SATO Technologies Corp. Announces Subsidiary Forbearance Agreement

SATO Technologies Corp. Announces Subsidiary Forbearance Agreement

SATO Technologies Corp. (TSXV: SATO,OTC:CCPUF) (OTCQB: CCPUF) ("SATO" or the "Company") announces that Canada Computational Unlimited Inc. ("CCU"), the Company's wholly-owned operating subsidiary, has entered into a subsequent forbearance agreement (the "Forbearance Agreement") with Sygnum Bank AG ("Sygnum").

The Forbearance Agreement provides CCU with a temporary and conditional grace period during which Sygnum has agreed to forbear from enforcing certain payment obligations under CCU's existing secured loan agreement, subject to customary conditions and ongoing covenants. The forbearance period is intended to provide CCU with enhanced financial flexibility as it progresses with its operational initiatives and broader business strategy.

During the forbearance period, CCU will continue to operate its business in the ordinary course, comply with agreed-upon reporting and operational requirements, and work toward reducing its outstanding indebtedness.

The Forbearance Agreement does not constitute a waiver of Sygnum's rights under the underlying loan documentation, and Sygnum retains all rights and remedies thereunder following the expiry or termination of the forbearance period, in accordance with its terms.

The Forbearance Agreement and the transactions contemplated thereby remain subject to acceptance by the TSX Venture Exchange, to the extent required.

About SATO

SATO, founded in 2017, is a publicly listed digital infrastructure company transitioning from cryptocurrency mining to AI compute. The Company currently operates a 20 MW data center in Québec powered by 100% renewable hydroelectricity, with plans to develop AI factory capacity across multiple sites. The Company is listed on TSXV: SATO,OTC:CCPUF & OTCQB: CCPUF. To learn more about SATO, visit www.bysato.com.

For additional information, please contact:

SATO Technologies Corp.
Romain Nouzareth, CEO
Email: invest@bysato.com
Phone: +1 (347) 280 3663

Forward-Looking Statements Disclaimer

This news release contains forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events, or developments that the Company believes, expects, or anticipates will or may occur in the future are forward-looking statements.

Forward-looking statements in this news release include, without limitation, statements regarding: the expected benefits and effect of the forbearance agreement; the Company's ability to comply with the terms, conditions, and covenants thereunder; the Company's plans to manage its indebtedness and ongoing operations during the forbearance period; the continuation of the Company's business in the ordinary course; and the receipt of all required approvals, including acceptance by the TSX Venture Exchange, if required.

Forward-looking statements reflect management's current expectations based on information available as of the date of this news release and are subject to a variety of risks and uncertainties that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, but are not limited to: the Company's ability to satisfy the conditions of the forbearance agreement; the risk that the forbearance period may be terminated as a result of an event of default; the TSX Venture Exchange not accepting the forbearance agreement or related matters, if required; volatility in digital asset markets (including fluctuations in the price of Bitcoin and other digital assets and the economics of cryptocurrency mining); general economic and market conditions; operational risks; and other risks and factors beyond the Company's control.

Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and involve inherent risks and uncertainties. Undue reliance should not be placed on such statements. Actual results may differ materially from those currently anticipated. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/291284

News Provided by TMX Newsfile via QuoteMedia

SATO:CC
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