GK Resources completes Syntholene Energy RTO

Executive Summary

• Syntholene Energy Corp. completed a reverse takeover of Pre‑transaction Syntholene, resulting in a name change, share consolidation (5 : 1) and new TSX‑V ticker “ESAF”.
• The transaction issued ~53.5 M post‑consolidation shares at a deemed price of $0.375 per share, 890,100 warrants (exercise $0.001685), and assumed a $180,000 convertible note (12.5% interest, conversion $0.30).
• Post‑closing, ~68.95 M post‑consolidation shares are outstanding; key insiders (Sutton, Bryan, Kutsch) each hold ~17–23% of the equity on a partially diluted basis.

Key Details

• Share Consolidation: 5 pre‑consolidation common shares → 1 post‑consolidation share; fractional shares rounded per TSX‑V rules.
• New Identifiers: CUSIP 87170K106, ISIN CA87170K1066.
• Equity Issuance – Securities Exchange Agreement
• 53,511,804 post‑consolidation shares issued at $0.375 per share.
• 890,100 share purchase warrants (exercise price $0.001685) exercisable until 18 Jun 2026.
• Up to 10.75 M additional shares issuable upon achievement of business milestones.
• Convertible Note: $180,000 principal, maturity 30 Mar 2027, simple interest 12.5% p.a., convertible at $0.30 per share.
• Amalgamation (Nov 18 2025):
• Acquired FinCo via three‑cornered amalgamation; issued 9,303,700 post‑consolidation shares at $0.375 per share to former FinCo shareholders (exchange ratio 1:5).
• Corporate finance fee of 83,333 shares to Canaccord Genuity Corp.; 151,886 non‑transferable broker warrants (exercise $0.375) until 9 Dec 2027.
• Additional 350,000 shares issued to an arm’s‑length finder at $0.375 per share.
• Equity Incentive Grants:
• 6,195,700 stock options, 1.5 M performance share units (PSUs), 5.025 M restricted share units (RSUs) granted to directors/officers; subject to shareholder approval and vesting conditions.
• Escrow Arrangement: 35.604 M shares, 110 k options, 500 k PSUs, 600 k RSUs, up to 7.160 265 deferred‑consideration shares placed in Tier 2 escrow with release schedule per TSX‑V policy.
• Seed Share Resale Restrictions: 11.868 M shares subject to 20% release at final bulletin and subsequent quarterly releases over 12 months.
• Post‑Closing Capital Structure: Approximately 68,949,286 post‑consolidation shares issued and outstanding.

Insider Holdings (post‑closing, partially diluted)

Insider	Shares	Options	PSUs/RSUs	% of Outstanding (non‑diluted)	% (partially diluted)
Dan Sutton	11.868 M	933.5 k	375 k PSUs	~17.21%	~18.95%
Alexander Bryan	11.868 M	543.4 k	125 k PSUs	~17.21%	~18.20%
John Kutsch	15.583 467 M	543.4 k	100 k RSUs	~22.60%	~22.77%

All three insiders may receive up to 2.386 M deferred‑consideration shares upon satisfaction of agreed milestones.

Board & Management (effective immediately)

• Board: Dan Sutton, Alexander Canon Bryan, John Kutsch, Anna Pagliaro, Steve Oldham.
• Management: Dan Sutton – CEO; Grant Tanaka – CFO; Alexander Bryan – Chief Development Officer; John Kutsch – Chief Engineer; Jennifer Hanson – Corporate Secretary.

Investor Relations & Marketing Agreements (post‑closing)

• Kin Communications: $15 k monthly fee + per‑day event fees; 500 k options granted (exercise $0.375) until 9 Dec 2028.
• SmallCap Communications: $300 k total payable in two instalments ($150 k at closing, $150 k on 8 Jan 2026).
• Milestone Capital Partners: €260 k fee; 500 k options (exercise $0.375) until 9 Dec 2028.
• Generation IACP Inc.: $8.5 k monthly trading‑service fee, increasing 3% annually; term to 9 May 2026 with automatic six‑month renewals.

Use of Proceeds

• Portion of financing proceeds earmarked for investor‑relations, marketing and communications expenses associated with the reverse takeover and ongoing corporate visibility.

Notable Quotes

“This milestone is important and impactful for Syntholene and the broader e‑fuels sector… Being the first publicly traded pure play synthetic fuel company on any exchange worldwide sets up Syntholene to build value with shareholders from day one of this new era…” – Dan Sutton, CEO.