745-8650

About FogChain Corp.

FogChain (OTCQB: FOGCF; CSE: FOG; FRA: MUU3) is a fully integrated, end-to-end software development life cycle (SDLC) and quality assurance solutions provider. With its high-performance application development, testing and monitoring platform, Trident, FogChain’s suite of services and technology provides application development at scale with greater speed, greater efficiency and at a lower cost. The explosive demand for more edge computing and security within the Micro-Service, IoT, mobile data and driverless vehicle space places FogChain’s Build-Once-Deploy-Everywhere software architecture as a leading ecosystem of tools and resources for developers that bridge devices and operating systems and the ability to build and launch exciting new applications in a unified environment. Led by a team of Cloud and SaaS veterans, FogChain is uniquely positioned to be a leader in the next super wave of the global software development market. 

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FORWARD LOOKING STATEMENTS

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the terms and conditions of the Transaction; use of funds; and the business and operations of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Source: FogChain Corp. (CSE:FOG, OTCQB:FOGCF, FWB:MUU3)