Defi Tech clarifies share issues, director exits

Executive Summary

• Defi Technologies Inc. issued a clarifying update regarding share ownership and depository imbalances, a matter originally disclosed in August 2025 and requested by the Ontario Securities Commission (OSC) staff.
• The company engaged Shareholder Intelligence Services LLC (ShareIntel) to analyze trading irregularities, identifying persistent discrepancies between share positions reported by broker-dealers to intermediaries of the DTC, CDS, and Broadridge.
• The company announced the immediate resignation of director Stefan Hascoet, effective immediately, while stating that the identified imbalances did not impact the voting results at the 2025 shareholder meeting.

Key Details

• Regulatory Context: The release was issued in response to a staff review by the Ontario Securities Commission regarding the company's August 12, 2025, news release.
• Share Ownership Analysis:
  • The company retained Shareholder Intelligence Services LLC (ShareIntel) in June 2025 to provide data on share ownership, purchases, sales, and custody.
  • Point-in-time reports dated June 23, June 30, and July 15, 2025, indicated persistent differences in share positions reported by certain broker-dealers.
  • Two additional reports received after the August release showed continued imbalances in both the United States and Canada.
• Investigation and Reconciliation:
  • The company contacted 14 broker-dealers with the highest levels of imbalances to request reconciliations.
  • Five responses have been received; discrepancies are primarily attributed to settlement timing differences, inconsistent reporting to intermediaries, securities lending, and currency holding differences.
  • The company continues to await responses from remaining broker-dealers and may issue further inquiries.
• Impact on Governance: Based on current information, the company believes the share ownership imbalances had no impact on the voting results at the 2025 shareholder meeting, citing the quantum of imbalances and the quorum at the meeting.
• Director Resignation: Stefan Hascoet resigned from the board of directors effective immediately. He served as a director since June 2023.

Notable Quotes

• "At this time, based on information received and reviewed to date, the company does not believe that share ownership imbalances had any impact on the voting results at the 2025 shareholder meeting of the company given the quantum of imbalances identified and quorum at such meeting."