Globalive Technology Inc. (TSX-V:LIVE) (‘Globalive’) exercised its call right to acquire a 41% stake in Flexiti Financial Inc. (‘Flexiti’) from Globalive Capital Inc. (‘GC’) on January 9, 2019. The transaction is structured as the acquisition by Globalive of an entity named 2629331 Ontario Inc., which indirectly holds a 41% economic stake and a 51% voting control over Flexiti. Upon completion of the transaction, Globalive would assume CAD 7.5 million in secured debt obligations (convertible into shares of Globalive at CAD 1 per share), as well as a CAD 6 million debt obligation, which (plus approximately CAD 0.75 million in accrued interest and fees) would be due and payable to GC. Globalive intends to raise approximately CAD 10 million on a private placement basis, of which GC expects to provide a lead order of CAD 4 million and from Flexiti rights offering of approximately 1.5% pro rata share up to $0.23 million . Consummation of the transaction is subject to certain conditions, including Globalive or 2629331 Ontario successfully raising equity financing, approval of the TSX Venture Exchange and minority shareholder approval in accordance with Multilateral Instrument 61-101 ("MI 61-101"). The transaction is subject to MI 61-101 as GC owns 2629331 Ontario and is also the controlling shareholder of Globalive.