Cheelcare Announces $1.0 Million Unsecured Note Financing

Rhea-AI Summary

Cheelcare (TSXV: CHER) entered term sheets for a non-brokered unsecured note financing of up to $1,000,000, expected to include $750,000 from Pathfinder Asset Management Ltd. and $250,000 from NameSilo Technologies.

The Notes carry an 18-month term at 12% annual interest, with interest payable semi-annually and principal due at maturity. The company may redeem after one year without penalty. Cheelcare will issue an aggregate 132,450 Bonus Shares (20% of principal over $1.51/share) subject to a four-month hold. Closing remains subject to customary corporate and Exchange approvals.

Positive

• Committed financing of up to $1,000,000
• Lenders are arm's-length strategic investors
• Company may redeem notes after 1 year without penalty

Negative

• Notes are unsecured, providing no collateral protection
• High interest cost of 12% per annum
• Issuance of 132,450 Bonus Shares creates shareholder dilution

Markham, Ontario--(Newsfile Corp. - February 9, 2026) - Cheelcare Inc. (TSXV: CHER) ("Cheelcare" or the "Company"), a Canadian innovator in advanced mobility solutions, today announced that it has entered into term sheets with strategic investors for a non-brokered unsecured promissory note (the "Notes") financing for gross proceeds of up to $1,000,000 (the "Offering").

The Offering is expected to include $750,000 from Pathfinder Asset Management Ltd. ("PAML") and $250,000 from NameSilo Technologies Corp ("NameSilo" and together with PAML (the "Lenders")) subject to execution of definitive agreements and TSX Venture Exchange (the "Exchange") approval.

The Notes will have a term of eighteen (18) months and will accrue interest at the rate of 12% per annum, with principal due and payable on maturity and interest payable semi-annually. The Company has the right to redeem and prepay the Notes after one (1) year without notice, bonus or penalty.

The Company intends to use the proceeds from the Offering for working capital, inventory, product manufacturing activities, and general corporate purposes.

In connection with the Offering, the Company will issue common shares of the Company (the "Bonus Shares") to the Lenders. The number of Bonus Shares to be issued to each Lender will be equal to 20% of the principal amount of the Notes divided by the Market Price (as defined in the policies the Exchange) of $1.51 per Bonus Share, which is the closing price of the Company's common shares on February 6, 2026. An aggregate of 132,450 Bonus Shares will be issued to the Lenders. The Bonus Shares will be subject to a four month hold period commencing from the date of issuance thereof, in accordance with applicable Canadian securities laws and the policies of the Exchange.

Closing of the Offering is subject to customary closing conditions, including receipt of all necessary corporate and regulatory approvals, including Exchange approval.

No finder's fees or commissions are payable in connection with the Offering. The Lenders are arm's length parties to the Company.

About Cheelcare Inc.
Cheelcare designs and manufactures innovative mobility solutions that empower independence for people with disabilities. From the Companion power assist devices to the groundbreaking Curio robotic complex-rehab power wheelchair, Cheelcare combines engineering excellence with human-centered design to improve quality of life. For more information, please visit: www.cheelcare.ca.

For further information, please contact:
Allex Laurin, Director of Marketing
Cheelcare Inc.
Tel: 1-888-948-2680 x200
Email: alaurin@cheelcare.com

Forward-Looking Information
This news release may contain forward-looking statements. Forward-looking statements are based on current expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those expressed or implied. Such factors include, but are not limited to, general economic conditions, market demand, supply chain disruptions, and regulatory approvals. Any forward-looking statements are made as of the date of this news release, and the Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws.

Neither the 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/283152

FAQ

What financing did Cheelcare (TSXV: CHER) announce on February 9, 2026?

Cheelcare announced a term-sheet for up to $1,000,000 in unsecured notes at 12% interest. According to the company, the Offering expects $750,000 from Pathfinder and $250,000 from NameSilo, subject to definitive agreements and Exchange approval.

What are the key terms of the Cheelcare unsecured notes (TSXV: CHER)?

The Notes have an 18-month term with 12% annual interest and semi-annual interest payments. According to the company, principal is due at maturity and notes may be redeemed after one year without bonus or penalty.

How many Bonus Shares will Cheelcare issue and how were they calculated?

Cheelcare will issue an aggregate of 132,450 Bonus Shares to the lenders. According to the company, Bonus Shares equal 20% of principal divided by a Market Price of $1.51 per share (closing price Feb 6, 2026).

What will Cheelcare use the proceeds from the $1,000,000 note financing for?

Proceeds are intended for working capital, inventory, product manufacturing, and general corporate purposes. According to the company, this allocation supports near-term operational liquidity and production activities.

Are there conditions required to close Cheelcare's note financing (TSXV: CHER)?

Closing is subject to customary corporate and regulatory approvals, including TSX Venture Exchange approval. According to the company, definitive agreements and Exchange consent must be obtained before funds are advanced.

Will Cheelcare pay fees or commissions for the $1,000,000 Offering?

No finder’s fees or commissions are payable in connection with the Offering. According to the company, the transaction is non-brokered and the lenders are arm's-length parties.