Intellistake to cease food business operations Dec. 19

Executive Summary

• Intellistake Technologies Corp. received $2.17 million in proceeds from warrant exercises since October 2025, including $114,400 from CEO Jason Dussault, to fund AI initiatives, digital currency acquisitions, and general corporate purposes.
• The company has elected to cease operations of its legacy food business, with manufacturing ending December 19, 2025, and all employees terminated except for two caretakers.
• The company is evaluating the sale of food business equipment and intellectual property and plans to place the facility on care and maintenance while focusing on its core AI and blockchain operations.

Key Details

• Warrant Exercise Proceeds: Total of $2,171,714 received since October 2025.
• Insider Participation: $114,400 of the proceeds came from the exercise of warrants by CEO Jason Dussault.
• Use of Proceeds: Funds will be used for acquisitions of digital currencies, research and development, marketing, repayment of existing accounts payable, investor relations expenditures, working capital requirements, and other general corporate purposes.
• Food Business Divestiture: The company has ceased operations of its legacy food business (manufacturing and distributing gluten-free and allergen-free products).
• Valuation Process: An independent valuation adviser was retained; the internal valuation was completed and evaluated by the board of directors as part of the divestiture process.
• Operational Cessation: The last day of manufacturing activity is December 19, 2025.
• Staffing Changes: All employees associated with the food business have been terminated, except for two caretaker employees.
• Asset Disposition: The company plans to produce and distribute remaining inventory, preserve the facility on care and maintenance, and evaluate the sale of equipment and intellectual property (including trademarks and trade secret recipes), along with a sublease of the facility.
• Strategic Focus: The divestiture allows the company to focus on core AI software solutions, validator operations, tokenization, and custodial digital asset management.
• Additional Developments: The company has added members to its advisory board and is collaborating with Orbit AI, while also evaluating modular data centers.
• Materiality: The food business is stated to be not material to the company's present operations.

Notable Quotes

• "I want to thank our shareholders for their continued support. This additional investment underscores the confidence in what we believe is an exceptionally exciting sector with long-term potential. The additional steps taken in divesting our food business allows our team to focus more deeply on our core initiatives in AI [artificial intelligence] software solutions, validator operations, plans for tokenization and custodial digital asset management. With recent advisory board additions and the collaboration with Orbit AI, we are also evaluating modular data centres. The food business divestiture also meaningfully streamlines our operations by significant reducing the associated monthly expenses." — Jason Dussault, CEO