Mr. Kevin Hoffman reports

KADESTONE CAPITAL CORP. REPORTS Q2 2026 FINANCIAL RESULTS AND ANNOUNCES LETTER OF AGREEMENT

Kadestone Capital Corp. has released its financial results for the six months ended June 30, 2026.

Financial results

For the six months ended June 30, 2026, the company reported a net loss of $3,096,690, or seven cents per share, compared with a net loss of $3,074,378, or seven cents per share, for the same period in the prior year. The increased loss was primarily driven by operating expenses, including salaries and wages of $1,102,186, interest expense of $616,596, and loss from associates totalling $385,325, offset by a decrease in consulting fees, which totalled $551,686.

Net cash used in operating activities decreased, declining to $1,971,861 for the six months ended June 30, 2026, compared with $2,733,134 in the prior year, due primarily to the timing of the payment of accounts payable and accrued liabilities.

The above unaudited financial information, including comparative information, is expressed in Canadian dollars and has been prepared in accordance with IFRS (international financial reporting standards) accounting standards, using the accounting policies and methods of application as described in notes 2 and 3 of the company's audited consolidated financial statements for the years ended Dec. 31, 2025, and Dec. 31, 2024.

Letter of agreement

On Aug. 6, 2026, the company, together with Attollo Management Inc. and Isthmus Projects Inc., entered into a letter of agreement (LOA) with a British Columbia first nation and related entities regarding the proposed real estate development of a future masterplanned community. The LOA establishes a framework for negotiating definitive partnership agreements and remains subject to the satisfaction of certain conditions precedent. No partnership has been formed or ownership interest acquired at this time.

Under the LOA, the company has agreed to advance funds for certain predevelopment, land carrying and project costs during the planning period. These advances are refundable if definitive partnership agreements are not executed, provided the company has fulfilled its obligations under the LOA. Upon execution of the definitive agreements and satisfaction of the applicable conditions precedent, the advances are expected to be applied in accordance with the partnership agreements.

About Kadestone Capital Corp.

Kadestone was established to pursue the investment in, acquisition, development and management of, residential and commercial income-producing properties, and procurement and sale of building materials within major urban centres and high-growth, emerging markets in Canada. The company operates five complementary business lines spanning building materials procurement and supply, property development and construction, construction finance, asset ownership, and property management. These synergistic business lines have solidified Kadestone's vision to become a market-leading vertically integrated property company.

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