Stickit Technologies signs LOI with Capitalink

Executive Summary

• Stickit Technologies Inc. entered a non‑binding Letter of Intent with Capitalink Ltd. to execute a share consolidation (10‑for‑1) and a concurrent private placement of $0.7 M–$1.05 M.
• The consolidation will reduce outstanding common shares from 127,547,356 to approximately 12,754,736; fractional shares will be cancelled and stock options adjusted on the same ratio.
• The private placement will sell units (one share + one warrant) at a 25% discount to the CSE trading price, with warrants exercisable for three years; proceeds are earmarked for working capital.

Key Details

• Share Consolidation:
• Ratio: 10 existing shares → 1 new share.
• Post‑consolidation shares outstanding: ~12,754,736 (rounded down).
• Fractional shares cancelled; stock options adjusted proportionally.
• Board has authority to approve via directors’ resolution; no shareholder vote planned.

• Subject to Canadian Securities Exchange (CSE) approval; record date and effective trading date to be announced later.

• Director Changes:

• As part of the LOI, Capitalink will acquire rights to amounts owed to Eli Ben‑Harosh and Asher Holzer (directors).

• Upon completion, Asher Holzer is expected to resign as a director.

• Private Placement Terms:

• Size: Minimum $700,000; maximum $1.05 million.
• Pricing: 25% discount to the CSE quoted trading price of Stickit shares (subject to CSE pricing policies).
• Unit composition: 1 common share + 1 common‑share purchase warrant.
• Warrant terms: Exercisable for three years from issuance at market price; each warrant converts into one additional common share upon payment of the market price.
• Finders’ fee payable in cash and securities to Capitalink per CSE regulations.
• Securities subject to a four‑month hold period.

• Use of proceeds: Added to working capital to further Stickit’s business operations.

• Regulatory Conditions:

• Both the consolidation and private placement require CSE approval.
• The company will issue a subsequent news release with the record date for the consolidation and the effective post‑consolidation trading date.

Notable Quotes

(No direct quotes were provided in the release.)