PROTECH HOME MEDICAL CORP DISCLOSURE REGARDING CYBERSCAM INCIDENT
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
The Company has retained RoundTower Technologies LLC, a leading cybersecurity firm, which has moved to close the breach. RoundTower is conducting a comprehensive forensic review and ensuring the Company’s head office computer systems are secure moving forward.
Following the redemption of the Debentures, the Company will have sufficient liquidity and working capital to operate the Company without interruption or change, and an otherwise healthy balance sheet.
“I am terribly disappointed with the occurrence of this cyberscam breach,” said Greg Crawford. “Although this loss, if realized, is a setback for the Company, given the work that we have done over the past several quarters, the Company’s operations and margins are unaffected by these events and our balance sheet will remain in a healthy overall position. I am also very pleased to support the Company with additional capital to enable us to redeem the Debentures and continue to make the substantial strides we have made since December 2017.”
The loan by Mr. Crawford is a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transaction is exempt from the formal valuation approval requirements of MI 61-101 since none of the securities of the Company are listed on a prescribed stock exchange. The proposed transaction is exempt from the minority shareholder approval requirements of MI 61-101 since, at the time the transaction was agreed to, neither the fair market value of the transaction, nor the fair market value of the consideration for the transaction, insofar as it involves interested parties, exceeded 25% of the Company’s market capitalization.
While the Company is actively and aggressively taking all measures to recover the funds, there can be no assurance that one or more measures will result, or successfully conclude in a timely manner or at all. Additional information will be released by the Company as it occurs.