Argo Corporation Closes $5.4 Million in Financing Arrangements

Executive Summary

• Argo Corporation closed on total financing of $5,445,383 comprising a non‑brokered private placement, a secured loan, and the exercise of outstanding common share purchase warrants.
• The private placement issued 3,750,000 common shares at $0.40 per share for $1.5 M; proceeds will be used for working capital and general corporate purposes.
• A $1.5 M secured loan bearing 12% interest was obtained from North American Bond Company, Limited, secured against company assets and repayable upon either 24 months or receipt of $10 M+ from future equity financings; the loan includes issuance of 2,062,500 non‑transferable warrants at an exercise price of $0.44 per share.

Key Details

• Total financing closed: $5,445,383.
• Private Placement (Offering):
• Lead underwriter: TheVentureCity.
• Shares issued: 3,750,000 common shares.
• Price per share: $0.40.
• Gross proceeds: $1,500,000.
• Use of proceeds: Working capital and general corporate purposes.
• Statutory hold period: Four months and one day from issuance date.
• Secured Loan:
• Lender: North American Bond Company, Limited.
• Principal amount: $1,500,000.
• Interest rate: 12% per annum.
• Security: Secured against Argo’s assets.
• Repayment trigger: Earlier of 24 months from issuance or receipt of ≥ $10 M aggregate gross proceeds from equity financings.
• Warrants issued with loan: 2,062,500 non‑transferable warrants, exercisable at $0.44 per share for 24 months.
• Warrant Exercise (Conversion of Debentures):
• Gross proceeds from warrant exercise: $2,445,383.
• Includes $1,768,200 contributed by co‑founders Praveen Arichandran and Qamar Qureshi.
• Total common shares issued via warrant exercise: 56,212,455.
• Net‑exercise feature added per amendment disclosed on February 4 2026.
• No finder’s fees were paid in connection with the loan or offering.
• All financing components are subject to final acceptance by the TSX Venture Exchange.

Notable Quotes

• Praveen Arichandran, CEO: “The successful closing of these financing arrangements provides us with the capital needed to advance our next‑generation transit solutions and support ongoing operational growth.”