Sparx Technology : Filing Statement

ECC VENTURES 3 CORP.

FILING STATEMENT

QUALIFYING TRANSACTION BY ECC VENTURES 3 CORP.

ACQUISITION OF

SPARX TECHNOLOGY INC.

March 11, 2022

All information contained in this Filing Statement with respect to Sparx Technology Inc. was supplied by Sparx Technology Inc. for inclusion herein.

Neither the TSX Venture Exchange nor any securities regulatory authority has in any way passed upon the merits of the Qualifying Transaction described in this Filing Statement.

TABLE OF CONTENTS
FORWARD-LOOKING INFORMATION...................................................................................................	1
GLOSSARY OF TERMS..............................................................................................................................	2
SUMMARY OF FILING STATEMENT....................................................................................................	11
THE COMPANIES ..........................................................................................................................................	11
PROPOSED DIRECTORS AND OFFICERS OF THE RESULTING ISSUER ............................................................	11
SUBSCRIPTION RECEIPT FINANCINGS .........................................................................................................	11
AMALGAMATION AGREEMENT ..............................................................................................................	12
INTERESTS OF INSIDERS, PROMOTERS AND CONTROL PERSONS..........................................................	13
ARM'S LENGTH PARTY TRANSACTION .......................................................................................................	14
SHAREHOLDER APPROVAL..................................................................................................................	14
AVAILABLE FUNDS AND PRINCIPAL PURPOSES...........................................................................................	14
SELECTED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION...........................................................	15
MARKET FOR SECURITIES AND MARKET PRICE ..........................................................................................	16
SPONSOR AND AGENT RELATIONSHIP.................................................................................................	16
CONFLICTS OF INTEREST .............................................................................................................................	16
INTEREST OF EXPERTS AND OTHERS ...........................................................................................................	16
RISK FACTORS .............................................................................................................................................	17
CONDITIONAL APPROVAL OF THE TSXV ....................................................................................................	18
RISK FACTORS .........................................................................................................................................	18
PART I - INFORMATION CONCERNING ECC VENTURES 3 CORP. ...............................................	30
CORPORATE STRUCTURE .....................................................................................................................	30
GENERAL DEVELOPMENT OF THE BUSINESS ..................................................................................	30
SELECTED FINANCIAL INFORMATION AND MANAGEMENT'S DISCUSSION AND
ANALYSIS .................................................................................................................................................	32
DESCRIPTION OF THE SECURITIES .....................................................................................................	33
PRIOR SALES ............................................................................................................................................	35
STOCK EXCHANGE PRICE .....................................................................................................................	36
ARM'S LENGTH TRANSACTIONS ........................................................................................................	36
CONDITIONAL LISTING APPROVAL ...................................................................................................	36
LEGAL PROCEEDINGS............................................................................................................................	36
AUDITOR, TRANSFER AGENT, AND REGISTRAR .............................................................................	36
MATERIAL CONTRACTS........................................................................................................................	36
PART II - INFORMATION CONCERNING SPARX ..............................................................................	38
CORPORATE STRUCTURE .....................................................................................................................	38
GENERAL DEVELOPMENT OF THE BUSINESS ...............................................................................................	38
NARRATIVE DESCRIPTION OF THE BUSINESS ..............................................................................................	42
SELECTED FINANCIAL INFORMATION AND MANAGEMENT'S DISCUSSION AND ANALYSIS........................	43
DESCRIPTION OF THE SECURITIES ...............................................................................................................	43
CONSOLIDATED CAPITALIZATION ...............................................................................................................	44
PRIOR SALES................................................................................................................................................	44
STOCK EXCHANGE PRICE ............................................................................................................................	45
EXECUTIVE COMPENSATION .......................................................................................................................	45
NON-ARM'S LENGTH PARTY TRANSACTIONS.............................................................................................	46
LEGAL PROCEEDINGS ..................................................................................................................................	46
MATERIAL CONTRACTS...............................................................................................................................	47
PART III - INFORMATION CONCERNING THE RESULTING ISSUER ............................................	48
NAME AND INCORPORATION .......................................................................................................................	48
INTERCORPORATE RELATIONSHIPS .............................................................................................................	48
NARRATIVE DESCRIPTION OF THE BUSINESS ..............................................................................................	49

DESCRIPTION OF THE SECURITIES ...............................................................................................................	50
PRO FORMA CONSOLIDATED CAPITALIZATION...........................................................................................	51
AVAILABLE FUNDS AND PRINCIPAL PURPOSES...........................................................................................	53
PRINCIPAL SECURITYHOLDERS ...................................................................................................................	54
DIRECTORS AND OFFICERS OF THE RESULTING ISSUER ..............................................................................	55
PROMOTER CONSIDERATION .......................................................................................................................	59
CORPORATE CEASE TRADE ORDERS OR BANKRUPTCIES............................................................................	59
PENALTIES AND SANCTIONS........................................................................................................................	59
PERSONAL BANKRUPTCIES..........................................................................................................................	59
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ...........................	60
CONFLICTS OF INTEREST .............................................................................................................................	60
INDEBTEDNESS OF DIRECTORS AND OFFICERS............................................................................................	60
AUDIT COMMITTEE......................................................................................................................................	60
CORPORATE GOVERNANCE .........................................................................................................................	60
OTHER REPORTING ISSUER EXPERIENCE ....................................................................................................	60
PROPOSED EXECUTIVE COMPENSATION .....................................................................................................	61
ESCROWED SECURITIES...............................................................................................................................	65
AUDITORS ....................................................................................................................................................	68
TRANSFER AGENT AND REGISTRAR ............................................................................................................	68
PART IV - GENERAL MATTERS ...........................................................................................................	69
SPONSOR AND AGENT RELATIONSHIP.................................................................................................	69
EXPERTS ......................................................................................................................................................	69
OTHER MATERIAL FACTS............................................................................................................................	69
APPROVAL OF THE BOARD OF DIRECTORS ..................................................................................................	69

APPENDIX A FINANCIAL STATEMENTS OF ECC VENTURES 3 CORP. APPENDIX B FINANCIAL STATEMENTS OF SPARX TECHNOLOGY INC.

