FeralX Systems Advances Growth Strategy with New Financing, Asset Acquisition, and CFO Appointment

VANCOUVER, British Columbia – June 5, 2026 – FeralX Systems Inc. has announced a series of significant corporate developments, including the successful closing of the third tranche of its non-brokered private placement financing, the completion of a strategic asset acquisition from Next Dynamics Corp., and the appointment of a new Chief Financial Officer. These milestones represent important steps in the company's ongoing transformation into a Canadian defense technology and advanced manufacturing enterprise.

Third Tranche of Private Placement Raises $630,000

FeralX Systems confirmed that it has successfully completed the third tranche of its previously announced private placement financing. Through this financing round, the company raised $630,000 in gross proceeds by issuing 1,575,000 common shares at a subscription price of $0.40 per share. The latest financing round further strengthens the company's capital position and provides additional resources to support its strategic growth initiatives.

As part of the financing process, eligible arm’s-length finders received cash commissions equivalent to 8% of subscriptions introduced by them. In accordance with Canadian securities regulations, all securities issued under the private placement are subject to a statutory hold period of four months and one day.

Debt Settlement Enhances Balance Sheet

In addition to the financing, FeralX completed a debt settlement transaction aimed at improving its financial position. The company settled approximately $515,116.88 in outstanding indebtedness owed to arm’s-length creditors through the issuance of 1,287,793 common shares at a deemed price of $0.40 per share.

This debt conversion reduces liabilities while preserving cash resources, providing the company with greater financial flexibility as it pursues future expansion opportunities. The shares issued under the debt settlement will also be subject to applicable resale restrictions and statutory hold periods under Canadian securities laws.

Strategic Acquisition of Intellectual Property Assets

Another major milestone announced by FeralX is the completion of its acquisition of certain Canadian intellectual property assets from Next Dynamics Corp.. The transaction closed on May 29, 2026, following the signing of an asset purchase agreement earlier in May.

The acquisition was completed for a total consideration of $595,000, consisting of:

• $100,000 in cash consideration
• Assumption of $495,000 in debt obligations

The acquired assets are expected to strengthen FeralX’s technological capabilities and support its long-term objective of becoming a vertically integrated defense technology company.

Regulatory Transfers Remain in Progress

While the acquisition itself has been completed, certain licenses, permits, and regulatory approvals associated with the acquired assets have not yet been formally transferred. These approvals remain subject to customary assignment and transfer procedures with relevant governmental and regulatory authorities.

Until those transfers are finalized, the licenses and permits will be held in trust for the benefit of FeralX under the terms of a bare trust agreement. This arrangement ensures operational continuity while regulatory processes are completed.

Related Party Transaction Approval Obtained

The acquisition qualifies as a related-party transaction under Canadian securities regulations, specifically Multilateral Instrument 61-101 concerning the protection of minority security holders in special transactions.

According to the company, disinterested shareholders and subscribers participating in the private placement had previously approved the acquisition. FeralX also relied on available exemptions from formal valuation requirements, primarily because its shares are not currently listed on a specified exchange covered by the regulation.

New Chief Financial Officer Appointed

FeralX further announced the appointment of Ira Levy as the company’s new Chief Financial Officer.

The appointment comes as part of the company's efforts to strengthen its executive leadership team during a period of rapid corporate development. Meanwhile, James Ward, who previously served as CFO, will continue in his role as Chief Executive Officer, ensuring continuity in the company’s overall strategic direction.

Investment in Blackcreek Labs Through Promissory Note

In a separate transaction, FeralX subscribed for a $375,000 promissory note issued by Blackcreek Labs Inc., a non-arm’s-length party.

The note was subscribed on June 3, 2026, and is payable on demand. According to the company, proceeds from the financing will be used for general working capital requirements and other corporate purposes. The note bears interest at a rate of 1% annually, compounded monthly, and remains unsecured.

The company retains the right to demand repayment of the outstanding principal and accrued interest at any time. Furthermore, the note can be repaid partially or in full without penalty, subject to customary notice provisions.

Related Party Considerations

Because Blackcreek Labs is considered a related party, the promissory note transaction also falls within the scope of Multilateral Instrument 61-101. FeralX stated that it is relying on exemptions from formal valuation and minority approval requirements because the transaction’s value does not exceed 25% of the company’s market capitalization.

Building a Canadian Defense Technology Platform

FeralX Systems has outlined an ambitious vision to become a leading Canadian defense research, development, and manufacturing company. The company’s strategy involves integrating advanced technologies, intellectual property, and manufacturing capabilities into a unified platform capable of serving modern defense and security requirements.

Management believes that, upon completion of previously announced strategic transactions, FeralX will be positioned to design, develop, and manufacture a comprehensive range of defense-related technologies. These include advanced systems for the modern warfighter, portable unmanned systems, precision targeting solutions, and artificial intelligence-enabled defense applications.

Growth Through Acquisition and Capital Formation

The latest announcements continue a series of strategic initiatives launched by FeralX in recent months. Earlier this year, the company completed a corporate rebranding and began pursuing acquisitions and financing arrangements designed to establish a comprehensive defense technology ecosystem. These initiatives include partnerships and transactions involving Next Dynamics and Blackcreek Labs, which management views as critical components of its long-term growth strategy.

Through a combination of capital raising, asset acquisitions, executive leadership enhancements, and technology investments, FeralX is working to build a foundation capable of supporting future commercialization and expansion opportunities within Canada's growing defense and security sector.

Looking Ahead

With fresh capital from the latest financing round, a strengthened balance sheet through debt settlement, newly acquired intellectual property assets, and an expanded leadership team, FeralX enters the next phase of its corporate development with increased momentum.

The company will continue working toward the completion of regulatory transfers related to its acquired assets while pursuing its broader objective of becoming an integrated supplier of advanced defense technologies. Management remains focused on executing its strategic roadmap, expanding technological capabilities, and creating long-term value for shareholders.

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