Sibannac CEO Exchanges Common Shares for Series D Preferred

The common share count would fall about 21.4%, but the replacement preferred shares retain conversion rights.

Rhea-AI Summary

Sibannac (OTCID:SNNC) announced that CEO David Mersky has agreed to exchange 31,666,667 common shares for Series D Convertible Preferred Stock. He will receive 263,889 preferred shares, and the exchanged common shares will be cancelled. Common shares outstanding will fall from 148,161,552 to 116,494,885, a reduction of about 21.4%.

Each Series D preferred share is convertible into 120 common shares. Preferred holders may not convert into more than 9.9% of the company's common stock, and the preferred shares have no common stock voting rights. Sibannac expects the exchange to be completed within the next ten days. Mersky said his aim is to reduce the common share count while the company builds Apollo Wellness Centers; his ownership commitment will remain in a different class of stock.

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Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Common share cancellation will reduce shares outstanding about 21.4%, from 148,161,552 to 116,494,885.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.263,889 preferred shares carry potential common dilution at 120 common shares each, subject to a 9.9% conversion limit.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Exchange completion remains pending; Sibannac expects completion within the next ten days.

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PARADISE VALLEY, AZ / ACCESS Newswire / November 5, 2026 / Sibannac, Inc. (OTCID:SNNC) today announced that its Chief Executive Officer, David Mersky, has agreed to exchange 31,666,667 shares of the company's common stock for 263,889 shares of its Series D Convertible Preferred Stock.

The common shares Mr. Mersky exchanges will be cancelled. As a result, Sibannac's common shares outstanding will fall from 148,161,552 to 116,494,885, a reduction of 31,666,667 shares, or about 21.4%.

	Common shares outstanding
Before the exchange	148,161,552
Shares exchanged	(31,666,667)
After the exchange	116,494,885

The Series D Convertible Preferred Stock are convertible at a ratio of 1 share of Series D Convertible Preferred Stock for 120 shares of common stock. The Series D Convertible Preferred Stockholders may not convert into more than 9.9% of the Company's Common Stock. These shares have no common stock voting rights. More information can be found at:

- View the filing on OTC Markets

The exchange is expected to be completed within the next ten days.

"I am exchanging these shares because I want Sibannac's common stock to be as tight as we can make it while we build Apollo Wellness Centers," said David Mersky, CEO of Sibannac. "Taking more than 31 million shares out of the common count is a direct way to do that. My commitment to the company stays the same; it is simply held in a different class of stock."

About Sibannac, Inc. Sibannac, Inc. (OTCID:SNNC) is a plant-medicine and wellness company focused on research, cultivation and therapeutic applications for mental health and wellness. Sibannac holds a 51% majority interest in Apollo Wellness Centers, Inc., a joint venture with Doc-Rx.com, LLC. For more information, visit www.snncinc.com.

Forward-Looking Statements This press release contains forward-looking statements, including statements about the completion and timing of the share exchange and its effect on Sibannac's common shares outstanding. Words such as "expects," "will" and "plans" identify these statements. They are not guarantees of future results, and actual results may differ materially. Risks include: whether and when the exchange is completed; the conversion of Series D Convertible Preferred Stock into common stock in the future, which would increase the number of common shares outstanding; the voting and other rights attached to the Series D Convertible Preferred Stock; Sibannac's need for additional capital, which may require issuing more shares; and the other risks described in Sibannac's filings posted on OTC Markets at www.otcmarkets.com. Forward-looking statements speak only as of the date of this release. Except as required by law, Sibannac undertakes no obligation to update or revise any forward-looking statement. This release is not an offer to sell or a solicitation of an offer to buy any securities.

Investor Contact Sibannac, Inc. · investors@sibannacinc.com

Media Contact media@snncinc.com · www.snncinc.com · x.com/sibannacinc

SOURCE: Sibannac, Inc.

View the original press release on ACCESS Newswire

FAQ

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How will Sibannac's CEO share exchange change SNNC's common shares outstanding?

The exchange will reduce common shares outstanding from 148,161,552 to 116,494,885, or about 21.4%. CEO David Mersky has agreed to exchange 31,666,667 common shares, which will be cancelled, for 263,889 Series D Convertible Preferred shares.

What conversion and voting rights do Sibannac's Series D preferred shares have?

Each Series D preferred share converts into 120 common shares, but preferred holders may not convert into more than 9.9% of Sibannac's common stock. The preferred shares have no common stock voting rights.