KOOTENAY ZINC PROVIDES MARKET ACTIVITY UPDATE
Vancouver, Canada, February 8, 2018 – Kootenay Zinc Corp. (the “Company” or “Kootenay”) (CSE: ZNK; OTC: KTNND; FRA: KYH1) wishes to make the following statements regarding recent market activity in its common stock traded on the OTCQB marketplace.
On February 6, 2018, the Company was notified by the OTC Markets about certain promotional activities in relation to the Company's common shares, including certain promotional newsletter emails. The Company had engaged Awareness Consulting LLC on January 22, 2018 to provide advertising services. Until being informed by OTC Markets of the promotional material, the company was unaware of the promotional activity and is unaware of the full nature of the promotional activity and the extent of the dissemination.
Following the Company’s January 31, and February 2, 2018 news releases the trading volumes on the OTCQB increased, and the Company attributes the majority of any increased trading volumes on the OTCQB to the contents of its January 31, 2018 and February 2, 2018 news releases and the Company’s change in management and ability to finance the Company. The Company’s primary market is the Canadian Securities Exchange and its trading volume on the OTCQB was previously lower volume.
After inquiry, the Company confirms that its officers, directors or its controlling shareholders (i.e., shareholders owning 10% or more of the Company's securities) have not, directly or indirectly, authorized or been involved in any way with the creation or distribution of promotional materials.
After inquiry, the Company believes the promotional material to have been distributed by Awareness Consulting Network LLC, without the consent or knowledge of the company.
The Company engaged Awareness Consulting Network to provide certain advertising and communication services for the company, but such services expressly exclude any promotional activity, including the development and dissemination of promotional newsletters. The Company had no involvement with, or input or control in regards to, the entities they engaged for those pieces and has not engaged any investor relation providers since Jan. 1, 2017.
Neither of the company's executive officers or directors, nor, to the knowledge of the company, any controlling shareholders sold or purchased shares of common stock of the company within the past 90 days with the exception of a certain director sold an aggregate of 500,000 shares and purchased 900,000 shares in the context of the market and made all required securities filings in connection with such trades. Such transactions are available on SEDAR.
Further, the company has not issued any shares or convertible instruments allowing conversion to equity securities at prices constituting an impermissible discount to the market price of the company's shares at the time of the issuance. Pursuant to private placements through the facilities of the Canadian Securities Exchange, the company has issued the following shares and warrants.
The shares were issued at discount to market pursuant to private placement pricing policies of the Canadian Securities Exchange. The warrant exercise prices were issued at market price at the time of grant and, as such, were not discounted. Details regarding the issuances of securities by the company within the last 12 month are set out below and available on SEDAR.