Universal Digital Announces Amended and Restated Promissory Note with Conversion Rights
Rhea-AI Summary
Universal Digital (OTCQB:LFGMF) signed an amended and restated promissory note with Helena Global Investment Opportunities 1, conditional on Canadian Securities Exchange approval.
The amendment extends maturity to August 15, 2026, increases principal to US$325,000 including a US$25,000 extension fee, keeps interest at 6% per year, and introduces conversion rights at C$0.065 per share. The note remains secured. Helena may convert balances into common shares at C$0.065, including automatic conversion on a change of control, subject to approvals. No common shares are issued at closing, no new cash proceeds are received, and no finder’s fees are payable.
AI-generated analysis. Not financial advice.
Positive
- Debt maturity extended to August 15, 2026, improving near-term repayment flexibility
- Interest rate maintained at 6% per annum under the amended note
- Secured status preserved under existing pledge agreement dated January 27, 2026
- No finder’s fees payable in connection with the amended promissory note
Negative
- Principal balance increases to US$325,000 including a US$25,000 extension fee
- Introduction of conversion rights at C$0.065 per share may dilute shareholders
- No new cash proceeds received by the company from this amendment
Vancouver, British Columbia--(Newsfile Corp. - May 20, 2026) - Universal Digital Inc. (CSE: LFG) (OTCQB: LFGMF) (FSE: 8R20) ("Universal Digital" or the "Company") announces that it has signed an amended and restated promissory note with conversion rights dated May 20, 2026 with Helena Global Investment Opportunities 1 Ltd. ("Helena"), an arm's length party. The amended note amends and restates the promissory note issued to Helena on January 27, 2026 and is conditional upon acceptance by the Canadian Securities Exchange ("CSE").
If accepted by the CSE, the amended note will extend the maturity date to August 15, 2026, increase the principal amount from US
Helena may convert all or any portion of the outstanding amount under the amended note into common shares of the Company at C
About Universal Digital Inc.
Universal Digital Inc. is a Canadian investment company focused on digital assets, businesses and private and publicly listed entities that are involved in high-growth industries, with a particular focus on blockchain, cryptocurrencies and cryptocurrency technologies. The Company aims to provide shareholders with long-term capital growth through a diversified investment approach, and to participate in the transformation of global finance through the integration of digital asset strategies.
For further information contact:
Chris Yeung
Chief Executive Officer and Director
Email: IR@universaldigital.io
Phone: (289) 646-6252
www.universaldigital.io
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
Certain statements in this release constitute "forward looking statements" or "forward looking information" within the meaning of applicable securities laws, including statements relating to the amended note, the potential conversion or repayment of amounts owing under the amended note, the potential issuance of common shares on conversion, the potential completion of any change of control transaction, receipt of required approvals, the availability of capital, the Company's capitalization, and the Company's business strategy, market positioning, regulatory approvals, anticipated timelines, and general economic, financial, market and political conditions. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the Company continuing its anticipated business strategy, the enforceability and performance of the amended note and related pledge agreement, availability of capital to repay the amended note or pursue strategic initiatives, receipt of required approvals, expectations with respect to market conditions, anticipated timelines, operating costs, and other business and economic considerations. While the Company considers its assumptions to be reasonable as of the date hereof, forward looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward looking statements or information except as may be required by applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements or information, including, without limitation, the risk that required approvals are not obtained, the risk that the amended note is not repaid or converted as anticipated, dilution arising from any conversion, the occurrence of an event of default, volatility in the market price of the Company's common shares, volatility in digital asset markets, availability of capital, regulatory developments, and the Company not realizing the anticipated benefits set out above. Please see the "Risk Factors" section of the Company's most recent annual information form dated June 3, 2025 for the year ended January 31, 2025.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298207