Alset AI Acquires Chaco Minerals Debenture Adding Approximately $1.3 Million Investment to Balance Sheet to Offset Lyken.AI Receivables and Strengthen Investment Portfolio

Rhea-AI Summary

Alset AI (OTCQB:GPUSF) acquired an unsecured convertible debenture from Chaco Minerals valued at $1,301,077 on May 6, 2026, in exchange for reducing intercompany loans from Lyken.AI.

The debenture principal is $1,248,000, bears 3.0% interest, and matures on December 9, 2026; conversion is into units at $0.10 per unit. Following the assignment, Lyken.AI's amounts owing to Alset fell from $1,643,037.52 to $341,960.52.

AI-generated analysis. Not financial advice.

Positive

• Receivable converted into an investment asset valued at $1,301,077
• Lyken.AI debt reduced from $1,643,037.52 to $341,960.52
• Convertible terms provide potential equity upside at $0.10 per unit
• Balance-sheet diversification by adding exposure to Chaco Minerals and lithium assets

Negative

• Unsecured instrument exposes Alset to credit risk of Chaco Minerals
• Short remaining term with maturity on December 9, 2026 (~7 months)
• Low cash yield at 3.0% interest on the debenture

Transaction Provides Exposure for Alset AI to Important Critical Minerals in the Global Energy Transition while Improving Lyken.AI's Financial Position as it Pursues Strategic Growth Opportunities

VANCOUVER, BC / ACCESS Newswire / May 6, 2026 / Alset AI Ventures Inc. (TSXV:GPUS)(OTCQB:GPUSF)(FSE:1R60)(WKN: A40M0J) ("Alset AI" or the "Company"), an artificial intelligence ("AI") venture company advancing innovation through strategic investment and cloud computing solutions, is pleased to announce that it has entered into an assignment and assumption agreement dated May 6, 2026 with its portfolio company Lyken AI Computing Inc. (dba Lyken.AI) ("Lyken"), pursuant to which it has acquired an unsecured convertible debenture issued by 1000175307 Ontario Ltd. (dba Chaco Minerals) ("Chaco") in the principal amount of $1,248,000 (the "Debenture") in consideration for the reduction of amounts owing to the Company pursuant to certain loans provided by the Company to Lyken (the "Assignment").

The Debenture was originally issued by Chaco on December 9, 2024 (the "Issuance Date"), bears interest at a rate of 3.0% per annum, and will mature on December 9, 2026. Subject to early redemption by Chaco, Alset may convert the principal amount, plus accrued but unpaid interest, into units of Chaco consisting of one common share and one warrant at a price of $0.10 per unit. The Company and Lyken valued the Debenture at $1,301,077.00, calculated as the principal amount plus accrued but unpaid interest since the Issuance Date. Following completion of the Assignment, total amounts owing from Lyken to Alset have been reduced from $1,643,037.52 to $341,960.52.

The Company believes the Assignment is strategically meaningful as it converts an intercompany receivable into an investment asset, thereby strengthening Alset AI's investment portfolio and enhancing its balance sheet. Further, it materially improves Lyken.AI's balance sheet by reducing debts owing to the Company, providing greater financial flexibility as Lyken.AI continues to pursue strategic growth opportunities in cloud compute and AI infrastructure.

Chaco is a lithium exploration company focused on Paraguay's emerging Chaco Basin lithium district. The company holds a land package of approximately two million hectares in what it describes as an under-explored lithium district with geological similarities to more established lithium brine regions in South America.¹

Alset AI believes the assignment is consistent with its broader investment thesis: building exposure to assets and businesses positioned to benefit from the long-term buildout of AI infrastructure. As AI adoption accelerates globally, demand is increasing not only for compute capacity, but also for the energy systems and critical materials needed to support data centres, power continuity, battery storage, and grid resilience. The International Energy Agency recently reported that global electricity demand from data centres grew 17% in 2025, while electricity consumption from AI-focused data centres surged 50% in the same year, underscoring the increasing energy intensity of AI deployment.² Lithium is a key material in that buildout. Lithium-ion batteries are widely used in uninterruptible power supply systems, backup power architecture, and battery energy storage systems that support modern data-centre operations. Google disclosed in 2025 that it had deployed more than 100 million lithium-ion cells across its global data-centre fleet.³ Industry participants are also increasingly highlighting lithium's role in supporting AI-era data centres through backup power, load balancing, and renewable integration.⁴

Alset AI believes that direct or indirect exposure to critical materials linked to electrification, energy storage and resilient digital infrastructure is increasingly relevant as AI compute scales globally.

