Grounded People Announces Non-Brokered Private Placement and Strategic Review

Rhea-AI Summary

Grounded People Apparel (OTC: GPAIF) announced a proposed non-brokered private placement of up to 10,000,000 units at $0.10 per unit to raise gross proceeds of up to $1,000,000. Each Unit includes one share and one-half warrant; whole warrants exercise at $0.12 for 36 months.

Net proceeds are intended for general working capital and to support an ongoing strategic review that may consider opportunities in mining and exploration. The placement is subject to customary conditions and Canadian Securities Exchange approval; securities will carry a statutory hold period of four months plus one day.

Positive

• Proposed financing up to $1,000,000
• Offer of up to 10,000,000 units at $0.10
• Warrants exercisable at $0.12 for 36 months

Negative

• Potential issuance of 10,000,000 shares may dilute existing holders
• No assurance the private placement will complete on proposed terms
• Strategic review may lead to material business change without timeline

VANCOUVER, BC / ACCESS Newswire / February 5, 2026 / Grounded People Apparel Inc. ("Grounded" or the "Company")(CSE:SHOE.X)(OTC PINK:GPAIF)(Frankfurt:K1G, WKN: A3DVB1) announces that it intends to complete a non-brokered private placement (the "Private Placement") of up to 10,000,000 units (the "Units") at a price of $0.10 per Unit, for gross proceeds of up to $1,000,000.

Each Unit shall consist of one common share (each a "Share") and one-half (1/2) of one common share purchase warrant (each whole warrant, a "Warrant"), with each (whole) Warrant entitling the holder to purchase one Share at an exercise price of $0.12 for a period of 36 months.

The net proceeds from the Private Placement are expected to be used for general working capital and to support the Company's ongoing strategic review, including the evaluation of potential opportunities in the mining and exploration sectors. This may include preliminary technical assessments, strategic discussions, due diligence and strategic acquisition initiatives related to emerging technologies.

As previously disclosed (please see news release dated November 25, 2025), the Company has been reviewing options to reposition its business and deploy capital into areas that management believes may offer improved long-term prospects. Mining and exploration have been identified as areas of interest as part of this process; however, no definitive transaction has been entered into at this time, and the Company notes that any such transaction will be subject to the review and approval of the Canadian Securities Exchange.

"This financing is intended to provide the Company with additional flexibility as we continue to review strategic alternatives," said Maximilian Justus, Chief Executive Officer of Grounded People Apparel Inc. "Our focus remains on disciplined capital allocation while we evaluate opportunities that could support a more sustainable business going forward."

The Private Placement is subject to customary conditions, including receipt of all necessary regulatory approvals, including approval of the Canadian Securities Exchange. All securities issued will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws.

There can be no assurance that the Private Placement will be completed on the terms proposed, or at all, or that any strategic initiative arising from the Company's review will result in a completed transaction.

About Grounded People Apparel Inc.
Grounded People Apparel Inc. is a publicly traded company listed on the Canadian Securities Exchange. The Company is undertaking a strategic review of its business and evaluating potential opportunities across emerging sectors, with a focus on prudent execution and shareholder value.

ON BEHALF OF THE BOARD OF DIRECTORS

"Maximilian Justus"

Maximilian Justus
Chief Executive Officer

For further information, please contact:
Email: investors@groundedpeople.com
Telephone: 1-844-673-6753

CAUTIONARY DISCLAIMER STATEMENT

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation, including in relation to the Company's ability to complete the Private Placement and to identify and / or pursue strategic opportunities in emerging (or any) sectors. Forward-looking statements are necessarily based upon several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Grounded People Apparel Inc.

View the original press release on ACCESS Newswire

FAQ

What is Grounded People Apparel (GPAIF) offering in the February 5, 2026 private placement?

Grounded People is offering up to 10,000,000 units at $0.10 per unit. According to the company, each Unit includes one common share and one-half of a share purchase warrant, with whole warrants exercisable at $0.12 for 36 months.

How much capital could Grounded People (GPAIF) raise from the proposed financing?

The proposed financing could raise up to $1,000,000 in gross proceeds. According to the company, net proceeds are intended for general working capital and to support its ongoing strategic review, including mining and exploration evaluations.

What are the warrant terms included in GPAIF's unit offering?

Each whole warrant allows purchase of one share at $0.12 for 36 months. According to the company, each Unit includes one-half of a warrant, so two Units equal one whole warrant exercisable during that 36-month period.

Will securities from the GPAIF private placement be restricted from trading?

Yes, all securities issued will be subject to a statutory hold period of four months and one day. According to the company, the hold period will follow applicable securities laws and customary regulatory conditions.

What will Grounded People (GPAIF) use the private placement proceeds for?

Proceeds are expected to be used for general working capital and to support a strategic review. According to the company, this review may include preliminary technical assessments, due diligence, and evaluation of mining and exploration opportunities.

Is the GPAIF private placement guaranteed to close as announced on February 5, 2026?

No, completion is not guaranteed; the placement is subject to customary conditions and approvals. According to the company, there can be no assurance the private placement will be completed on the proposed terms or at all.