Cheelcare Closes $1.0 Million Unsecured Note Financing

Rhea-AI Summary

Cheelcare (CHCRF) closed a $1.0 million unsecured note financing on February 18, 2026 by issuing 12% promissory notes. Pathfinder purchased $750,000 and NameSilo purchased $250,000. Notes mature August 11, 2027, are redeemable after one year, and pay semi-annual interest.

The company issued 132,450 bonus shares to lenders equal to 20% of principal at $1.51 per share; proceeds will fund working capital, inventory, manufacturing, and general corporate purposes.

Positive

• Raised $1.0 million in unsecured financing
• Lenders are arm's length institutional parties
• No finder's fees or commissions paid

Negative

• Notes carry a high 12% annual interest rate
• Unsecured notes mature Aug 11, 2027 with near-term repayment risk
• Issued 132,450 bonus shares equal to 20% of note value

Markham, Ontario--(Newsfile Corp. - February 18, 2026) - Cheelcare Inc. (TSXV: CHER) ("Cheelcare" or the "Company"), a Canadian innovator in advanced mobility solutions, today announced that it has closed its previously-announced offering of 12% unsecured promissory notes (the "Notes") for aggregate gross proceeds of $1,000,000 (the "Offering").

The Offering was subscribed by Pathfinder Asset Management Ltd., which purchased $750,000 aggregate principal amount of Notes, and NameSilo Technologies Corp., which purchased $250,000 aggregate principal amount of Notes (collectively, the "Lenders").

The principal balance of each Note will be payable on August 11, 2027, provided that the Company shall have the right to redeem and repay the Notes after one (1) year without notice, bonus, or penalty. The Notes bear simple interest at a rate of 12% per annum, with interest payable semi-annually. The Company intends to use the net proceeds from the Offering for working capital, inventory, product manufacturing activities, and general corporate purposes.

The Company expects to service interest obligations and repay the principal amount of the Notes from cash flows generated from its operating activities.

In connection with the Offering, the Company issued an aggregate of 132,450 common shares of the Company (the "Bonus Shares") to the Lenders. The Bonus Shares represent a value equal to 20% of the principal amount of the Notes, calculated at a price of $1.51 per Bonus Share, which was the closing price of the Company's common shares on February 6, 2026 prior to the announcement of the Offering. The Bonus Shares are subject to a four month hold period, expiring on June 19, 2026, in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange. Other than the issuance of the Bonus Shares, all amounts payable in respect of the Notes, including principal and interest, will be made in cash. The Notes are not convertible into securities of Cheelcare.

No finder's fees or commissions were paid 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

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/284246

FAQ

What financing did Cheelcare (CHCRF) close on February 18, 2026?

Cheelcare closed a $1.0 million unsecured note offering with 12% interest. According to the company, Pathfinder bought $750,000 and NameSilo bought $250,000, with notes maturing on August 11, 2027 and interest payable semi-annually.

How will Cheelcare (CHCRF) use proceeds from the $1.0M note financing?

The company intends to use proceeds for working capital, inventory, manufacturing, and general corporate purposes. According to the company, net proceeds will support operations and product manufacturing to help service interest and principal obligations.

What are the key terms of Cheelcare's (CHCRF) 12% promissory notes?

The notes bear simple interest at 12% per annum, payable semi-annually, and mature August 11, 2027. According to the company, notes are unsecured, redeemable after one year without penalty, and not convertible into shares.

Why did Cheelcare (CHCRF) issue 132,450 bonus shares to lenders?

The company issued bonus shares equal to 20% of note principal, priced at $1.51 per share. According to the company, the Bonus Shares were issued to lenders as part of the offering and are subject to a four-month hold period.

What are the investor implications of Cheelcare's (CHCRF) unsecured note financing?

Investors face higher interest expense and short-term repayment obligations due to 12% notes maturing in 2027. According to the company, proceeds bolster working capital but issuance of bonus shares creates potential dilution for existing shareholders.