BlockchainK2 Announces Proposed Debt Settlement

Rhea-AI Summary

BlockchainK2 Corp. (OTCQB: BIDCF) has announced a proposed debt settlement plan to resolve outstanding indebtedness of $317,098.37 through the issuance of 5,765,425 common shares at $0.055 per share.

The transaction includes a related party component, with 3,191,923 shares being issued to company insiders. BlockchainK2 is utilizing exemptions from valuation and minority shareholder approval requirements under MI 61-101, as the fair market value of the debt settlement shares is below 25% of the company's market capitalization. The completion of this debt settlement remains subject to TSX Venture Exchange approval.

Positive

• None.

Negative

• 55.4% of settlement shares going to related parties, indicating significant insider involvement
• Potential dilution for existing shareholders
• Share issuance at $0.055 may indicate current market weakness

Vancouver, British Columbia--(Newsfile Corp. - September 15, 2025) - BlockchainK2 Corp. (TSXV: BITK) (OTCQB: BIDCF) (FSE: KRL2) (the "Company") announces that the Company proposes to settle outstanding indebtedness totaling $317,098.37 through the issuance of 5,765,425 common shares at a price of $0.055 per share (the "Debt Settlement Shares").

A portion of the above-described transaction constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transaction ("MI 61-101") as 3,191,923 Debt Settlement Shares are being issued to related parties of the Company. The Company is relying on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the Debt Settlement Shares does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

Closing of the debt settlement is subject to the approval of the TSX Venture Exchange.

BlockchainK2 Corp.
Sergei Stetsenko
CEO
Phone: +971502806737
Email: s.serge@gmail.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Information Cautionary Statement

Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the TSX-V. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for the Company as described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's filings with Canadian securities regulators, which are available at www.sedarplus.ca

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/266370

FAQ

How much debt is BlockchainK2 (BIDCF) settling through share issuance?

BlockchainK2 is settling $317,098.37 in outstanding debt through the issuance of 5,765,425 common shares at $0.055 per share.

What is the price per share for BIDCF's debt settlement transaction?

The debt settlement shares are being issued at a price of $0.055 per share.

How many shares are being issued to related parties in BlockchainK2's debt settlement?

3,191,923 shares are being issued to related parties, representing approximately 55.4% of the total debt settlement shares.

What regulatory approvals does BlockchainK2 need for this debt settlement?

The debt settlement requires TSX Venture Exchange approval before closing.

Why doesn't BlockchainK2's debt settlement require minority shareholder approval?

The company is exempt from minority shareholder approval as the fair market value of the debt settlement shares is less than 25% of the company's market capitalization, qualifying under MI 61-101 exemptions.