Tickers: XTSE:ZZE.H, XTSX:ZZE.H
Tags: #CapitalPoolCompany
Vancouver, British Columbia - TheNewswire - September 25, 2019 - Zidane Capital Corp. (TSXV:ZZE.H) ("Zidane"), a capital pool company pursuant to TSX Venture Exchange Policy 2.4 - Capital Pool Companies (the "CPC Policy"), is pleased to provide an update on corporate activities including our legal action against Scientus Pharma, and announce that Zidane will be reinstated for trading on the NEX under the symbol ZZE.H.
Update on Hydrx Farms and Scientus Pharma Litigation
Scientus Pharma (formerly Hydrx Farms Ltd.), Precursor Capital Corp. and Zidane entered into an agreement for a business combination in November 2015. In January 2016, the parties entered into an amalgamation agreement. The transaction was disclosed in our news release on December 16, 2016 and it would have constituted Zidane's qualifying transaction pursuant to the CPC Policy. Following the significant increase in the market value of the Canadian cannabis stocks in the fall of 2016, Hydrx informed Zidane of its intention to merge with CannScience Innovations Inc. and served Zidane with a purported notice of termination of its qualifying transaction with Zidane in December 2016 and January 2017. As disclosed in our news release on January 20, 2017, Zidane commenced a legal action against Hydrx in the British Columbia Supreme Court.
The legal action is currently in the discovery phase. We expect to complete the discovery in November 2019, and we have booked a two week trial in January 2021 in the British Columbia Supreme Court in Vancouver.
It has been a long process, but Zidane is fully committed to enforcing its rights pursuant to the Zidane and Hydrx amalgamation agreement.
Corporate Update
Zidane is actively pursuing a qualifying transaction with other potential targets in a variety of sectors. We will announce a transaction to the markets with additional details in a news release if a qualifying transaction has materialized as required under the securities laws and the policies of the TSX Venture Exchange.
In the near future we expect to complete a private placement to recapitalize the company in order to fund the litigation with Scientus Pharma and to complete a qualifying transaction.
Reinstatement for Trading
Zidane has recently applied for a reinstatement to trading on the NEX and the TSX Venture Exchange has accepted the application. The TSX Venture Exchange has stated that soon after the dissemination of this news release, they will issue an bulletin reinstating Zidane on the NEX.
Further Information
For further information, please contact:
Casper Bych, Chief Executive Officer, Zidane Capital Corp.
Telephone: 604.417.6375
Email: casper@mvcap.ca
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