OTTAWA, Ontario--(BUSINESS WIRE)--Edgewater Wireless Systems Inc. (TSXV: YFI) (OTCQB: KPIFF) ("Edgewater Wireless" or the "Company") wishes to make the following statements regarding recent market activity in its common stock traded on the OTCQB marketplace.
The Company was made aware of certain promotional activity related to trading of its securities on May 1, 2018 through correspondence provided to the Company by OTC Markets. The promotional activity in question involved certain promotional newsletter emails encouraging investors to purchase the Company's common stock. Prior to receipt of the OTC Markets correspondence, the Company was unaware of the promotional materials and related promotional activity. The Company is unaware of the full nature of the promotional activity and the extent of its dissemination. The promotional materials were prepared and disseminated by third parties unknown to the Company. The Company was not involved in the preparation or dissemination of the promotional material, made no payments in relation thereto and has no agreements with the parties that prepared and disseminated the promotional material. The Company had no editorial control over the content of the promotional material.
It appears that many of the factual statements and claims in the promotional materials were taken from publicly available sources such as the Company’s website, publicly disseminated news releases filed with securities regulators and from the OTC Markets website. The Company is of the view that these statements which have been extracted from authorized corporate sources are factual and non-misleading, but numerous statements which the Company views as overly promotional were added by the unknown authors of the promotional materials to the aforementioned publicly available information regarding the Company. Such statements encourage investors to purchase the common stock of the Company. These statements only express the view of the authors of the promotional materials and the Company disclaims any exaggerated or potentially misleading statements contained in the materials. In particular, the Company disclaims any statements respecting future revenue, earnings or income and any statements respecting future increases in the price of the Company’s common stock. The Company does not believe that the dissemination of the promotional materials resulted in any increased trading activity in the Company’s common stock
The Company has not engaged any third party service providers to provide investor relations services, public relations services, marketing, or other services related to the promotion of the Company’s securities. All of the Company’s investor relations services are carried out in-house by an employee under the supervision of management of the Company. The Company uses a highly reputable Press Release service – Business Wire – a Berkshire Hathaway company, to disseminate press releases to the market. The Company responds to inquiries from shareholders, potential investors, and investment analysts, and generates its own marketing and investor relations materials in compliance with the rules of the TSX Venture Exchange. To the Company’s knowledge, after due inquiry, neither the Company, nor any of its officers, directors, controlling shareholders (shareholders owning 10% or more of the Company's securities) or any third party service providers have been involved with the creation or distribution of promotional newsletter emails that make exaggerated or misleading claims related to the Company and its securities.
After inquiry of management, neither the Company nor any directors, officers, control persons or third party service providers of the Company have sold or purchased the Company’s securities within the past 90 days except as fully disclosed by Edgewater Computer Systems Inc. in their filings on the Canadian System for Electronic Disclosure by Insiders (known as “SEDI”). The last reported sale by Edgewater Computer Systems Inc. was March 24th, 2018. No further sales are known to have occurred. The Company is not aware of any reason to indicate that historically the company’s securities have traded at high volumes on the TSXV and that the volume and price increase which occurred after April 30 is not seen as unusual given past trading on the TSXV. We do not believe that the volumes over the past week on the OTC QB represent a significant departure from the fluctuation in volumes which have historically been seen on the TSX Venture Exchange.
The Company has not issued any equity securities or securities convertible into equity securities at a discount to market since August, 2016. The Company has been listed on the TSX Venture Exchange and its predecessors for in excess of 25 years and securities issuances have been subject to and carried out in compliance with the pricing restrictions and limitations imposed by those stock exchanges. To the extent that any securities have been issued at a discount to market, such discounts have been within the range allowable by the stock exchanges on which the Company’s common stock has been listed. Details regarding the issuances of securities by the Company are available on SEDAR at www.sedar.com.
The Company is committed to compliance with the OTC Markets Group Policy on Stock Promotion and the OTCQB Standards and Canadian securities laws. The Company encourages those interested in the Company to rely solely on information included in press releases issued and distributed by the Company via Business Wire, an approved newswire service for Disclosure & News Services combined with its filings and disclosures made with the Canadian securities regulators as well as information provided through the OTC Markets and available on their websites: www.sedar.com and www.otcmarkets.com, respectively.