City View Signs Binding LOI for Stablecoin Treasury Management Platform - Arkenyield

Rhea-AI Summary

City View Green Holdings (OTC:CVGRF) has signed a binding Letter of Intent to acquire up to 20% stake in Arkenyield, a digital asset yield platform, for $575,000. The purchase will be financed through a 50/50 split of common shares ($287,500) and a five-year convertible debenture ($287,500) at $0.05 per share conversion price.

The acquisition aligns with City View's planned transition from a cannabis issuer to an investment issuer, pending CSE and shareholder approval. The company is also exploring cryptocurrency treasury management integration and has granted 2.5 million stock options to directors, officers, and consultants, exercisable at $0.05 per share over 3 years.

Positive

• Strategic pivot from cannabis to digital finance sector through 20% acquisition of Arkenyield
• Balanced acquisition financing structure with 50% equity and 50% convertible debenture
• Potential expansion into stablecoin and digital asset treasury management
• Long-term convertible debenture terms with 5-year maturity

Negative

• Transaction subject to multiple approval requirements including CSE and shareholders
• Significant business model change from cannabis to investment issuer carries execution risks
• Substantial dilution potential from both share issuance and convertible debenture
• Entry into volatile cryptocurrency market poses new risks

Toronto, Ontario--(Newsfile Corp. - July 15, 2025) - City View Green Holdings Inc. (CSE: CVGR) (OTC Pink: CVGRF) (FSE: CVY0) (the "Company" or "City View"), is pleased to announce its binding letter of intent (the "LOI") to acquire up to a 20% interest in Arkenyield, a pioneering digital asset yield platform. This strategic investment, valued at $575,000, underscores City View's commitment to expanding its footprint in the rapidly evolving digital finance sector, particularly within the stablecoin ecosystem.

Pursuant to the LOI dated July 14, 2025, City View will acquire up to 20% of the issued and outstanding securities of Arkenyield (the "Arkenyield Shares"). The aggregate purchase price for this acquisition is $575,000 (the "Purchase Price").

The Purchase Price will be satisfied through a combination of City View common shares and a convertible debenture:

• Consideration Shares: $287,500 of the Purchase Price will be satisfied through the issuance of common shares of City View (the "Consideration Shares"). The price per Consideration Share will be determined based on prevailing market conditions at the time of issuance.

• Convertible Debenture: The remaining $287,500 will be satisfied through the issuance of a convertible debenture (the "Debenture"). The Debenture will have a term of five (5) years and will be convertible into common shares in the capital of the Corporation at a price of $0.05 per share.

Further to the Company's press release of May 15, 2025, City View intends to refocus its business operations from a "cannabis issuer" to an "investment issuer" (the "Proposed COB"). The Proposed COB is considered a fundamental change / change of business under Policy 8 of the Canadian Securities Exchange ("CSE") and, as such, will be subject to all of the requirements of Policy 8 including, but not limited to, CSE and shareholder approval.

The Arkenyield Transaction is subject to the Company completing its Proposed COB and customary closing conditions, including the satisfactory completion of due diligence by both City View and Arkenyield.

Prior to the final completion of the Arkenyield Transaction, City View and Arkenyield will negotiate and execute a definitive share exchange agreement. This agreement will be based on commercially reasonable terms and will formalize the terms outlined in the LOI. Both parties must obtain all requisite approvals before the transaction can close.

City View Green is also exploring the strategic integration of cryptocurrency into its treasury management, fueled by a potential future financing round. This forward-thinking approach would involve allocating a portion of a forthcoming capital to digital assets, including stablecoins, which could offer stability and liquidity advantages within the volatile crypto market. To navigate this complex and evolving landscape, the company would engage Arkenyield for specialized third-party treasury management with its expertise in digital asset investments.

The Company announces that it has granted incentive stock options to certain directors, officers and consultants of the Company to purchase up to an aggregate of 2,500,000 common shares of the Company pursuant to the company's share option plan. The options are exercisable for a period of 3 years at a price of $0.05 per share.

About Arkenyield

Arkenyield is a cutting-edge digital asset yield platform focused on generating robust stablecoin-based returns. Leveraging proprietary Concentrated Liquidity Market-Making (CLMM) strategies, Arkenyield addresses the increasing institutional demand for stablecoin-native yield infrastructure, recognizing stablecoins as a foundational element of global financial systems.

The platform's active strategies strategically deploy capital across top-tier stablecoin pairs, trusted protocols, and leading blockchains. This involves sophisticated optimization of liquidity placement through advanced data analysis of exchange flows, on-chain activity, and market patterns. By concentrating liquidity within tight price ranges, Arkenyield delivers high-compounding returns on low-volatility assets, while ensuring full USD-denominated principal liquidity without lockups.

With stablecoins now facilitating over $27 trillion in annual settlements, surpassing the combined volume of Visa and Mastercard, Arkenyield is uniquely positioned to provide the essential yield layer for the next phase of global payments adoption. The company is actively pursuing public market access, aiming to be among the first stablecoin-native yield platforms to offer public investors a transparent, regulated vehicle for participating in the growth of digital dollars. Beyond yield generation, Arkenyield's broader mission is to enhance stablecoin utility at scale by providing critical yield infrastructure, treasury management, and deep liquidity services for the evolving digital economy.

For more information visit: https://www.arkenyield.com.

For further information contact:
City View Green Holdings Inc.
Rob Fia, CEO & President Phone:
416.722.4994
Email: rob@cityviewgreen.ca

Completion of the Proposed COB is subject to a number of conditions, including the acceptance and approval of City View's disclosure document by the CSE and shareholder approval. The Proposed COB cannot close until the required shareholder approval is obtained. There can be no assurance that the Proposed COB will be accepted by the CSE and/or completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular and/or listing statement to be prepared in connection with the Proposed COB, any information released or received with respect to the Proposed COB may not be accurate or complete and should not be relied upon. Trading in the securities of City View should be considered highly speculative.

The CSE has in no way passed upon the merits of the Proposed COB and has neither approved nor disapproved the contents of this press release.

Disclaimer for Forward-Looking Information This press release contains forward-looking statements which are not composed of historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. There are a number of important factors that could cause the Company's actual results to di fer materially from those indicated or implied by forward-looking statements and information. When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Important factors that could cause actual results to di fer materially from the Company's expectations include, among others, availability and costs of financing needed in the future, changes in equity markets and delays in the development of projects. Although the Company has a tempted to identify important factors that could cause actual results to di fer materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could di fer materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/258834

FAQ

What is the value of City View's (CVGRF) acquisition of Arkenyield stake?

City View is acquiring up to 20% stake in Arkenyield for $575,000, split between $287,500 in common shares and $287,500 in convertible debentures.

How is City View (CVGRF) financing the Arkenyield acquisition?

The acquisition is financed through a 50/50 split: $287,500 in common shares and $287,500 through a 5-year convertible debenture with $0.05 per share conversion price.

What is City View's (CVGRF) new business direction?

City View is transitioning from a cannabis issuer to an investment issuer, focusing on digital finance and cryptocurrency treasury management.

What stock options did City View (CVGRF) grant to its team?

City View granted 2.5 million stock options to directors, officers, and consultants, exercisable at $0.05 per share over a 3-year period.

What regulatory approvals does City View (CVGRF) need for its business change?

The company needs CSE approval and shareholder approval for its fundamental change of business under Policy 8 requirements.