OTC Markets Requests Logiq to Comment on Recent Promotional Activity
NEW YORK, Nov. 05, 2021 (GLOBE NEWSWIRE) -- Logiq, Inc. (OTCQX: LGIQ, NEO: LGIQ) (“Logiq” or “Company”) has received a request from the OTC Markets Group to comment on recent promotional activity related to Logiq’s common stock quoted on the OTC Markets.
On October 8, 2021, Logiq engaged Civet Digital Inc. to independently develop and publish digital media to help build awareness for Logiq as a publicly traded company. Logiq announced its plans to pursue the new digital marketing campaign via a September 3, 2021 press release as part of a larger push for brand and company awareness. Civet then retained Emerging Markets LLC (EMC) which then engaged certain third-party marketing and advertising firms including SmallCapFirm (SCF) and StockStreetWire (SSW) to provide content distribution and advertising services.
Materials published starting on November 1, 2021 by SCF, SSW or its contractors presented a general overview of the Company’s business as well as the Company’s growth potential and its industry. Logiq provided SCF and SSW publicly available source information for these materials, reviewed the materials for accuracy and had full editorial control over the materials. SCF and SSW properly disclosed that such content was paid for by Logiq, including the amount of cash consideration paid and confirmation that SCF and SSW did not own any Loqiq shares. Civet and EMC likewise do not own any stock in Logiq.
On November 2, 2021, Company management was notified by OTC Markets that it was monitoring these promotional activities. After review of said materials, the Company believes that none of the materials published were misleading or false, or included information regarding the Company that had not yet been previously disclosed by the Company in compliance with Regulation FD and related U.S. Securities and Exchange Commission (SEC) reporting requirements. The Company has not determined whether the publication of the materials had a material impact on the trading of the Company’s common stock. It had recently released preliminary financial results for its third quarter ended September 30, 2021 showing increased revenues and gross margins as well as disclosed a potential spin-off of its AppLogiq business unit.
Upon inquiry of the Company’s management, directors, control persons and third-party service providers, and to the best of the Company’s knowledge, during the past 90 days no such persons executed any transactions of the Company’s securities for purchase or sale of stock, except as to sales made by its CEO, Tom Furukawa, to satisfy the payment of withholding tax liability incurred upon the vesting of restricted stock units as disclosed in a Form 4 filed with the SEC on September 9, 2021 (and disclosed in a press release issued on September 10, 2021) and certain purchases made by the Company’s President, Brent Suen, as disclosed on Form 4 filed with the SEC on August 27, 2021.
Over the last year, the Company has engaged the following third parties to provide investor relations, public relations, marketing, advertising and other related activities: Civet (which engaged SCF and SSW) and Capital Market Access, which is the company’s investor relations firm.
From time-to-time over the past several years, the Company has sold shares of its restricted common stock in private transactions at prices per share which constituted a discount to the market rate at the time of the respective issuance. Most recently, in November and December 2019, the Company sold an aggregate of 2,240,000 shares of restricted common stock in a private transaction to individual accredited investors at a price per share of $0.25, which constituted a discount to the current market rate at the time of the issuance.
From April to August 2020, the Company entered into convertible promissory notes issued to various investors whereby the Company borrowed $2,911,000. As disclosed in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 16, 2021, with the exception of two convertible promissory notes issued amounting to the principal amount of $30,000, such notes were converted into shares of the Company’s common stock at $2.50 following the qualifying conversion date of July 17, 2021. On September 1, 2021, 1,169,652 shares of the Company’s common stock underlying such Notes were issued pursuant to this conversion. No such convertible instruments are currently outstanding. Additionally, since August 2020, Logiq has sold registered common stock in several takedowns from its Form S-3 at or near the market price on the date of the sale of such common stock as well as an Initial Public Offering in Canada of registered common stock and warrants. For more information about these past issuances, please refer to the Company’s filings with the SEC at sec.gov.
For more complete and specific information regarding the Company, its prospects and the risks associated with those prospects, readers should consult the Company’s public filings on SEC and SEDAR, its website and other reliable sources. The Company encourages investors to contact their investment advisers prior to making any investment.
Logiq Inc. is a U.S.-based leading global provider of e-commerce and fintech business enablement solutions. Its DataLogiq business provides a data-driven, end-to-end marketing and consumer acquisition solution. Its AI-powered LogiqX™ data engine delivers valuable consumer insights that enhance the ROI of online marketing spend and personalization. The company’s Fixel technology offers simplified online marketing with critical privacy features.
In its AppLogiq business, Logiq’s platform-as-a-service, branded as CreateApp™, enables small- and medium-sized businesses worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background. CreateApp™ empowers businesses to reach more customers, increase sales, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way.
CreateApp™ is offered in 14 languages across 10 countries and three continents, including some of the fastest-growing emerging markets in Southeast Asia. The company’s PayLogiq, branded as AtozPay™ in Indonesia, offers mobile payments, and GoLogiq, branded as AtozGo™ in Indonesia, offers hyper-local food delivery services. Connect with Logiq: website | LinkedIn | Twitter | Facebook.
Important Cautions Regarding Forward Looking Statements
This press release contains certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This press release also contains forward‐looking statements and forward‐looking information within the meaning of Canadian securities legislation that relate to Logiq’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward‐looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward‐looking statements. No assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release. Forward‐looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Logiq’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In particular and without limitation, this press release contains forward‐looking statements regarding our products and services, the use and/or ongoing demand for our products and services, expectations regarding our revenue and the revenue generation potential of our products and services, our partnerships and strategic alliances, the impact of global pandemics (including COVID-19) on the demand for our products and services, industry trends, overall market growth rates, our growth strategies, the continued growth of the addressable markets for our products and solutions, our business plans and strategies, the proposed separation of Logiq’s AppLogiq and DataLogiq business into two public companies, including, without limitation, our ability to successfully locate and consummate the contemplated strategic transactions, the structure of any such transaction, timing of such transaction, and the valuation of the businesses after completion of any such transaction, if any, and other risks described in the Company’s prior press releases and in its filings with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K and any subsequent public filings, and filings made pursuant to Canadian securities legislation that are available on www.sedar.com, including under the heading “Risk Factors” in the Company’s Canadian Prospectus.
Logiq undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Logiq to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward‐looking statement. Any forward‐looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
Brent Suen, President
Media & Investor Contact
Ronald Both or Justin Lumley
CMA Investor & Media Relations
Tel (949) 432-7566