Mr. Mayco Quiroz reports

TENET SIGNS AGREEMENT TO SELL ITS STAKE IN CHINESE FINANCIAL SERVICES SUBSIDIARY FOR CAD $10.2M

Tenet Fintech Group Inc. has reached an agreement with two of the directors of the company's Asia Synergy Financial Capital (ASFC) subsidiary to sell them the company's 51-per-cent ownership stake in ASFC for the amount of $10.2-million.

As disclosed in the company's MD&A (management's discussion and analysis) and financial statements, Tenet owns 51 per cent of ASFC's shares through nominee shareholder agreements. The two directors of ASFC, along with a company they control, are technically the registered holders of Tenet's ASFC shares, but the nominee shareholder agreements between Tenet and the nominee shareholders stipulate that they hold the shares on behalf of Tenet and that Tenet is entitled to all the benefits associated with the shares. This ownership structure, which was implemented at the creation of ASFC on the advice of the company's Chinese counsel, was meant to simplify the eventual sale of Tenet's ownership in ASFC to a Chinese entity or to Chinese nationals, which has now materialized with today's announced transaction.

According to the terms of the agreement between the parties, the ASFC directors have up to six months from the date of the signing of the agreement to complete the total payment amount of $10.2-million due to the company, failing which ownership of the shares will revert back to the company.

The sale of ASFC is consistent with Tenet's previously announced plans to focus and limit its Chinese operations on gathering SME data and facilitating supply-chain related transactions through the company's Cubeler Business Hub and GoldRiver platforms. In addition to divesting the company's interests in the Chinese commercial lending space, the sale of ASFC should make a significant contribution to the company's cash position and give it more operating flexibility in both China and North America.

No commission or finders' fees were paid in relation to the transaction. The company plans to use the proceeds of the transaction to expand its ability to gather SME data in China, other parts of Asia and North America to bolster its upcoming economic intelligence offerings; to continue to expand its supply-chain related services; and for general working capital purposes.

New Tenet and Tenoris3 websites

The company also announced the launch of its new corporate website to better reflect the company's positioning as a data aggregator and the role that data plays in helping facilitate all the company's offerings, including its supply-chain service offerings. The new Tenet corporate website also links to the company's new Tenoris3 website, which now better explains the vision behind the company's data derived product offerings. The company invites its shareholders to visit its new websites to gain a better understanding of the company's business model and the vision driving its operations.

About Tenet Fintech Group Inc.

Tenet Fintech Group is the parent company of a group of innovative financial technology (fintech) and artificial intelligence companies.

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