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Alset AI Announces Shares for Debt Transaction

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Alset AI (OTC:GPUSD) announced a shares-for-debt transaction dated May 5, 2026 to settle $592,800 of creditor claims by issuing 3,592,727 common shares at $0.165 per share. The transaction is subject to TSX Venture Exchange approval and shares carry a four-month-plus-one-day hold period.

The board says the exchange preserves cash, improves the balance sheet and helps manage financial resources.

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Positive

  • Preserves cash by settling $592,800 in debt
  • Reduces recorded liabilities by $592,800 upon issuance
  • Improves balance sheet liquidity if shares-for-debt completes

Negative

  • Issuance of 3,592,727 shares will dilute existing shareholders
  • Transaction subject to TSXV approval, creating execution uncertainty
  • Issued shares subject to a four-month-and-one-day hold, limiting liquidity

News Market Reaction – GPUSD

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In the May 6 session, GPUSD gained 1.05%, reflecting a mild positive market reaction.

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VANCOUVER, BC / ACCESS Newswire / May 5, 2026 / Alset AI Ventures Inc. (TSXV:GPUS)(OTC:GPUSD)(FSE:1R60, WKN:A40M0J) ("Alset AI" or the "Company"), announces that on May 5, 2026, it signed debt settlement agreements with certain arm's length creditors for a total amount of $592,800.00 representing debt owed to the creditors. The Company's board of directors believes that settling this debt through the issuance of Shares is in the best interest of the Company, as it allows it to preserve cash for its operations, improve its balance sheet, and support the overall need to manage its financial resources prudently.

In accordance with the terms of the debt settlement agreements (the "Debt Settlement"), the Company intends to settle this debt by issuing 3,592,727 common shares (the "Shares") at a price of $0.165 per Share. This Debt Settlement has been formalized in a written agreement and remains subject to the approval of the TSX Venture Exchange. The Shares issued will be subject to a mandatory hold period of four months and one day from the date of issue, in accordance with applicable securities laws.

About Alset AI Ventures Inc.

Alset AI is an AI-focused venture investment platform dedicated to sourcing, funding, and developing companies across the artificial intelligence value chain. The company seeks to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies.

For further information about Alset AI Ventures Inc., please contact:

Investor Relations

Adam Ingrao
Chief Executive Officer
T: 236.312.6744
E: ir@alsetai.com

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.

Cautionary Note regarding Forward Looking Statements

This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") regarding the Company, including, but not limited to, statements with respect to the Debt Settlement; and the strategic direction and business plans of the Company. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Alset AI's business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, the impact of general economic conditions, and unforeseen events and developments. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Many of these factors are beyond the control of Alset AI. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof, and Alset AI undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws. Risks and uncertainties about the Company's business are more fully discussed under the heading "Risks and Uncertainties" in its most recent Management's Discussion and Analysis and other disclosure documents available on SEDAR+ at www.sedarplus.ca.

SOURCE: Alset AI Ventures Inc.



View the original press release on ACCESS Newswire

FAQ

What did Alset AI (GPUSD) announce on May 5, 2026 about debt settlement?

Alset AI announced a shares-for-debt deal to settle $592,800 of creditor claims by issuing 3,592,727 shares at $0.165 per share. According to the company, the transaction preserves cash and is subject to TSX Venture Exchange approval and a four-month-one-day hold period.

How will the GPUSD shares-for-debt affect existing shareholders?

Existing shareholders will experience dilution from the issuance of 3,592,727 new shares at $0.165 each. According to the company, the tradeoff preserves cash and reduces liabilities, but increases the total outstanding share count and may lower per-share ownership percentages.

Is TSX Venture Exchange approval required for the GPUSD debt settlement?

Yes, the debt settlement is conditional on TSX Venture Exchange approval before it becomes final. According to the company, the written debt settlement agreements remain subject to that approval and regulatory timing could affect completion and settlement timing.

When will the shares issued under the GPUSD debt settlement be tradable?

Shares issued will be subject to a mandatory hold period of four months and one day from the issue date before resale. According to the company, this hold period is required by applicable securities laws and limits immediate liquidity for recipients.

Why did Alset AI choose shares instead of cash to settle $592,800 debt?

The company said the board approved share issuance to preserve cash for operations and manage financial resources prudently. According to the company, issuing 3,592,727 shares at $0.165 allows debt reduction while conserving cash for ongoing business needs.