Toronto, Ontario--(Newsfile Corp. - August 16, 2018) - Augusta Industries Inc. (TSXV: AAO) (the "Corporation") is pleased to announce that its wholly owned subsidiary, Paragon Blockchain Inc. ("Paragon"), has entered into a non-binding letter of intent dated August 12, 2018 (the "LOI") with CareX Blockchain Platform Inc. ("CareX"), an arm's length party to the Corporation.
Pursuant to the LOI, Paragon will acquire an aggregate of 2 million shares (the "CareX Shares") in the capital of CareX in exchange for the issuance of an aggregate of 1,250,000 common shares (the "Consideration Shares") in the capital of Paragon at a deemed price of $0.20 per Consideration Share.
The acquisition of the CareX Shares and the issuance of the Consideration Shares is subject to a number of conditions, including, but not limited to, the Corporation completing its due diligence investigation of CareX, a share exchange agreement being entered into between CareX, Paragon and the Corporation and the receipt of regulatory approvals.
CareX is building a new way for people to find and pay for healthcare by utilizing tokens ("CARE Tokens") on a blockchain platform. Using its platform, patients can control their health records and purchase healthcare services at a reduced cost, regardless of borders. At the same time, providers can cut their administrative burdens, get paid immediately, and access a global market of customers.
CARE Token holders are able to utilize the CareX wallet to securely host their medical records, granting short-term access to providers as needed and decided. Preliminary unofficial diagnoses to ailments will also be available thanks to CareX's medically trained AI-based chatbot.
The CareX network brings back a transparent market where all prices and payments are immediate and available. It runs alongside and on top of existing insurance models as a low cost, easy-to-use alternative solution.
About the Corporation
Through its wholly owned subsidiaries, Marcon International Inc. ("Marcon"), Paragon and Fox-Tex Canada Inc. ("Fox-Tek"), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox-Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
Paragon has the potential to unlock substantial new opportunities capable of impacting the business of Marcon. Specifically, Marcon seeks to create an eco-system in the supply chain management of clients to change the dynamics of the scoping and bidding process by providing vendors and subcontractors with A.I. data mining tools to proactively drive the process. Blockchain technology is of critical importance to Fox-Tek as well particularly the expansion of its' non-intrusive technology in the oil & gas industry, whose clients include many of the biggest companies in the world.
Allen Lone, President, CEO, Augusta Industries Inc.
Tel: (905) 275 -8111 Ext 226
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and as neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.