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Re: trader53 post# 8199

Tuesday, 08/04/2015 11:50:18 AM

Tuesday, August 04, 2015 11:50:18 AM

Post# of 44089
Shareholder update came out this week.

August 4th, 2014

Dear Fellow Shareholders,

I would like to provide an update to you on Connectyx and the challenges facing the company since our last report on June 14, 2014.

As stated in our Disclosure Statement, on November 14, 2013, the Company received a letter from the Depository Trust Company, requiring information related to Regulation D, 504 issuances that occurred in 2009 and 2010. The letter requested an opinion of counsel to confirm that the issuances were done in compliance under federal and state laws. The letter also stated that a Global Lock would be imposed if the company failed to comply. On January 29, 2014, the company submitted a letter of opinion stating that the issuances in question were done in compliance with all applicable federal and state laws.

It is important to note as a matter of record, on August 16, 2013, the Financial Industry Regulatory Authority (“FINRA”) issued an Order Accepting Offer of Settlement involving a broker-dealer who sold shares on behalf of a former shareholder of the Company as well as four other companies named in the original Order. The Order states that the broker-dealer and the former shareholder violated Section 5 of the Securities Act of 1933 by selling unregistered securities without a proper exemption. All shares issued by Connectyx under Rule 504, complied with all regulatory guidelines at the federal and state level.

Unfortunately, the FINRA Order also states that Rule 504 was not able to be relied upon by the broker-dealer and the former shareholder as part of the resale because the shares were sold in a manner that resembled a distribution. The FINRA Order does not say that the shares were not issued under a proper exemption (Rule 504) by the Company, only that the broker-dealer and the former shareholder were not eligible to use the exemption due to the fact that it violated the distribution provision of the Rule. The FINRA Order does not list any violations by the Company, only by the broker-dealer and the former shareholder. Additionally, Connectyx never had any direct or indirect dealings with the broker-dealer.

As a matter of record, subsequent to the FINRA Order, management of Connectyx vigorously refuted the DTC action and provided DTC with opinion from counsel on January 29, 2014. Our SEC counsel has argued through numerous updates and communications to the DTC that the issuance of shares to the former shareholder was affected under a valid exemption. The Company stated then and continues to defend its position that the shares were being issued with a view for distribution by the former shareholder, and did not issue the shares as part of a scheme to evade the registration requirements of Section 5. However, the DTC, rejected the Company’s argument and imposed the Global Lock.

Management understands the severity and impact of the Global Lock, which suspends both deposits and book-entry transfers of our securities, as well as withdrawals and physical deliveries of our securities. DTC has proposed to the SEC various changes to the Global Lock removal process, one of them being an automatic removal after 12 months. However, as of the date of this letter, no such change has taken effect nor does our legal counsel see this action viable in the near future.

As most of our shareholders know with a Global Lock in place, that all trading has ceased and the company’s per share stock valuation is at $0.00001 per share. It is also imperative that all shareholders are aware that the SEC has posted on the OTC Markets the following notice regarding the trading of any Connectyx securities as a result of the DTC Global Lock, “No Information Warning This Company may not be making material information publicly available. If you are an affiliate, employee, insider, or any person in possession of nonpublic material information about this company, please be advised that buying or selling this security may constitute trading "on the basis of" material nonpublic information prohibited under Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5 and 10b5-1 thereunder. Violators of these laws are subject to civil and criminal penalties.”

All Shareholders can view the FINRA Order at: http://www.connectyx.com/PDFs/FINRA_2010021108301.pdf

At this juncture management does want to report that the operating entity of Connectyx, Connectyx Technologies Corp is still active. Our YTD revenues for our wellness products were nominal at ~ $60,000. Management is still actively pursuing alternative ventures and synergistic opportunities. Management continues to reduce all operating costs so that the Company can operate with minimal costs to support its customer base.

Management is also discussing with its SEC legal counsel the prospect of taking Connectyx private as a result of the Global Lock. If this is feasible, management will update all Shareholders in writing via our website and or email if you have subscribed to our Investor Forum at http://connectyx.com/investorRelations.aspx .

In closing, on behalf of all of us at Connectyx, I thank you for your continued support of our Company.

Sincerely,

Jon Pevzner
Co-Founder & President


Safe Harbor Act: This communication includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this communication.
Connectyx Technologies Holdings Group, Inc.

Investor Relations Department
Connectyx Technologies Corp
49 SW Flagler Ave, #302
Stuart, FL 34994
772-600-2581

Investmentrelations@connectyx.com

Visit us at: www.connectyx.com www.med-flash.com

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