Vancouver, British Columbia--(Newsfile Corp. - December 13, 2024) - Scope Technologies Corp. (CSE: SCPE) (OTCQB: SCPCF) (FSE: VN8) ("Scope Technologies" or the "Company") announces that it has been requested by OTC Markets Group Inc. ("OTC Markets") to issue this statement about promotional activity concerning its common shares (the "Shares") traded on the OTCQB Venture Market ("OTCQB") (operated by OTC Markets).
On December 9, 2024, OTC Markets informed the Company that it became aware of certain promotional activities concerning the Company and its Shares traded on the OTCQB, including an online editorial (the "Promotional Materials") published by Creative Direct Marketing Group Inc. ("CDMG") discussing the Company, its business, the economy, and the data security.
On June 13, 2024, the Company entered into a work order with CDMG whereby CDMG would provide investor relations and marketing services to raise public awareness of the company and increase brand awareness of its QSE platform. Accordingly, the Promotional Material was paid for by the Company.
The engagement of CDMG, the nature of the relationship between the Company and CDMG, as well as the compensation paid CDMG, was publicly disclosed in news releases on September 13, 2024, September 20, 2024 and November 14, 2024, which can be found under the Company's profile on SEDAR+ (www.sedarplus.ca).
The Company provided CDMG with publicly available sources of information for its marketing materials and management reviewed and approved the materials prepared by CDMG prior to their dissemination, including to ensure factual accuracy. The Company does not believe the statements in the Promotional Materials were materially false or misleading. However, the Company notes that investing in the Company's securities involves certain risks and uncertainties which investors should review prior to making any investment decision. The Company encourages all investors to undertake proper due diligence and carefully consider all investment decisions. The Company directs potential investors to rely solely on its filings and disclosures made with the Canadian Securities Administrators, available at www.sedarplus.ca.
After inquiry of management, other than CDMG and the third party service providers noted below, no directors, control persons, officers, or controlling shareholders have been involved with the creation, distribution, or payment of promotional materials related to the Company and its securities.
The Company understands this promotional activity coincided with increased trading activity in its Shares beginning on approximately November 25, 2024. However, the Company believes that the Promotional Materials are not the sole reasons for the increase in trading volume of its Shares.
After inquiry of management, its officers, directors, any controlling shareholders, or any third-party service providers, the Company is not aware of any purchases or sales of the Company's shares in the past 90 days except for (i) the exercise of 584,000 stock options at an exercise price of $0.60 per share. Of the 584,000 stock options, a total of 234,000 stock options were exercised by directors and officers and were filed on the Canada's insider reporting platform www.sedi.ca, and (ii) Market IQ Media Group Inc. did not provide the Company with a response on whether it has purchased or sold securities of the Company over the last 90 days.
The Company has engaged the following third-party service providers to provide investor relations services, public relations services, marketing, or other related service within the last twelve months: Maynard Communication Limited (engaged in October 2022), Market IQ Media Group Inc. (which is a subcontractor by Maynard Communication Limited and not directly paid by the Company), Think In Marketing Data and Email Services (engaged in March 2024), CDMG (engaged in June 2024 and commenced in November 2024), Insight Capital Partners Inc. (engaged in September 2024) and Plutus Invest & Consulting GmbH (engaged in October 2024).
Other than pursuant to financings and acquisition transactions in accordance with Canadian Securities Exchange policies, which the Company has publicly disclosed in news releases dated July 10, 2024, July 31, 2024 and August 7, 2024 (available at: www.sedarplus.ca), the Company has not issued shares, or convertible instruments allowing conversion to equity securities, at prices constituting, at the time of issuance of such shares or convertible instruments, a discount to the then current market price.
About Scope Technologies Corp.
Headquartered in Vancouver, British Columbia, Scope Technologies Corp. is a pioneering technology company specializing in quantum security and machine learning. Through its primary brand, QSE Group, Scope provides next-generation solutions in data security, quantum encryption, and decentralized storage, empowering businesses with secure, scalable technologies that drive growth and operational efficiency.
This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding beliefs, plans, expectations, future, strategy, objectives, goals and targets, and more specifically, the use of proceeds of the Offering. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks and are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, those risks and assumptions described in the Company's prospectus dated August 10, 2022, a copy of which is available under the Company's profile on SEDAR at www.sedarplus.ca. While Scope considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions, continued satisfaction of Canadian Securities Exchange requirements, product safety and recalls, regulatory compliance and risks associated with the Company's business. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.
The Canadian Securities Exchange has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
