A privately held US buyer entered into a non-binding letter of intent to acquire Hypernetics division of Plaintree Systems Inc. on July 26, 2019. The consideration will be paid in cash. Hypernetics generated revenues of CAD 4.7 million and loss on sale of operations of CAD 1.98 million as of year ended March 31, 2019. The completion of transaction is subject to signing definitive agreement, receipt of all necessary regulatory and third-party consents, approval of the board of directors of each of Plaintree and the proposed purchaser to the final terms and shareholders of Plaintree approving of the transaction. Plaintree anticipates closing may take place in third quarter of 2019. A privately held US buyer cancelled the acquisition of Hypernetics division of Plaintree Systems Inc. on October 3, 2019.