ECC Diversified Inc.: ECC Diversified Announces Plan of Arrangement

VANCOUVER, BC / ACCESSWIRE / February 3, 2021 / ECC Diversified Inc. (the "Company" or "ECC Diversified"), announces that its Board of Directors has approved, in principle, a strategic reorganization of certain of the Company's assets pursuant to which the Company would spin out a portion of its interest in three of its wholly owned subsidiaries, Nota Bene Ventures Ltd. ("Nota Bene"), Inglenook Ventures Ltd. ("Inglenook"), and Mondavi Ventures Ltd. ("Mondavi"), to its shareholders. ECC Diversified will continue to hold equity interests in each of the subsidiaries, as well as its interest in its wholly-owned subsidiary, CoTerra Labs Inc., and certain equity investments it holds in several publicly traded companies.

It is proposed that the transaction will be carried out by way of statutory plan of arrangement (the "Spin-Out") pursuant to the Business Corporations Act (British Columbia). Under the terms of the Spin-Out, shareholders of ECC Diversified will receive one common share of each of Nota Bene, Inglenook and Mondavi, for every common share of ECC Diversified they hold as of February 5, 2021. There will be no change in the shareholders' holdings in ECC Diversified as a result of the Spin-Out. ECC Diversified holds 5,000,000 common shares in the capital of each of Nota Bene, Inglenook and Mondavi and will continue to do so following the Spin-Out.

The Spin-Out will be subject to the approval of ECC Diversified's shareholders which ECC Diversified intends to seek at an annual general and special meeting of shareholders (the "Shareholders' Meeting") to be held at Suite 1600 - 609 Granville Street, Vancouver, BC V7Y 1C3 on March 10, 2021 at 10:00 a.m. (Pacific Time). The Spin-Out requires the approval of the British Columbia Supreme Court.

Further details of the Spin-Out will be announced in the near future. Shareholders are cautioned that there is no certainty that the Spin-Out will be completed on the terms currently proposed or at all.

For more information please contact the Company at 778-331-8505 or email: [e-mail].

On Behalf of the Board of Directors of ECC Diversified Inc.

Scott Ackerman
Director

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results ordevelopments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.

SOURCE: ECC Diversified Inc.

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