NxGen Communications Corp. entered into a non-binding letter of intent to acquire Imex Systems Inc. (TSXV:IMEX) in a reverse merger transaction on April 24, 2019. Pursuant to the transaction, approximately 34 million common shares of Imex Systems will be issued to the shareholders of NxGen Communications such that the shareholders of NxGen Communications will own at least 52% of the resulting issuer on the closing of the transaction while the current holders of the securities of Imex Systems will own, and have the right to acquire upon exercise of warrants and options, common shares representing approximately 24% of fully diluted common shares of the resulting issuer. The shares of the resulting issuer will be listed on the TSX Venture Exchange. In conjunction with the transaction, NxGen Communications will complete a brokered private placement of securities at price per offered security of CAD 0.25 for minimum gross proceeds of CAD 2.5 million and maximum gross proceeds of CAD 5 million or such other amount as the parties may agree. Prior to the closing of the private placement and the transaction, Imex Systems will complete a consolidation of its common shares on the basis of 2.5 to 3 pre-consolidated common shares for 1 post-consolidated common share. It is intended that the Board of Directors of the resulting issuer immediately following the closing of the transaction shall consist of 6 directors, comprising 2 Imex Systems’ directors, 2 NxGen Communications’ directors and 2 independent directors. The completion of the transaction is contingent on a number of conditions precedent including receipt of all requisite corporate, shareholder and regulatory approvals, completion of the private placement, the consolidation of shares of Imex Systems and the execution of a definitive agreement between the parties. The transaction is anticipated to close on or before July 31, 2019.