Cheelcare Closes $3.02 Million Upsized Non-Brokered Private Placement

Rhea-AI Summary

Cheelcare (TSXV: CHER, OTC: CHCRF) closed an upsized non-brokered private placement, raising $3,023,250 gross. The offering was increased from $1.5 million to $3.0 million.

The company issued 2,015,500 Units at $1.50, each with one share and half a warrant exercisable at $2.25 for 24 months. Net proceeds fund working capital, product development, and commercialization.

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

Positive

• Upsized financing to $3.02 million due to investor demand
• Issued 2,015,500 Units at $1.50, strengthening cash position
• Additional upside from 1,007,750 warrants at $2.25 over 24 months
• Insider participation of $220,500, aligning management with shareholders

Negative

• Equity issuance of 2,015,500 new shares dilutes existing shareholders
• Potential further dilution if 1,007,750 warrants are exercised
• Cash finder’s fees of $67,410 reduce net proceeds
• Financing remains subject to final TSX Venture Exchange acceptance
• New securities subject to four-month-plus-one-day hold period

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Markham, Ontario--(Newsfile Corp. - July 3, 2026) - Cheelcare Inc. (TSXV: CHER) (OTC: CHCRF) ("Cheelcare" or the "Company"), a Canadian innovator in advanced mobility solutions, is pleased to announce that it has closed its previously announced upsized non-brokered private placement (the "Offering"), raising aggregate gross proceeds of $3,023,250.

The Offering was increased from $1.5 million to $3.0 million in response to strong investor demand, as previously announced on June 16, 2026.

Pursuant to the Offering, the Company issued 2,015,500 Units (the "Units") at a price of $1.50 per Unit. Each Unit consists of one common share of the Company (a "Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). A total of 2,015,500 Shares and 1,007,750 Warrants were issued pursuant to the Offering. Each Warrant entitles the holder to acquire one additional common share of the Company at an exercise price of $2.25 for a period of 24 months from the closing date, subject to the acceleration provisions previously announced.

The net proceeds from the Offering will be used for general working capital and corporate purposes, including continued product development and commercialization activities.

In connection with the Offering, the Company paid cash finder's fees of $67,410, representing 6% of the gross proceeds raised from certain subscribers, to eligible arm's-length finders, in accordance with the policies of the TSX Venture Exchange.

Directors and officers of the Company participated in the Offering by subscribing for an aggregate of 147,000 Units for gross proceeds of $220,500. Such participation constitutes a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied 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 Units issued to, nor the consideration paid by, such related parties exceeded 25% of the Company's market capitalization.

The securities issued pursuant to the Offering are subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable securities laws.

The Offering remains subject to the final acceptance 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/303828

FAQ

What did Cheelcare (OTC: CHCRF) announce on July 3, 2026 about its private placement?

Cheelcare announced it closed an upsized non-brokered private placement raising gross proceeds of $3,023,250. According to Cheelcare, the offering was increased from $1.5 million to $3.0 million in response to investor demand and remains subject to TSX Venture Exchange final acceptance.

How many units did Cheelcare (CHCRF) issue and at what price in the July 2026 financing?

Cheelcare issued 2,015,500 Units at a price of $1.50 per Unit. According to Cheelcare, each Unit includes one common share and half a warrant, resulting in 2,015,500 shares and 1,007,750 warrants being issued in the private placement.

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

Each whole warrant allows the holder to buy one additional share at $2.25 for 24 months. According to Cheelcare, 1,007,750 warrants were issued, with an exercise period of 24 months from closing, subject to previously announced acceleration provisions.

How will Cheelcare use the $3.02 million raised in its CHCRF private placement?

Cheelcare plans to use net proceeds for general working capital and corporate purposes. According to Cheelcare, funds will also support continued product development and commercialization activities, after deducting cash finders’ fees of $67,410 paid to eligible arm’s-length finders.

Did insiders participate in Cheelcare’s July 2026 private placement and under what conditions?

Yes. Directors and officers subscribed for 147,000 Units for gross proceeds of $220,500. According to Cheelcare, this related party transaction relied on MI 61-101 exemptions because the fair market value and consideration were below 25% of the company’s market capitalization.

What are the hold period and listing conditions for Cheelcare (CHCRF) July 2026 financing securities?

The securities are subject to a statutory hold period of four months and one day from issuance. According to Cheelcare, the offering is also subject to final acceptance by the TSX Venture Exchange, which must approve the private placement.