Two Hands Corporation Provides Update on Amendments to Note Settlement Agreements

• Share Cancellation Completion: The company has finalized the cancellation of 77,627,224 common shares previously issued in error under note settlement agreements. This corrects a capital structure issue where shares were issued below the Canadian Securities Exchange (CSE) minimum price threshold.
• Debt Repayment Strategy: Two Hands Corporation confirmed it will repay all outstanding convertible promissory notes held by Vanquish Funding Group Inc. entirely in cash, totaling approximately $309,350 in principal across three notes dated late 2025/early 2026.
• No Further Dilution: The company explicitly stated that no further shares will be issued pursuant to these specific convertible promissory notes, removing a potential overhang of future equity dilution associated with these instruments.
• Historical Context: This follows the February 12, 2026 announcement where debt was initially slated for conversion into shares (amended to meet CSE minimums). The shift to cash repayment represents a deviation from the previous plan announced in early Q1 2026.

• Capital Structure Cleanup: The cancellation of erroneous shares is positive for existing shareholders as it restores integrity to the share count, but this was anticipated following the February authorization announcement. It does not create new value, only corrects past errors.
• Debt Removal vs. Dilution: Paying off $309k in debt with cash instead of issuing equity prevents dilution. However, given the company's market cap is effectively negligible (price at $0.00), this amount is immaterial to overall valuation but significant for balance sheet cleanliness.
• Liquidity Concerns: The ability to repay debt in cash suggests some liquidity exists, yet the stock price remains flat at $0.00 throughout May 2026. This discrepancy raises questions about whether the cash repayment comes from a specific settlement source rather than operational revenue.
• Strategic Pivot Continuity: The news supports the broader narrative of cleaning up the balance sheet to facilitate the pivot to AI and Quantum Computing (announced in Feb-May 2026). However, no new revenue-generating milestones were attached to this debt cleanup.
• Risk Aversion View: As a risk-averse analyst, I view this as routine housekeeping rather than a fundamental business improvement. The company remains a speculative shell with no proven revenue stream from its AI/Quantum initiatives despite multiple announcements (EntangleX, ON GRAPH).

• Core Business: Historically a food industry company, currently pivoting toward Artificial Intelligence (AI) software, digital assets, and quantum computing.
• Flagship Projects:
  • EntangleX: A browser-based quantum computing engine launched May 2026 to allow non-specialists to construct quantum circuits.
  • ON GRAPH: An AI character-creation platform acquired for $500k working capital investment, targeting WhatsApp/Telegram integration in India and Southeast Asia (announced Feb 2026).
  • VectorMax Partnership: Exclusive Asian Channel Partner agreement for IPTV software (Feb 2026), generating revenue share on carrier contracts.
• Management: Emil Assentato (CEO) leads the strategic pivot; Ujjwal Roy (Head of Strategy) oversees AI and Quantum initiatives.