Vancouver, British Columbia, August 3, 2017–Chemistree Technology Inc. (Formerly -Whattozee Networks Inc. (Canadian Securities Exchange: WTZ))(the “Company”) is pleased to provide shareholders with an update of the company’s current activities as well an indication of its plans for the Company in the coming months.
Effective August 3, 2017, the Company’s name was changed to Chemistree Technology Inc. The Canadian Securities Exchange has indicated that the Company’s common shares will commence trading under the new symbol “CHM” on August 4, 2017. A new CUSIP number: 16383D104, has been assigned to Chemistree’s common shares.
As announced on July 19, 2017, the Company has entered into a strategic alliance with LG Digital Inc., (“LG”) a Vancouver-based digital marketing and production company. This alliance was struck so that the Company could bring its social media marketing technology to LG’s client base in specific, and to the Cannabis industry in general.
In addition to marketing events, brands and any other activities in the cannabis industry, the Company will continue to identify other avenues for growth for social media marketing services, as well as brand marketing, product marketing and more general services like financing and corporate consulting.
To that end, the Company is currently in discussions with a separate video production company, which has a widely varied client base of industrial, fashion, automotive, and food service companies,both public and private,to arrive at a similar relationship to that with LG Digital. Chemistree expects to have completed these discussions shortly and will provide an update accordingly.
As announced, the Company sees the cannabis industry as a source of focus. The reason for this is simply that marketing of cannabis companies, their products as well as information about the industry itself is in its infancy. Initially, the Pacific Northwest will be the Company’s main target geography, but this is expected to expand from British Columbia and Washington state into Oregon and eventually California.
Chemistree has engaged with potential clients interested in being marketed by the Company and its partners,with positive results. While these growth avenues are currently forward-looking and non-material, the Canadian Securities Exchange has requested expanded disclosure about the Company’s objectives.
The Company is also actively engaged in confidential discussions with aWashington State-based cannabis producerto assist them with their social media marketing and brand development. It is unknown at this time when these discussions will be completed given on going due diligence.
The Company wishes to clearly state that it is not,or proposing to be,in the cannabis production business in the United States or Canada. It also wishes to inform shareholders that there are significant legal restrictions and regulations that govern the cannabis industry in both Canada and the United States. Chemistree will at all times abide by and respect these laws and regulations in all its future potential business engagements.
Over the past month, members of Chemistree’s management have visited several Washington cannabis production facilities and points of sale to establish a base of knowledge of the business. Management has also attended a cannabis industry conference in California and toured operations in that state as well, in order to begin the process of meeting potential clients and familiarizing the Company with the laws and practicalities of the industry in California. The Company expects to send members of management to Oregon for the same purposes in the coming weeks.
Management has taken a great deal of time and care to analyze the potential business opportunities in these three states and is of the firm conviction that the growth underway since state legalization is likely not stopping in the foreseeable future. As such,significant opportunities exist in working with producers and the various dispensaries to provide social media marketing services in what is already a competitive landscape.
Likewise, while the Company initially developed its offering in the event marketing and social media exchange industry, it has subsequently recognized the greater opportunities available in the broad marketing service it could provide to potential clients. The Company has accepted this reality and pivoted/expand edits business in order to be more inclusive and has determined a more accurate description of itself as a “social media marketing” company.
The logical core business is marketing,which the Company wishes to inform its investors includes, and was always intended to include events, products, brands, locations,reputation and any other form of marketing as yet unforeseen but potentially in demand from future clients.
While it was not the Company’s intention to limit business opportunities to one business niche, the Listing Statement the Company filed as part of it Change of Business filing with the Canadian Securities Exchange provided specific disclosure related only to the event business.
Management and the Board of Directors of the Company recognize that this additional disclosure provides appropriate clarity as to the Company’s business and its plans going forward.
Chemistree isalso pleased to announce a private placement financing to raise up to $2,000,000for general corporate working capital purposes. The offering will be non-brokered and consist of up to 8,000,000 common sharesat a price of $0.25 per share. Finder’s fees may be payable in connection with this offering.
For more information, please contact Karl Kottmeier, President, at (604) 689-7422.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.