Winchester Equity enters loan note for up to $2M (U.S.)

Mr. Mark Pajak reports WINCHESTER EQUITY CORPORATION ANNOUNCES NEW LOAN AGREEMENT Further to Winchester Equity Corp.'s press release dated Sept. 23, 2025, that it has today entered into a new secured convertible promissory note with Selma House LLC. Background As previously disclosed, the company made a $1-million (U.S.) loan to Selma, an arm's-length company in the business of real estate investment and private credit, for an aggregate amount of up to $1-million (U.S.) which was due to become due and payable on July 24, 2026. Following positive discussions with the management of Selma, WEC has agreed to increase the size of the loan facility to Selma to an amount of up to $2-million (U.S.) which will replace the previous $1-million (U.S.) promissory note which has now been cancelled. The company accordingly confirms that is has today entered into a secured convertible promissory note of up to $2-million (U.S.) with Selma which is due to become due and payable on Oct. 2, 2026. The principal amount under the promissory note bears an interest rate of 10 per cent per annum, calculated monthly. The promissory note is secured against all assets of Selma (which consist primarily of real estate assets and receivables) and represents the sole senior secured debt of such company. The company has the right to convert, at any time, the outstanding principal amount of the promissory note into a 47.2-per-cent ownership interest in Selma. As of today's date, Selma has drawn down a total of $1-million (U.S.) in principal against the promissory note. We seek Safe Harbor.