Argo closes $1.5M loan, extends private placement

Executive Summary

• Argo Corp. has closed a $1.5 million secured loan with North American Bond Company Ltd. and extended/closed a non-brokered private placement offering of up to 21.25 million common shares at $0.40 per share, targeting up to $8.5 million in gross proceeds.
• The debt financing includes a 12% annual interest rate, a two-year maturity, and a first-ranking general security agreement, accompanied by 2,062,500 non-transferable warrants exercisable at $0.44.
• The company received conditional TSX Venture approval to add a cashless net exercise feature to nearly 59 million existing warrants and may close additional tranches of the private placement by February 9, 2026.

Key Details

• Debt Financing: Closed $1.5 million secured loan with North American Bond Company Ltd.
• Loan Terms: 12% interest per annum, 2-year maturity from closing date, secured by a first-ranking general security agreement.
• Loan Warrants: Issued 2,062,500 non-transferable common share purchase warrants to the lender, exercisable at $0.44 per share, expiring on the loan maturity date.
• Private Placement: Non-brokered offering of up to 21.25 million common shares at $0.40 per share for gross proceeds of up to $8.5 million.
• Offering Timeline: Further closings expected by Feb. 9, 2026; company may close in one or more additional tranches at its discretion.
• Share Restrictions: Statutory hold period of 4 months and 1 day from issuance per Canadian securities laws.
• Warrant Amendment: Conditional TSX Venture approval received to add a cashless net exercise feature to 58,939,998 common share purchase warrants issued from the Aug. 20, 2025 debenture conversion; no other warrant terms amended.
• Regulatory Status: Loan, private placement, and warrant amendment are each subject to final acceptance by the TSX Venture Exchange.