Adam Ingrao, Chief Executive Officer of Alset AI, commented: "The Assignment is aligned with our strategy of building Alset AI as an investment platform with exposure to assets that can benefit from the expansion of AI usage. By converting debt owing from Lyken.AI into an investment asset, we strengthen Alset's balance sheet, expand our portfolio of investments, and simultaneously improve Lyken.AI's financial position as it advances its strategic growth initiatives. We also view the Debenture as thematically aligned with our long-term view that AI growth will drive increasing demand not only for compute, but also for the energy storage systems, batteries and critical minerals that underpin next-generation data-centre infrastructure."

Regulatory Matters

No finder's fees were paid in connection with the Assignment. The Assignment is not considered to be an arm's length transaction as the Company and Lyken are Non-Arm's Length Parties (as defined by the policies of the TSX Venture Exchange ("TSXV")). The Assignment is not subject to the approval of the TSXV.

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 TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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 statements relating to the conversion of the Debenture, potential benefits of the Assignment to the Company and Lyken.AI, future strategic growth opportunities for Lyken.AI, any benefits from the long-term buildout of AI infrastructure, growth of AI adoption globally, the expected increase in energy systems and critical minerals, including lithium, in connection with the expansion of AI, the uses of lithium globally, AI growth driving demand for energy storage systems, batteries and critical minerals, and the strategic direction and business plans of the Company, including its ability to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies. 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.

Cautionary Note regarding Chaco

The Company is not a Mining Issuer (as defined by TSXV policies) and has no direct involvement with Chaco's exploration of the Basin lithium district. The Company's only involvement with Chaco is through its ownership of the Debenture, which is strictly a financial instrument.

References

¹ https://www.chaco-minerals.com/project

² https://www.iea.org/reports/key-questions-on-energy-and-ai/executive-summary

³ https://www.datacenterdynamics.com/en/news/google-deploys-100-million-li-ion-cells-in-its-global-data-centers/

⁴ https://energyx.com/blog/lithium-the-unsung-power-source-behind-the-ai-boom/

SOURCE: Alset AI Ventures Inc.

View the original press release on ACCESS Newswire

FAQ

What did Alset AI (GPUSF) acquire from Chaco Minerals on May 6, 2026?

Alset AI acquired an unsecured convertible debenture valued at $1,301,077. According to Alset AI, the debenture has $1,248,000 principal, 3.0% interest, and a maturity date of December 9, 2026.

How did the assignment affect Lyken.AI's balance owed to Alset AI (GPUSF)?

The assignment reduced amounts owing from Lyken.AI to Alset from $1,643,037.52 to $341,960.52. According to Alset AI, the reduction followed conversion of intercompany loans into the Chaco debenture.

What are the conversion terms of the Chaco Minerals debenture held by Alset AI (GPUSF)?

Alset may convert principal and accrued interest into units at $0.10 per unit. According to Alset AI, each unit consists of one common share and one warrant of Chaco Minerals.

Does the Chaco debenture pay cash interest and when does it mature for Alset AI (GPUSF)?

The debenture bears cash interest at 3.0% per annum and matures on December 9, 2026. According to Alset AI, interest accrued since issuance was included in the $1,301,077 valuation.

What investor risks should holders of Alset AI (GPUSF) note regarding this transaction?

Key risks include credit exposure to an unsecured debenture and a short maturity on December 9, 2026. According to Alset AI, the instrument is unsecured and convertible, which carries both credit and market-conversion risk.