BlockchainK2 Closes Debt Settlement

Executive Summary

• BlockchainK2 Corp. closed a debt settlement, extinguishing $312,500 of outstanding indebtedness by issuing 4,464,286 common shares at $0.07 per share.
• The transaction includes a related‑party component (857,143 shares) and relies on MI 61‑101 exemptions; closing is pending TSX Venture Exchange approval.
• The settlement amount is slightly lower than the previously announced $340,000 target, reflecting a modest reduction in dilution for existing shareholders.

Key Details

• Debt extinguished: $312,500 (down from the originally contemplated $340,000).
• Shares issued: 4,464,286 common shares at $0.07 per share (“Debt Settlement Shares”).
• Related‑party portion: 857,143 of the Debt Settlement Shares are being issued to related parties of the Company.
• MI 61‑101 exemption: The company is relying on sections 5.5(a) and 5.7(1)(a) of MI 61‑101 because the fair market value of the shares does not exceed 25% of the company's market capitalization.
• Regulatory condition: Closing of the settlement is subject to approval by the TSX Venture Exchange.
• Previous announcement reference: September 15, 2025 press release had outlined a $340,000 settlement via 4,857,142 shares.

Notable Quotes

• Sergei Stetsenko, CEO: “The completion of this debt settlement reduces our outstanding obligations and positions the Company for continued growth while maintaining compliance with regulatory requirements.”