Avila Energy closes rights offering

• Avila Energy Corp. closed a fully subscribed rights offering on May 25, 2026, raising gross proceeds of $430,724.34.
• The offering consisted of 57,429,912 units sold at $0.0075 per unit, each comprising one common share and one warrant.
• Proceeds are designated for paying creditors under an amended bankruptcy proposal, repairing natural gas and oil equipment to restore production (16 wells), and general working capital.
• AI Artificial Intelligence Ventures Inc. filed an early warning disclosure indicating beneficial ownership increased to approximately 9.53% of common shares outstanding following the offering.
• The company is executing a "Shares-for-Debt Transaction" under the Bankruptcy and Insolvency Act (BIA) at a deemed price of five cents per share, resulting in material dilution to existing shareholders.
• Directors and officers subscribed for 604,300 units directly/indirectly, exempt from certain valuation requirements.

• The closing of the rights offering is expected news following the April 20 announcement and May 22 oversubscription confirmation; therefore, it lacks surprise factor required for a "Material - Positive" rating.
• While the cash infusion prevents immediate default, the context remains distressed due to the active BIA proposal filed in November 2025.
• The share-for-debt transaction at $0.05 per share represents significant dilution relative to the current market price of $0.01, negatively impacting existing shareholder value despite the operational cash relief.
• AI Artificial Intelligence Ventures Inc.'s stake increase to ~9.53% is notable for a micro-cap but does not constitute a strategic rescue investment by a major industry player (e.g., Sprott, Lundin) that would qualify as a Game Changer.
• The financing closes the immediate liquidity gap but does not resolve the underlying solvency issues implied by the bankruptcy restructuring.

• Company: Avila Energy Corp. (CSE: VIK).
• Flagship Project: Donalda field, located southwest of Edmonton, Alberta.
• Operations: Focus on natural gas processing equipment repair and reactivation of 16 wells, plus two oil well repairs to restore production.
• Jurisdiction Change: Legal jurisdiction moved from Alberta to British Columbia effective February 13, 2026.
• Transcript Discrepancy Note: The provided transcript context references "Viking Cruises" (Revenue $1.06B, CEO Leah Talactac) which is unrelated to Avila Energy. This data has been excluded from financial analysis as it pertains to a different entity entirely.