BMGB Capital Corp. ('BMGB' or the 'Company') (TSXV: BMGB.P), a capital pool company under policy 2.4 of the TSX Venture Exchange (the 'TSXV'), announces that, in furtherance to its press releases dated February 25, 2019 and October 1, 2019, the letter of intent (the 'LOI') between BMBG, Hot Tomali Communications Inc. ('Hot Tomali'), and Cientis Technologies Inc. to negotiate and complete a proposed qualifying transaction has been terminated in accordance with the provisions of the LOI and the transaction contemplated therein will not proceed.

In connection with the LOI, BMBG advanced a loan to Hot Tomali in the aggregate amount of CDN$51,478.58 (including interest at 5% per annum) (the 'Loan'). The Loan is secured against the assets of Hot Tomali pursuant to a secured promissory note and a loan and security agreement (the 'Loan Documents'). Under the terms of the Loan Documents the Loan was payable on December 31, 2019 or within 60 days of termination of the LOI. Hot Tomali has repaid the full amount of the Loan and accumulated interest and BMBG no longer has a security interest over the assets of Hot Tomali. The Company will continue to evaluate other acquisition opportunities with a view to completing a Qualifying Transaction in accordance with the policies of the TSXV.

About BMGB

BMGB is a capital pool company in accordance with Exchange Policy 2.4 and its principal business is the identification and evaluation of assets or businesses with a view to completing a Qualifying Transaction.

Contact:

Tel: (778) 549-6714

Cautionary Statements and Note Regarding Forward-Looking Information

Certain statements contained in this news release constitute 'forward looking information' as such term is defined in applicable Canadian securities legislation. The words 'may', 'would', 'could', 'should', potential', 'will', 'seek', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' and similar expressions as they relate to the Company, including the Company's goal of completing a Qualifying Transaction, are intended to identify forward looking information. All statements other than statements of historical fact may be forward looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: receipt of applicable director, shareholder and regulatory approval of a Qualifying Transaction; changes in law; the ability to implement business strategies and pursue business opportunities; state of the capital markets; the availability of funds and resources to pursue operations; as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward looking information. The forward looking information included in this news release is made as of the date of this news release and the Company undertakes no obligation to publicly update or revise any forward looking information, other than as required by applicable law.

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