Mr. Chris Yeung reports

UNIVERSAL DIGITAL INC. FILES PRELIMINARY PROSPECTUS FOR ADDITIONAL LEVERAGED CRYPTO EQUITY ETFS

In partnership with LongPoint Asset Management Inc., Universal Digital Inc. has filed a preliminary prospectus for the proposed launch of two new inverse leveraged exchange-traded funds.

The proposed LFG Daily (-2X) Coin Short ETF will seek to deliver two times the inverse (-2x) of the daily performance of Coinbase Global Inc. while the proposed LFG Daily (-2X) MSTR Short ETF will seek to deliver two times the inverse (-2x) of the daily performance of MicroStrategy Inc.

The proposed exchange-traded funds are structured as alternative mutual funds, and LongPoint will apply for the conditional listing approval of the ETFs on the Toronto Stock Exchange. The company expects the COID ETF to be listed under the ticker symbol COID, and the MSTZ ETF to be listed under the ticker symbol MSTZ. Both ETFs are expected to be listed and traded in Canadian dollars, subject to regulatory and TSX approval.

Universal Digital and LongPoint entered into a partnership agreement on May 21, 2025, to establish, operate and market Universal Digital-branded ETF products in Canada. The partnership currently has co-launched two TSX-listed ETFs, COIU and MSTU. The company has co-developed the newly proposed ETFs with LongPoint and will act as a promoter and brand partner for the ETFs. LongPoint will serve as the investment fund manager and portfolio manager for the ETFs, leveraging its experience in ETF structuring, compliance and operations.

"Since launching our first ETFs with LongPoint earlier this year, we've been focused on expanding the product lineup to give investors more ways to access and manage exposure to the digital asset sector," said Chris Yeung, chief executive officer of Universal Digital. "Filing for these inverse leveraged ETFs marks another step forward in building a comprehensive suite of products that meet a broad range of trading and hedging objectives."

"LongPoint is thrilled to continue its partnership with Universal Digital to expand the LFG ETF lineup and bring these first-of-their-kind products to the Canadian market. We've seen strong demand from Canadians actively trading similar U.S.-listed ETFs, and, once listed, these ETFs will offer a homegrown alternative tailored to active Canadian investors," said Steve Hawkins, chief executive officer of LongPoint.

The preliminary prospectus dated Aug. 12, 2025, containing important information relating to the ETFs, has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. A copy of the preliminary prospectus is available on SEDAR+. Prospective investors cannot buy shares of the ETFs until the relevant securities commissions or similar authorities issue receipts for the final prospectus of the ETFs, and the ETFs begin trading on the TSX.

About Universal Digital Inc.

Universal Digital is a Canadian investment company focused on digital assets, businesses, and private and publicly listed entities that are involved in high-growth industries, with a particular focus on blockchain, cryptocurrencies and cryptocurrency technologies. The company aims to provide shareholders with long-term capital growth through a diversified investment approach and to participate in the transformation of global finance through the integration of digital asset strategies.

We seek Safe Harbor.