TORONTO, ON / ACCESSWIRE / March 8, 2019 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE) today announced that, further to its Press Release of January 30, 2019, it has closed its initial investment in Twenty49 Ltd ("Twenty49"), based in Waterloo, Ontario, and operating in the US through its wholly owned subsidiary. Twenty49 is a technology company, developing technology for 4 business units:

Data420, Fiscal420 and AI420 which focus on collecting information through proprietary hardware and software, and then packaging and selling data to all operational levels of the cannabis industry; and Fiscal420 which will provide US cities and townships with the ability to automate the collection of cannabis sales taxes from all companies selling cannabis in their jurisdictions.

The Company acquired 5,600,000 founder shares representing not less than 30.27% of the issued and outstanding shares of Twenty49 in consideration for the payment of $112,000. The Company was also issued an option to acquire 8,200,000 further shares of Twenty49 exercisable at $0.025 CDN per share, or $205,000 in total, on or before May 31, 2019 (the "Option"). A subsequent round of financing will be completed by Twenty49 on or before May 31, 2019 and if the Company chooses to exercise the Option, it will hold not less than 34.84% of the voting securities of Twenty49 Ltd. after giving effect to the subsequent round of financing.

The Company will enter into a Unanimous Shareholders Agreement ("USAgr") with the shareholders of Twenty49 pursuant to which ZTEST will have certain pre-emptive rights with respect to future offerings of Twenty49 securities, and a right of first refusal on any sales or other transfers of Twenty49 shares among existing Twenty49 shareholders, as well as representation on the board of Twenty49. The USAgr also contemplates that ZTEST's subsidiary, Permatech Electronics Corp., will have certain rights with respect to the manufacture of electronic hardware for Twenty49 and that Twenty49 will have the right to obtain a non-exclusive license, on commercially reasonable terms, to use the distributed ledger software developed by Conversance Inc., in connection with its business. Conversance is a Waterloo, Ontario based software company in which ZTEST currently holds a 25.29% equity interest.

Dave Hwang, Founder and CTO of Twenty49 commented that "our first order of business is to finalize Partnership Agreements with consulting companies in the US, that have been inundated with requests from their clients, for (i) Impact Reports on how to participate in the exploding cannabis/CBD market place, and/or (ii) Strategic Go to Market Plans. Members of our Twenty49 team have provided data insights for the hospitality industry to these consulting companies in the past. Now that the Founders of Twenty49 are focused on the cannabis/ CBD industry, the same industry contacts are once again reaching out for data insights."

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