Cannyx Corporation Limited signed a non-binding Letter of Intent to acquire LevelBlox, Inc. (OTCPK:LVBX) for $1.6 million in a reverse merger transaction on June 26, 2020. Under the terms of the transaction, LevelBlox will issue to the shareholders of Cannyx Corporation Ltd approximately 170.64 million new common stock or 60% of the expanded share capital. After the transaction, Cannyx Corporation, Limited will operate as a wholly owned subsidiary of LevelBlox, Inc. If after a period of due diligence, all terms and conditions are agreed and conditions to closing are met, definitive agreements would be executed.

LevelBlox Board approved the signing of a non-binding Letter of Intent on June 26, 2020. The transaction is expected to be completed simultaneously with the completion of the private placement in the fourth quarter of 2020. The transaction could be dilutive to existing shareholders.