Montréal – TheNewswire - April 28, 2020 – ZeU Crypto Networks, Inc. (CSE: ZEU) (CNSX:ZEU.CN) would like to inform its shareholders and stakeholders that it has elected to use the provisions of BC Instrument 51-515 in order to postpone the filings of its 2019 annual audited financial statements and interim financial statements for the first quarter of 2020. The Company is also providing a corporate update.

The Corporation has also initiated the organization of its annual shareholders’ meeting or AGM. Due to the COVID-19 situation, the AGM will be held virtually using the encrypted communication infrastructure of its partners, in collaboration with its transfer agent, Computershare, and governed by national regulations. The Corporation expects to hold its shareholders’ meeting on or around August 13, 2020.

Due to logistical issues and delays caused by the COVID-19 virus, the Corporation is relying on the exemption provided in British Columbia Instrument 51-515 Temporary Exemption from Certain Corporate Finance Requirements (and similar exemptions provided by other Canadian securities regulators) (the “Instrument”) to postpone the filing of the following continuous disclosure documents (collectively, the “Documents”):

- the Corporation’s audited annual financial statements for the twelve-month period ended December 31, 2019, and related certifications; and

- the Corporation’s management discussion and analysis for the twelve-month period ended December 31, 2019; and

- the Corporation’s interim financial statements for the three-month period ended March 31, 2020, and related certifications; and

- the Corporation’s management discussion and analysis for the three-month period ended March 31, 2020.

The Instrument provides the Corporation with an additional 45 days from the deadline otherwise applicable under British Columbia securities laws to make the filing. Until the Corporation has filed the Documents, members of the Corporation’s management and other insiders are subject to a trading blackout reflecting the principles contained in section 9 of National Policy 11-207 Failure to File Cease Trade Orders and Revocations in Multiple Jurisdictions such that they are in a blackout period until the end of the second trading day after the Documents have been disclosed by way of a news release.

At this time, the Corporation expects to file the Documents within the 45 days delay granted.

This Cease Trader Order applies only to Directors, Officers and Insiders of the Company. Regular trading and normal disclosure obligations remains and are unaffected.

Recent global events pertaining to COVID-19 have impacted the Corporation, its employees, and its ability to rely on timely information in relation to its financial reporting obligations. The Corporation continues to pursue the best available paths to manage operational risk and preserve capital during this difficult time.

There have been no material business developments since the filing of the Corporation’s unaudited interim financial statements and associated management’s discussion and analysis for the three- and nine-month periods ended September 30, 2019, that have not been otherwise disclosed by the Corporation by way of a news release.

Corporate Update

Management remains committed to the well-being of our development team and our partners in these challenging times. To this end, the Company has been implementing government-recommended protocols, including social distancing and moving to 100% remote teams. However, the Company has seen diminished productivity with third-party providers as they adapt to new realities, including the furloughing of staff. To minimize the impact of continued government restrictions and supply chain interruptions, the management of ZeU remains responsive by meeting regularly to resolve issues as they arise. The Company is proactively communicating with all third parties regarding unavoidable impacts on its timelines and schedules. Due to the aforementioned issue of third-party providers furloughing staff, access to some of our third-party servers was impacted. Therefore, the Company is in the process of moving these services in-house. 

Mitigation measures

To mitigate the financial impacts of the pandemic and preserve financial resources as well as in solidarity with our shareholders impacted by COVID-19, the Company has implemented important cost-saving measures:

- The Board of Directors will not receive any compensation for the second quarter of 2020; 

- The CEO, CFO, COO and Corporate Secretary have been furloughed and will not receive any compensation for Q2 2020; 

- The CMO position has been eliminated.

The short-term savings should allow the Company to accelerate initiatives related to certain aspects of its blockchain healthcare data platform and its Mula Suite of products, MulaMail, MulaMessage and the next evolution toward business video conferencing and virtual offices. The SaaS healthcare platform will also be accompanied by a new social distancing application, and the infectious diseases tracking module of the platform will return to the forefront of the project. 

The Company has moved resources from the gaming development unit to infectious diseases, and pandemic-related test kits tracking and social distancing applications development and is engaged in talks with infectious disease test kits distributors to leverage the current situation to its advantage by finding financing and data providers partners to finish and conduct live tests of the platform.

A more detailed update with specific development and deployment progress should be made available by the Company in early May. 

ON BEHALF OF THE BOARD OF DIRECTORS

“Frank Dumas”

Francois (Frank) Dumas

President & CEO

About ZeU 

ZeU is a forward-thinking Canadian technology company that has developed a state-of-the-art blockchain protocol, providing the foundation for the next-generation of encrypted and distributed networks. Thanks to its high level of sophistication, ZeU’s technology maximizes transparency, security and scalability as well as big data management. ZeU’s strategy is to monetize blockchain transactions in diverse sectors such as payment, gaming, data, and healthcare.

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.