Mr. Anoosh Manzoori reports

SPARC AI TO CLOSE PRIVATE PLACEMENT TO DEVELOP AN AI MICROCHIP

Sparc AI Inc. has received oversubscribed demand for a private placement offering of 3,397,449 shares of the company for gross proceeds of $373,719. The offering at 11 cents per share will be completed on Friday, Dec. 8. All securities issued pursuant to the private placement will be subject to a hold period of four months and one day from the date of issuance under applicable securities laws being April 11, 2024. No finders' fees were paid with connection to this non-brokered private placement.

The private placement was oversubscribed with strong demand from accredited investors. All directors of the company have supported the private placement by taking 44 per cent of the allocation. Anoosh Manzoori subscribed to one million shares, Justin Hanka subscribed to 72,727 shares and Anthony Haberfield subscribed to 409,000 shares.

The funds raised will be used to embed the Sparc patented code and algorithms into a microchip. The funds will also cover all current working capital requirements to the end of 2024. The development will take approximately four months to complete and result in the company launching a powerful geospatial artificial intelligence microchip that can be easily installed on drones for security, surveillance, search and rescue, and reconnaissance activities. The development of the AI microchip will be carried out by a highly experienced engineering firm, and Sparc will retain all intellectual property rights to all existing and new code, systems, processes, and know-how.

The company will provide progress updates and host a launch event in the first quarter of 2024.

We seek Safe Harbor.