Prospect Prediction Markets Announces Exercise of All Outstanding Warrants

Executive Summary

• Prospect Markets announced the full exercise of all 7,321,679 outstanding warrants issued in June and July 2024, generating $976,055 in aggregate gross proceeds.
• The company appointed CAN Partners LLP as its new auditor, effective June 29, 2026, replacing SRCO Professional Corporation, with no reservations or modified opinions from the former auditor.
• The board granted 200,000 performance share units (PSUs) to a director under the Omnibus Equity Incentive Plan, subject to performance milestones and TSX Venture Exchange approval.

Key Details

• Warrant Exercise:
  • Total warrants exercised: 7,321,679.
  • Aggregate gross proceeds: $976,055.
  • Exercise period end: 5:00 PM MST, June 26, 2026.
  • Status: No warrants (including broker warrants) remain outstanding.
  • Use of Proceeds: General corporate and working capital purposes.
• Auditor Change:
  • Resigning Auditor: SRCO Professional Corporation (effective June 29, 2026).
  • Successor Auditor: CAN Partners LLP (holds office until the close of the next annual meeting).
  • Compliance: No reservations or modified opinions in SRCO's audit reports; no reportable events under National Instrument 51-102.
• Equity Incentive Grant:
  • Instrument: 200,000 Performance Share Units (PSUs).
  • Recipient: A director (insider).
  • Vesting Conditions: Subject to achievement of a performance milestone and continued service; vests on the first anniversary of the grant date.
  • Forfeiture: Full forfeiture if the performance milestone is not achieved.
  • Regulatory Status: Related party transaction under MI 61-101; relies on exemptions in Sections 5.5(a) and 5.7(1)(a) as value does not exceed 25% of market capitalization.
  • Approval: Subject to TSX Venture Exchange approval.

Notable Quotes

• "We are pleased to report the full exercise of all our outstanding warrants... This reflects the continued confidence of our shareholders and meaningfully strengthens our balance sheet as we execute on our strategic roadmap and deliver a platform that redefines how sports fans engage with the games they love." — Johnny Chen, Founder and Chief Executive Officer