Frontier Wellness Management Inc. ("Frontier") entered into a letter of intent to acquire Efficacious Elk Capital Corp. (TSXV:EECC.P) ("EECC") in a reverse merger transaction on July 12, 2019. Under the terms, the shareholders of Frontier will receive one common share of EECC for every common share of Frontier currently held. EECC will issue an aggregate of 46.7 million post consolidation common shares as a part of the transaction. Prior to the completion of the proposed transaction, EECC will complete a share consolidation on a 1.7 to 1 basis. Frontier will complete an equity financing for minimum aggregate gross proceeds of CAD 3 million prior to closing of the transaction and concurrent with closing either Frontier, or EECC, or a combination of Frontier and EECC will complete a further equity financing totaling not less than CAD 6 million prior to or concurrent with the closing for minimum gross proceeds of CAD 3 million. Upon completion of the proposed transaction, the business of Frontier will become the business of combined entity. The combined entity will change its name to a name acceptable to Frontier, subject to approval by the applicable regulatory authorities. The parties have agreed that a CAD 0.10 million termination fee will be payable to EECC by Frontier provided Frontier terminates the LOI under certain conditions. The resulting issuer’s Board will comprise of John D. MacPhail, Edward T. L. Cheung, Joan de Haro Arjona, Eugene A. Hodgson, Rodney W. Reum and Robert Wilson. John MacPhail will be appointed as Chairman and Chief Executive Officer, Ed Duda as Chief Financial Officer, Carlos Florencio Bello Herrero as the Chief Operating Officer and David W. Smalley as Corporate Secretary of the combined entity. The transaction is subject to the satisfaction of customary conditions precedent including execution of a definitive agreement, Board approvals, all necessary approvals of the exchange and all other regulatory authorities and third parties to the proposed transaction, including the concurrent financing, being obtained, the approval or consent by shareholders of Frontier of the proposed transaction, which has been obtained to the extent applicable, Frontier completing the Rucal acquisition, EECC completing the name change and share consolidation, private placement and concurrent financing having been completed; parties have been satisfied with the results of their respective due diligence reviews in connection with the proposed transaction, Exchange conditionally accepting the common shares of the resulting issuer for listing, subject to the resulting issuer fulfilling the listing requirements of the exchange. Completion of the transaction is subject to majority of the minority shareholder approval of Efficacious Elk Capital and the transaction cannot close until the required shareholder approval is obtained. The shareholders of Frontier have approved the transaction. The transaction is expected to close prior to October 31, 2019.