Alset AI arranges $191,160 shares for debt deal

Executive Summary

• Alset AI Ventures Inc. entered into debt settlement agreements with arm's-length creditors to settle $191,160.37 in accrued fees by issuing 3,475,646 common shares at a deemed price of 5.5 cents per share.
• The company granted 5 million incentive stock options and 5.55 million restricted share units (RSUs) to directors, officers, and consultants under its omnibus incentive plan.
• The debt settlement is subject to TSX Venture Exchange approval, with specific share hold periods applied to the issued shares.

Key Details

• Debt Settlement Structure:
  • Aggregate debt settled: $191,160.37 (accrued and unpaid fees for consulting and additional services).
  • Shares issued: 3,475,646 common shares.
  • Deemed price per share: 5.5 cents.
  • Rationale: Preserve funds for operations and improve the balance sheet.
  • Regulatory Status: Subject to approval of the TSX Venture Exchange.
• Share Hold Periods:
  • Restricted shares: 2,833,647 common shares subject to a statutory four-month-and-one-day hold period.
  • Unrestricted shares: 641,999 common shares not subject to a restricted period.
• Incentive Compensation Grants:
  • Stock Options: 5,000,000 options granted to directors, officers, and consultants.
    • Exercise price: 5.5 cents per common share.
    • Term: Two years from the date of grant.
    • Vesting: Quarterly in equal parts over the first year from the date of grant.
  • Restricted Share Units (RSUs): 5,550,000 RSUs awarded.
    • Vesting: On the first anniversary from the date of award.
  • Plan Approval: The omnibus incentive plan was approved by shareholders at the annual and special meeting held on August 26, 2025.

Notable Quotes

• "The board and management of the company believe that the debt settlement transaction is in the best interests of the company because it allows the company to preserve its funds for operations and improve its balance sheet."