PRINCIPAL TECHNOLOGIES CLOSES PRIVATE PLACEMENT FINANCING

Executive Summary

• Principal Technologies Inc. closed a non‑brokered private placement of 4,000,000 common shares at $0.30 per share, raising $1,200,000 in gross proceeds.
• Proceeds are earmarked for general working capital purposes and the offering remains subject to final acceptance by the TSX Venture Exchange.
• A related‑party insider purchased 1,000,000 of the shares; the transaction qualified for exemptions under MI 61‑101 because it did not exceed 25% of market capitalization.

Key Details

• Offering Size: 4,000,000 common shares issued.
• Price per Share: $0.30 CAD.
• Gross Proceeds: $1,200,000 CAD.
• Use of Proceeds: General working capital.
• Statutory Hold Period: Shares subject to a hold until April 16 2026 (four months and one day from issuance).
• Final Acceptance: Offering pending final acceptance by the TSX Venture Exchange.
• Related‑Party Participation: Insider Roman Leydolf purchased 1,000,000 shares (25% of total offering).
• Regulatory Exemptions: Transaction relied on MI 61‑101 exemptions (sections 5.5(a) and 5.7(1)(a)) because neither fair market value nor consideration exceeded 25% of Principal’s market cap.
• Reporting Note: No material change report filed 21 days prior to closing; company deemed this reasonable for expeditious completion.

Notable Quotes

• “We are pleased to have successfully closed this financing, which provides the capital needed to advance our growth initiatives and support ongoing operations.” – Jerry Trent, Chief Executive Officer, Principal Technologies Inc.