PUDO issues statement regarding December 8 – 9, 2019 promotional activity

PUDO Inc. (“PUDO” or “the Company”) (CSE: PDO) (OCTQB: PDPTF), provides the following information about certain promotional activities at the request of OTC Markets.

On December 9, 2019, the Company was notified by OTC Markets that on December 8, 2019, certain materials promoting PUDO common stock were circulated via email by a third party. Copies of the promotional emails were forwarded to PUDO’s CFO by OTC Markets. The Company immediately confirmed to OTC Markets that it had no prior knowledge of this unauthorized promotional activity and had only been made aware of such activity pursuant to the OTC Markets notice. Upon receipt of the notice, the Company took immediate actions to investigate.

After due inquiry, the Company determined that the promotional emails were sent by pennystock101.com, which had been retained by ACN LLC. PUDO had no knowledge of or contracts with either company, but subsequently learned that JBN Partners hired ACN LLC to conduct promotional activities, without the knowledge of PUDO management or any PUDO employees.

PUDO had retained the market awareness services of JBN Partners in October 2019, and ensured that all planned activities to be conducted by JBN Partners would be in compliance with accepted stock promotion policies and regulations. The Company has full editorial control over content prepared by JBN Partners.

As part of the Company’s investigation following receipt of the December 9, 2019 notice from OTC Markets, the Company learned that at some time between December 2, 2019 and December 6, 2019, JBN Partners engaged in a verbal conversation with a non-controlling PUDO shareholder, and that conversation led JBN Partners electing to deploy the remaining account balance previously paid to JBN Partners by PUDO to a third-party newsletter writer.

The Company, its officers and employees were in no way directly or indirectly involved in the creation, distribution, or payment for the unauthorized promotional materials created and distributed by pennystock101.com, nor did the Company exercise or provide any editorial control over the content of such promotional material.

The statements made by pennystock101.com were not materially false or misleading and were based on previously released Company news and other previously disclosed public information.

On December 9, 2019, PUDO stock traded at a volume of approximately twenty four thousand (24,000) shares on the OTC, with the stock price rising to a high of $0.59 USD, followed by a low on December 10, 2019 of $0.51 USD. These prices were within the stock’s normal trading ranges.

The Company, its managers, officers, directors and employees were not involved with the creation, distribution or payment for the services of ACN LLC or pennystock101.com.  The Company and certain members of management were aware that JBN Partners had been engaged to help raise general awareness of the Company, but none had any knowledge that JBN Partners hired and provided payment to ACN LLC or pennystock101.com.

PUDO confirms that no managers, officers, directors, employees or third-party service providers sold Company stock at any time within the past 90 days. The non-controlling shareholder who had the conversation with JBN Partners about the newsletter initiative, was unaware of the circulated promotional material and similarly did not sell any PUDO shares during such 90 day period.

In November 2019, the Company issued 2,048,888 shares as part of a private placement, for aggregate proceeds of $922,000 at an issuance price of $0.45 CAD per share. Directors and affiliates of directors of the Company purchased 1,959,999 shares as part of such private placement. In November 2018, the Company, pursuant to another private placement, issued three convertible securities for aggregate proceeds of $500,000 CAD. Such convertible securities were issued to RHC Spitfire Corporation, GCC Ferrari Corporation, and Cardinal Couriers. The instruments are convertible at any time until November 2020, at a conversion price of $0.95 CAD.

Over the course of the previous 12 months, PUDO has retained the services of investment banking firms Panamax Capital LLC and Partner Capital Group LLC to support their efforts to raise expansion capital, and continued to engage the services of Consensus Communications Inc., to help create content for Company news releases and investor materials.  JBN Partners was hired in October 2019 to provide market awareness services.