Destiny Media Technologies Provides Corporate Update on Various Matters

Rhea-AI Summary

Destiny Media Technologies (OTCQB: DSNY), provider of Play MPE® music industry SaaS solution, issued a corporate update addressing three key matters. First, the company disclosed details about its 2022 stock option plan, which allows for up to 1 million stock options granted above market value. Second, regarding ongoing litigation, DSNY awaits a Supreme Court of British Columbia decision on a 2017 legal claim filed by its former CEO alleging conspiracy, breach of contract, and wrongful dismissal. Third, the company received a failure-to-file cease trade order from BCSC on May 5, 2025, due to delayed SEDAR+ filing of Q2 results. The order was lifted on May 7, 2025, with trading expected to resume soon.

Positive

• The cease trade order was quickly resolved within 2 days
• Stock options in the 2022 Plan are granted above market value, preventing immediate dilution

Negative

• Ongoing litigation with former CEO could result in significant damages if ruled unfavorably
• Recent cease trade order due to filing delays indicates potential compliance issues
• Trading remains suspended pending reinstatement

Vancouver, British Columbia--(Newsfile Corp. - May 21, 2025) - Destiny Media Technologies Inc. (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based SaaS solution for digital asset management in the music industry, today announced a corporate update.

Stock Option Plan
In 2022, the Company amended the 2015 stock option plan (the "2022 Plan") which was ratified by the Company's shareholders at the 2022 Annual General Meeting. Details of the plan were disclosed on page 10 of the Company's filings with the SEC here and in Canada here. The 2022 Plan provided for the issuance of up to one million stock options, all granted at prices above market value.

Litigation Update
There is no material new information regarding the legal claim filed in 2017 by the Company's former CEO. The claim, which alleges conspiracy, breach of contract, wrongful dismissal, defamation, and seeks aggravated and punitive damages, was previously disclosed here. The matter was heard in the Supreme Court of British Columbia in December 2024, and the Company is currently awaiting a decision. The Company continues to remain confident in a favorable outcome.

Cease Trade Order (CTO)
On Monday, May 5, 2025, the Company received a failure-to-file cease trade order ("FFCTO") from the British Columbia Securities Commission (BCSC), as the Company's second quarter financial results had been filed with the SEC but not yet published on SEDAR+. The issue was promptly corrected, and the BCSC lifted the FFCTO on May 7, 2025. Trading of the Company's shares will be reinstated soon.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Destiny Media Technologies Inc.
Destiny Media Technologies Inc. ("Destiny") provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE® (www.plaympe.com), is the world's leading provider of music promotional delivery services, dedicated to empowering artists and industry professionals with innovative solutions for success in the digital age. More information can be found at www.dsny.com.

Contacts:

Fred Vandenberg
CEO, Destiny Media Technologies, Inc.
604 609 7736 x236

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252924

FAQ

What is the status of DSNY's legal case with its former CEO?

The case was heard in the Supreme Court of British Columbia in December 2024, and the company is awaiting a decision. The former CEO's claims include conspiracy, breach of contract, wrongful dismissal, and defamation.

Why did Destiny Media Technologies (DSNY) receive a cease trade order in May 2025?

DSNY received a failure-to-file cease trade order on May 5, 2025, because their Q2 financial results were filed with the SEC but not published on SEDAR+. The order was lifted on May 7, 2025.

What are the key details of DSNY's 2022 stock option plan?

The 2022 Plan, amended from the 2015 plan and ratified by shareholders, provides for the issuance of up to one million stock options, all granted at prices above market value.

When will DSNY stock resume trading after the cease trade order?

While the cease trade order was lifted on May 7, 2025, the exact date for trading reinstatement was not specified in the announcement.