APPENDIX C PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS OF THE RESULTING ISSUER APPENDIX D MANAGEMENT'S DISCUSSION AND ANALYSIS OF ECC VENTURES 3 CORP. APPENDIX E MANAGEMENT'S DISCUSSION AND ANALYSIS OF SPARX TECHNOLOGY INC. APPENDIX F

APPENDIX G

CORPORATE GOVERNANCE DISCLOSURE

APPENDIX H CERTIFICATE OF ECC VENTURES 3 CORP.

APPENDIX I CERTIFICATE OF SPARX TECHNOLOGY INC. APPENDIX J ACKNOWLEDGEMENT - PERSONAL INFORMATION

1

FORWARD-LOOKING INFORMATION

This Filing Statement contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "estimates", "intends", "anticipates", "does not anticipate", or "believes", or variations of such words and phrases or states that certain actions, events or results "may", "could", "would", "might" or "will" be taken to occur or be achieved.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ECC3, Sparx or the Resulting Issuer to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Although ECC3 has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Known and unknown factors could cause actual results or events to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, delays due to the COVID- 19 global pandemic; fluctuations in the currency markets; changes in interest rates; delays in obtaining further financing; inflationary pressures; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada or the United States, or other countries in which the Resulting Issuer may, upon completion of the Transaction, carry on business; business opportunities that may be presented to, or pursued by the Resulting Issuer upon completion of the Transaction; growth of the Resulting Issuer's customer base; dependence on suppliers and third party owned communications networks; the Resulting Issuer's ability to successfully integrate acquisitions; operating or technical difficulties in connection with business activities; the possibility of cost overruns or unanticipated expenses; employee relations; the risks of obtaining and renewing necessary licenses and permits; cyber-security risks; changes in public opinions and consumer preferences; intellectual property related risks; and the occurrence of natural disasters, hostilities, acts of war or terrorism. The factors identified above are not intended to represent a complete list of the factors that could affect ECC3, Sparx or the Resulting Issuer. Additional factors are noted under the heading "Risk Factors".

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievement may vary materially from those expressed or implied by the forward-looking information contained in this Filing Statement. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date of this Filing Statement. All subsequent forward-looking information attributable to ECC3, Sparx or the Resulting Issuer herein is expressly qualified in its entirety by the cautionary statements contained in or referred to herein. ECC3, Sparx and the Resulting Issuer do not undertake any obligation to release publicly any revisions to this forward-looking information to reflect events or circumstances that occur after the date of this Filing Statement or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

2

GLOSSARY OF TERMS

The following is a glossary of certain definitions used in this Filing Statement. Terms and abbreviations used in the financial statements of ECC3, Sparx, and the Resulting Issuer in the appendices to this Filing Statement are defined separately and the terms and abbreviations defined below are not used therein, except where otherwise indicated. Words importing the singular, where the context requires, include the plural and vice versa and words importing any gender include all genders.

"Affiliate"	a company is an "Affiliate" of another company if (a) one of them is the subsidiary
	of the other, or (b) each of them is controlled by the same Person. A company is
	"controlled" by a Person if (a) voting securities of the company are held, other than
	by way of security only, by or for the benefit of that Person, and (b) the voting
	securities, if voted, entitle the Person to elect a majority of the directors of the
	company. A Person beneficially owns securities that are beneficially owned by (a)
	a company controlled by that Person, or (b) an Affiliate of that Person or an Affiliate
	of any company controlled by that Person.
"Amalco"	means the CBCA company formed pursuant to the Amalgamation, which will be a
	wholly owned subsidiary of the Resulting Issuer.
"Amalgamation"	means the amalgamation of Subco and Sparx under Section 181 of the CBCA.
"Amalgamation	means the amalgamation agreement dated December 2, 2021 among ECC3, Subco
Agreement"	and Sparx.
"Arm's Length	means a transaction which is not a Related Party Transaction.
Transaction"
"Associate"	when used to indicate a relationship with a Person, means (a) an issuer of which the
	Person beneficially owns or controls, directly or indirectly, voting securities
	entitling him to more than 10% of the voting rights attached to all outstanding voting
	securities of the issuer; (b) any partner of the Person; (c) any trust or estate in which
	the Person has a substantial beneficial interest or in respect of which the Person
	serves as trustee or in a similar capacity; (d) in the case of a Person who is an
	individual: (i) that Person's spouse or child, or (ii) any relative of that Person or of
	his spouse who has the same residence as that Person; but (e) where the TSXV
	determines that two Persons shall, or shall not, be deemed to be associates with
	respect to a Member firm, Member corporation or holding company of a Member
	corporation, then such determination shall be determinative of their relationships in
	the application of Rule D of the TSXV with respect to that Member firm, Member
	corporation or holding company.
"BCBCA"	means the Business Corporations Act (British Columbia), as from time to time
	amended or re-enacted and includes any regulations heretofore or hereafter made