DeFi Technologies (the “Company” or “DeFi Technologies“), a financial technology company bridging the gap between traditional capital markets and decentralized finance (“DeFi”), today provides additional disclosure regarding the share ownership and depository imbalances first disclosed in its August 12, 2025 news release (the “August NR“). This news release (the “Clarifying News Release“) was requested by staff of the Ontario Securities Commission in connection with a staff review and is intended to provide additional disclosure with respect to the August NR and the Company’s plans going forward.
The Company receives feedback from shareholders on an ongoing basis, including anecdotal information on potential trading irregularities. The Company engaged Shareholder Intelligence Services, LLC (“ShareIntel“) in June 2025 to provide shareholder data, including share ownership, purchases, sales and custody by individuals, institutions, broker-dealers, clearing agents and custodians, to enable the Company to better understand the trading, settlement, and beneficial ownership of its common shares (the “Common Shares“) and communicate findings to shareholders. The retention of ShareIntel was announced by the Company on June 20, 2025 (the “June NR“)
At the time of the August NR, the Company had received three point-in-time reports dated June 23, 2025, June 30, 2025 and July 15, 2025 respectively (the “Reports“). Such Reports indicated persistent differences between share positions reported by certain broker-dealers to intermediaries of Depository Trust Company (“DTC“), the Canadian Depository for Securities (“CDS“) and Broadridge Financial Solutions (“Broadridge“).
Given the imbalances identified in the Reports and ongoing shareholder interest in this matter, the Company issued the August NR to provide all shareholders full disclosure of the Company’s efforts to review trading irregularities. Since the August NR, the Company has received two additional point-in-time reports, which showed continued imbalances in both the United States and Canada.
To better understand, review and rectify share ownership imbalances, the Company has contacted a total of 14 broker-dealers with the highest levels of imbalances reported to intermediaries to request reconciliations and explanations for discrepancies. To date, it has received five responses, with responses primarily attributing share imbalances to settlement timing differences, inclusion of reporting to certain intermediaries but not to others, securities lending, differences in reporting inquiries to certain intermediaries and differences due to shares held in different currencies. The Company continues to await responses from the remaining broker-dealers and may issue additional inquiries to further understand imbalances in the Reports.
At this time, based on information received and reviewed to date, the Company does not believe that share ownership imbalances had any impact on the voting results at the 2025 shareholder meeting of the Company given the quantum of imbalances identified and quorum at such meeting.
