BlockchainK2 Announces Proposed Debt Settlement

Rhea-AI Summary

BlockchainK2 (OTCQB: BIDCF; TSXV: BITK) announced a proposed debt settlement dated October 31, 2025 to settle $340,000 of outstanding indebtedness by issuing 4,857,142 common shares at $0.07 per share (the "Debt Settlement Shares").

The notice discloses that 928,571 shares will be issued to related parties and the company is relying on MI 61-101 exemptions from valuation and minority shareholder approval because the issuance is claimed to be under 25% of market capitalization. Closing is subject to TSX Venture Exchange approval. The release contains customary forward-looking cautionary language and refers investors to regulatory filings for additional risk details.

Positive

• Settles $340,000 of outstanding indebtedness
• Uses equity issuance instead of cash outflow

Negative

• Issues 4,857,142 new shares at $0.07 (potential dilution)
• Related parties receive 928,571 shares
• Deal is subject to TSX Venture Exchange approval

News Market Reaction

+36.10%

1 alert

+36.10% News Effect

On the day this news was published, BIDCF gained 36.10%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - October 31, 2025) - BlockchainK2 Corp. (TSXV: BITK) (OTCQB: BIDCF) (FSE: KRL2) (the "Company") announces that the Company proposes to settle outstanding indebtedness totaling $340,000 through the issuance of 4,857,142 common shares at a price of $0.07 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 928,571 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/272706

FAQ

What did BlockchainK2 (BIDCF) announce on October 31, 2025?

BlockchainK2 proposed settling $340,000 of debt by issuing 4,857,142 shares at $0.07 per share.

How many BlockchainK2 shares will related parties receive in the BIDCF debt settlement?

Related parties are to receive 928,571 of the Debt Settlement Shares.

Is the BlockchainK2 (BIDCF) debt settlement final or conditional?

The settlement is conditional and requires TSX Venture Exchange approval to close.

Why did BlockchainK2 rely on MI 61-101 exemptions for the BIDCF transaction?

The company relied on MI 61-101 exemptions because the Debt Settlement Shares allegedly do not exceed 25% of market capitalization as defined under MI 61-101.

What is the per-share price in BlockchainK2's proposed BIDCF debt settlement?

The Debt Settlement Shares are priced at $0.07 per share.