Cheelcare Announces Upsizing of Non-Brokered Private Placement to $3.0 Million

Rhea-AI Summary

Cheelcare (OTC:CHCRF, TSXV:CHER) upsized its non-brokered private placement to up to 2,000,000 units at $1.50 each for gross proceeds of up to $3,000,000. Each unit includes one share and half a warrant, exercisable at $2.25 for two years.

Proceeds will fund working capital, product development, and commercialization. The financing includes expected insider participation under MI 61-101 exemptions, remains subject to TSX Venture Exchange approval, and the securities will carry a four-month-plus-one-day hold period.

Positive

• Offering size increased to up to $3,000,000 in gross proceeds
• Issuance of up to 2,000,000 units at $1.50 per unit
• Each unit includes half a warrant exercisable at $2.25 for two years
• Proceeds allocated to working capital, product development, and commercialization
• Expected participation from directors, officers, and insiders in the offering

Negative

• Potential dilution from up to 2,000,000 new shares plus warrants
• Offering completion subject to TSX Venture Exchange acceptance and closing conditions
• All securities subject to a four months and one day statutory hold period
• Possible payment of finder's fees, increasing capital-raising costs

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Markham, Ontario--(Newsfile Corp. - June 18, 2026) - Cheelcare Inc. (TSXV: CHER) (OTC: CHCRF) ("Cheelcare" or the "Company"), a Canadian innovator in advanced mobility solutions, is pleased to announce, that due to strong investor demand, it has increased the size of its previously announced non-brokered private placement financing (the "Offering").

The Company now intends to issue up to 2,000,000 units of the Company (the "Units") at a price of $1.50 per Unit for aggregate gross proceeds of up to $3,000,000 (the "Offering").

Each Unit consists of one common share in the capital of the Company (a "Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share of the Company at price of $2.25 per Share for a period of two (2) years from the date of closing.

The Warrants are subject to an acceleration clause whereby, if at any time prior to the expiry of the Warrants, the closing price of the Shares on the TSX Venture Exchange equals or exceeds $3.00 for any 10 consecutive trading days, the Company may, at its option, accelerate the expiry date of the Warrants to the date that is 30 days after the Company provides notice of or issues a press release announcing such acceleration. Any Warrants remaining unexercised after the accelerated expiry date will automatically expire, and all rights of the holders of such Warrants will terminate without compensation.

The Company intends to use the proceeds from the Offering, for general working capital and corporate purposes, including continued product development and commercialization activities.

The Offering is expected to include participation from certain directors, officers and insiders of the Company. Such participation will constitute a related party transaction within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company expects to rely on the exemptions from the formal valuation and minority shareholder approval requirements contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as neither the fair market value of the securities to be issued to, nor the consideration paid by, such insiders is expected to exceed 25% of the Company's market capitalization.

Completion of the Offering is subject to the acceptance of the TSX Venture Exchange (the "Exchange) and other customary closing conditions. The Units, and all securities underlying the Units, will be subject to a statutory hold period of four months and one day from their date of issue in accordance with applicable securities laws.

The Company may pay finder's fees in connection with certain subscriptions, in accordance with the policies of the TSX Venture Exchange.

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:
Sofiya Kagan, Director of Marketing
Cheelcare Inc.
Tel: 1-888-948-2680 x 206
Email: skagan@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/301917

FAQ

What did Cheelcare (OTC:CHCRF) announce about its private placement on June 18, 2026?

Cheelcare announced an upsized non-brokered private placement of up to 2,000,000 units for gross proceeds of up to $3,000,000. According to Cheelcare, each unit combines one common share with half a warrant, supporting working capital, product development, and commercialization plans.

What are the price and size details of Cheelcare (CHCRF) June 2026 unit offering?

The company plans to issue up to 2,000,000 units at a price of $1.50 per unit, for gross proceeds up to $3,000,000. According to Cheelcare, each unit includes one share and half of one common share purchase warrant.

What are the warrant terms in Cheelcare (CHCRF) 2026 private placement?

Each full warrant allows purchase of one additional Cheelcare share at $2.25 for two years from closing. According to Cheelcare, warrants include an acceleration clause if the share price reaches or exceeds $3.00 for 10 consecutive trading days on the TSX Venture Exchange.

How will Cheelcare (CHCRF) use the proceeds from its $3 million private placement?

Cheelcare plans to use the proceeds for general working capital and corporate purposes. According to Cheelcare, funds will also support continued product development and commercialization activities, aligning the financing with its advanced mobility solutions growth strategy.

Will insiders participate in Cheelcare (CHCRF) June 2026 private placement, and how is MI 61-101 applied?

The offering is expected to include participation from Cheelcare directors, officers, and insiders, creating a related party transaction. According to Cheelcare, it intends to rely on MI 61-101 exemptions because insider participation is expected to remain below 25% of market capitalization.

What approvals and resale restrictions apply to Cheelcare (CHCRF) June 2026 private placement units?

Completion of the offering is conditional on TSX Venture Exchange acceptance and customary closing conditions. According to Cheelcare, the units and underlying securities will be subject to a statutory hold period of four months and one day under applicable securities laws.