Enssolutions Group Inc. announced that it has received written notice of default from Hermelin Bridge, LLC,(Hermelin), following the expiry of a grace period, for failure to repay its short term secured loan pursuant to which Hermelin advanced to the Company USD 100,000 at an interest rate of 12% per annum (the Bridge Loan). The maturity date of the Bridge Loan was August 28, 2018. The Bridge Loan was secured by a general security agreement over the assets of the Company and its subsidiaries. As the Company was not able to repay the Bridge Loan when required, Hermelin is currently taking steps to enforce its security and take title to the assets of the Company and its subsidiaries. The Company and Hermelin are concurrently negotiating a lease-back arrangement whereby Hermelin will lease to the Company the assets used in the business for USD 5,000 per month for a period of approximately three months (the Lease Term). The lease-back arrangement may also include an option for Enssolutions Ltd., the wholly-owned subsidiary of the Company, to re-purchase the assets of the Company located in Canada (the Purchase Option) on terms to be agreed upon. The Company hopes the short-term lease back arrangement may afford the Company additional time to attempt to seek additional financing. If the Company is not able to source additional financing, it will likely not be able to exercise the Purchase Option in which case the Company expects to use the time afforded by the Lease Term to wind up its business operations.