Wall Street Signals: LOMIKO PROVIDES SHAREHOLDERS UPDATE ON THE SALE OF SUBSIDIARY LOMIKO TECHNOLOGIES INC.

LOMIKO PROVIDES SHAREHOLDERS UPDATE ON THE SALE OF SUBSIDIARY LOMIKO TECHNOLOGIES INC.




Lomiko Metals Inc. (“Lomiko Metals”) (TSX-V: LMR, OTC: LMRMF, FSE: DH8C)   At the request of the Ontario Securities Commission, Lomiko Metals is issuing this release in order to better inform shareholders of the transaction that will be presented at the Annual Special General Meeting scheduled for November 29, 2019 at 11:00 am (Vancouver time) at Suite 1400, 885 West Georgia Street, Vancouver, BC, V6C 3E8 (the “Meeting”).  Lomiko Metals encourages shareholders to read, in detail, the Information Circular mailed to shareholders dated October 25, 2019, and filed on SEDAR at www.sedar.com.
 Sale of Assets
By understanding dated July 31, 2019, Lomiko Metals has consented to sell its entirely possessed auxiliary, Lomiko Technologies Inc. ('LTI') to Promethieus Technologies Inc. (the "Buyer") for $1,236,625 in addition to $193,614.32 speaking to the repayment of costs (the "Advantage Sale Transaction"). The exchange is non-a safe distance as (1) A. Paul Gill is an executive and official of Lomiko Metals, a chief of LTI and an executive of the Purchaser; (2) Satvinder (Sat) Samra is a chief of Purchaser and an investor of Lomiko Metals; and (3) Lomiko Metals is a 20% investor of the Purchaser at present, preceding its IPO and financing. 
Lomiko Metals Inc's. autonomous executives to this exchange are Julius Galik and Gabriel Erdelyi (the "Free Directors") which include a Review ('Committee') assessing the exchange.
Assets of Lomiko Technologies
 Smart Home Devices Ltd. (“SHD”)
SHD is a privately owned business building up a progression of vitality sparing, associated with fabricating computerization and security items and is centered around creating keen home mechanization and security gadgets for homes, workplaces, modern structures, and inns. SHD was framed to popularize licensed innovation mutually being worked on at the Megahertz Power Systems advancement lab (the dominant part investor of SHD and the underlying designer of the Spider Charger idea). SHD innovation centers around control investment funds, networks, and security. LTI holds 1,792,269 portions of SHD. 
Lomiko Metals recently represented the value estimation of SHD through direct costs that were acquired and specifically, fuse costs, acquisition of stock parts, licenses, site, and offer worth. Lomiko Metals shareholding in SHD was weakened to 18.25% which caused noteworthy loss of power over the fate of SHD. Lomiko Metals was of the feeling that it should stop the representing SHD utilizing the value strategy. As of July 31, 2018, Lomiko Metals evaluated that the interest in SHD was impeded and recorded a record of $1,136,574 to the speculation to $1.
                Graphene ESD Corp. (“G-ESD”)

 G-ESD is a private company developing energy storage-based graphene platelets. On December 12, 2014, LTI purchased 1,800 shares of G-ESD Series A Preferred Stock at a purchase price of $101.27 US per share for a total consideration of $182,281 US. Each Series A Preferred Stock held by LTI may be convertible to common stock at the option of LTI and without the payment of additional consideration. Dividends would be payable at the rate per annum of $4.05 per share; however, over the period of four years there has been no activity in G-ESD and G-ESD continued to accumulate losses. As of July 31, 2019, LTI equity value in G-ESD was $56,572 and management assessed that the value in G-ESD was impaired and should be written off. 
 Reasons for the Asset Sale Transaction
Lomiko Metals has been unsuccessful in financing LTI and its assets.  Both SHD and G-ESD achieved progress and created prototypes with SHD achieving partial advancement to underwriter’s lab testing and patent filings. In 2018 it became apparent that Lomiko Metals could not make any further cash investments to the assets as Lomiko Metals' primary focus was the graphite project and alternative financing was required for LTI. Without further funding, the assets were considered without value. 
 Lomiko Metals had been funding various tech start-ups as a way to create alternative income sources.  It had funded from 2014 to present Graphene 3D Lab, G-ESD, SHD and Promethieus Technologies Inc.  The idea was to create a revenue-generating subsidiary that could act as a hedge against the vagaries of the junior mining market where the ability to raise funds for projects was and is very inconsistent.  Despite some initial success with Graphene 3D Lab and recovery of some of the funds put forward, the other projects did not see commercial success and were taxing the treasury.  Further, the market capitalization of Lomiko Metals become smaller and smaller and the percentage of technology interest increased to the point in January 2018 that the BC Securities Commission requested Lomiko Metals provide comment on whether it should undergo a Change of Business to a technology issuer.  It was at that time the concept of spinning out or creating a technology vehicle was conceived.  In 2018 Management sought funding sources for the advancement and/or sale of technology assets and settled on a plan to change the focus of the subsidiary Promethieus to a technology incubator that could qualify for listing in Europe as disclosed on April 6, 2018, and June 26, 2018 news releases.  The process is currently ongoing and confirmation of listing approval on an EU Exchange is still pending but near completion.
An initial concept of a sale of the technology assets to Promethieus was proposed by Management as a way to separate the metals and technology.  In September 2018 Promethieus changed its name to Promethieus Technologies Inc.  It was clear that Lomiko Metals needed funding in 2018-19 to complete its option and drilling and administration would tax the treasury.  During the progress of the strategy, the Independent Directors were provided progress reports regarding the inability to complete funding for Promethieus, SHD, and G-ESD during Directors meetings.  In 2019, Lomiko Metals was approached by the management of the Purchaser which made an offer to purchase SHD for $ 350,000.  Negotiations then ensued among the parties. Promethieus also became interested in licenses to manufacture SHD technology which was held by LTI and they were included in the negotiations.  After examination, Promethieus then offered to acquire all the assets of LTI and that included G-ESD shares.  Lomiko Metals then arranged to transfer its direct holdings of SHD to LTI.  The negotiations culminated in July 2019 with Promethieus offering to purchase all of the shares of LTI.  The Committee worked hard to establish a fair value for LTI and its sale.  The Committee’s main focus was to recover Lomiko Metals’ initial investment which was achieved.
 In determining that the terms and conditions of the Asset Sale Transaction contemplated thereby are in the best interests of the shareholders of Lomiko Metals, the Committee considered and relied upon a number of factors, including, among other things, the following:
For more information on this transaction please contact Gabriel Erdelyi at info@lomiko.com.
 On Behalf of the Board,
LOMIKO METALS INC.