NORTH YORK, August 12, 2021 - ZTEST Electronics Inc. (“ZTEST” or the “Company”) (CSE - “ZTE”) is pleased to announce that Conversance Inc. (“Conversance”), a private company in which ZTEST owns a 25.29% equity interest, has acquired an initial 28% interest in 3955 Trading Inc., operating as Cannamerx (“Cannamerx”), pursuant to a Purchase Agreement dated August 1, 2021 with Cannamerx and various shareholders of Cannamerx. Conversance has the opportunity to acquire a controlling interest in Cannamerx provided specific milestones are achieved.
Cannamerx, a Canadian company based in Ottawa, Ontario, was launched in November 2017. Cannamerx operates an international cannabis and hemp exchange platform and facilitates trade in bulk cannabis, hemp, and cannabis and hemp products, between licensed producers worldwide. Cannamerx’ international transaction capability was launched in October 2018, while trading of hemp and hemp products commenced in March 2019.
It is intended that Conversance will; (i) put in place an interim platform, (“TRADEX Alpha”) by completing a re-write of the existing Cannamerx platform to automate certain brokering functions; and (ii) develop a new, improved trading exchange platform (“TRADEX Gamma”) based upon its proprietary Chronicle technology. Conversance will receive additional shares of Cannamerx upon completion of each of these objectives as well as when Cannamerx achieves a certain level of operations based upon these new platforms. Based upon Cannamerx’ current share structure, Conversance would hold a controlling interest in Cannamerx after these shares are issued.
It is also expected that the Chronicle distributed ledger and matching engine will replace the current auction process. The current process is limited to seller-initiated "English" style auctions while the Chronicle engine is intended to enable many other forms of specialized auctions, including buyer-initiated auctions, "Dutch" auctions, or partial-fill auctions.
Joseph Chen, CEO of Conversance, stated “Chronicle’s distributed ledger technology is expected to significantly increase the volume of transactions per second in comparison to the legacy software. With successful integration, Chronicle will also appreciably simplify record keeping and resource planning, helping to ensure accuracy, compliance, and ease of use in a very guarded industry.”
Steve Smith, President and CEO of ZTEST stated, “we are very pleased that Conversance has chosen to launch its commercial operations by enhancing the Cannamerx existing platform while simultaneously customizing Chronicle, its proprietary distributed ledger platform, to supersede that enhanced platform. This launch should represent a commercial demonstration of Chronicle which can also be customized to facilitate numerous other applications.”.
For more information contact: Steve Smith, CEO (604) 837-3751 email: stevesmith15@shaw.ca
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