RHA Annidis Corporation

OTTAWA, Feb. 26, 2018 /CNW/ - Annidis Corporation (TSX Venture: RHA) ("Annidis" or the "Corporation"), announces that due to much lower than anticipated sales volumes in 2017 and 2018 (during Q4 2017 only 6 units were sold and shipped and no units have been ordered to date in 2018) and an inability to ultimately conclude the refinancing transactions that were announced on November 30, 2016, the Corporation's current financial position has become quite tenuous such that Annidis' ability to continue to meet its financial obligations and operate as a going concern has become increasingly improbable.

At the present time Annidis has very limited cash reserves and has defaulted on a number of outstanding debt obligations including;

1. $1,000,000 secured promissory note with Mistarunited Technology Co., Limited ("Mingda"), a control person and insider of Annidis issued on June 4, 2013, and matured on June 25, 2016;
2. $455,154.00 secured promissory note with Slemko Investment Corporation, a corporation owned and controlled by Gerald Slemko an insider of Annidis, issued on June 4, 2013, and matured on June 25, 2016;
3. $1,544,846.00 in secured promissory notes with private investors issued on June 4, 2013, and matured on June 25, 2016;
4. $1,000,000 secured promissory note with Mingda issued on May 28, 2014, and matured on May 28, 2017;
5. $1,000,000 secured promissory note with a private investor issued on July 17, 2014, and matured on January 31, 2017;
6. $2,003,589 convertible promissory note with Mingda issued on November 17, 2014 and matured on May 17, 2017;
7. $150,000 unsecured promissory note with Mingda issued on November 25, 2015 and matured on November 25, 2016;
8. $200,000 unsecured convertible promissory note with Mingda issued on March 4, 2016 and matured on March 4, 2017;
9. $1,300,000 unsecured promissory note with Mingda issued on April 14, 2016 and matured on December 31, 2016;
10. $150,000 unsecured convertible promissory note with Mingda issued on March 17, 2016 and matured on March 17, 2017;
11. $100,000 unsecured convertible promissory note with Mingda issued on March 31, 2016 and matured on March 31, 2017;
12. $221,000 unsecured promissory note with Mingda issued on July 29, 2016 and matured on December 31, 2016; and
13. $500,000 unsecured promissory note with Mingda issued on July 29, 2016 and matured on December 31, 2016.

While the Corporation is continuing to pursue negotiations with its creditors and potential investors, Annidis' board of directors has taken immediate action to dramatically reduce the Corporation's operating costs by laying off the majority of the Corporation's employees and by employing other similar cost cutting measures. The Corporation intends to review all strategic financing alternatives, including finding a strategic partner to enhance the value of its intellectual property and other assets, completing a business combination with a strategic partner and/or selling the business, including all intellectual property assets. The Corporation intends to consider and pursue all available strategic alternatives, including finding a strategic partner to enhance the value of its intellectual property and other assets, completing a business combination with a strategic partner and/or selling the business, including all intellectual property assets. Notwithstanding these efforts, there can be no assurance that the Corporation will be successful in finding a strategic partner or investor, selling any part of the business or finding another viable alternative to remain a going concern. If it is unsuccessful in finding and completing such a transaction, the Corporation's business, operations and financial condition could be seriously affected, potentially to the point that the Corporation will not remain a going concern.

In addition to the foregoing the Corporation would like to announce the resignation of Michael Crowley from his position as a director of the Corporation effective February 8, 2018, and the resignation of Brian Baker from his position as chief financial officer and corporate secretary of Annidis effective February 2, 2018.

About Annidis Corporation

Annidis (TSX-V: RHA) has developed, manufactures and sells a patented imaging platform technology based on multi-spectral imaging. The current RHA is a retinal screening technology used by primary care professionals for early disease detection. The RHA is complementary to diagnostic imaging technologies and supports the timely identification, treatment and monitoring of a wide range of vision threatening diseases.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain statements in this press release are forward looking statements and are prospective in nature, including statements with respect to the prospect of the Corporation finding a solution to its current financial situation or finding a potential strategic partner or investor. Forward‐looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward‐looking statements. These statements generally can be identified by the use of forward‐looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Such forward‐looking statements should therefore be construed in light of such factors, and the Corporation is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

SOURCE Annidis Corporation