Vancouver, Canada – October 20, 2026 – TheNewswire - Redwood AI Corp. (CSE: AIRX) (OTCQB: RDWCF) (Frankfurt: Y0N, WKN: A422EZ) (“Redwood” or the “Company”), announces an update regarding its previously completed brokered private placement of 1,663,000 special warrants (the “Special Warrants”), which closed on July 21, 2026, for aggregate gross proceeds of approximately $3.5 million (the “Offering”), with Maxim Group LLC (“Maxim”) acting as exclusive placement agent.

 

Pursuant to the terms of the Special Warrants and the agency agreement between the Company and Maxim dated July 16, 2026, entered into in connection with the Offering, the Company agreed to use commercially reasonable efforts to, within 90 days of the closing of the Offering (the “Penalty Deadline”), qualify the distribution of the units issuable upon deemed exercise of the Special Warrants by way of a prospectus supplement (the “Prospectus Supplement”) to a final short form base shelf prospectus (the “Final Prospectus”).

 

As the Prospectus Supplement was not filed by the Penalty Deadline, the penalty provisions of the Special Warrants apply, increasing the number of units of the Company (each, a “Unit”) issuable upon deemed exercise of each Special Warrant from one Unit to 1.10 Units, for no additional consideration.

 

Each Unit shall consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”), with each Warrant entitling the holder to acquire one additional Common Share at an exercise price of $2.48 for a period of 60 months from the closing date of the Offering.

 

Accordingly, the 1,663,000 Special Warrants will entitle the holder to receive an aggregate of 1,829,300 Units upon deemed exercise, representing an additional 166,300 Units. The deemed exercise of the Special Warrants will occur on the earlier of the date on which the Prospectus Supplement is filed and November 22, 2026, being four months and one day following closing of the Offering.

 

About Redwood AI Corp.

 

Redwood uses advanced artificial intelligence to accelerate chemistry R&D, with the aim of assisting in drug discovery and development, and furthering defence and safety solutions. The Company combines expertise in chemistry, AI, and manufacturing to streamline drug synthesis and scale-up. Redwood’s platform is designed to enable faster, more efficient development of new therapies and chemistry-driven applications.

 

ON BEHALF OF REDWOOD AI CORP.,

 

“Louis Dron”

Chief Executive Officer

 

For more information, please contact:

 

Louis Dron

Chief Executive Officer

 

Tel: +1 888 530 8488

 

investors@redwoodai.com

 

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

 

Forward-Looking Statements Caution

 

This news release contains certain statements and information that may constitute “forward-looking information” within the meaning of applicable securities legislation (collectively, “forward-looking statements”). Forward-looking statements in this news release include, but are not limited to, statements regarding: the filing and timing of the Final Prospectus and the Prospectus Supplement; the qualification of the distribution of the Units issuable upon deemed exercise of the Special Warrants; and the timing of the deemed exercise of the Special Warrants.

 

Forward-looking statements are often identified by words such as “expects”, “anticipates”, “believes”, “intends”, “plans”, “estimates”, “may”, “will”, “would”, “could”, “potential”, “subject to” and similar expressions, including the negative forms thereof. Forward-looking statements are based on a number of assumptions that management believes are reasonable as of the date hereof, including, without limitation, assumptions that the Company will obtain a receipt for the Final Prospectus and file the Prospectus Supplement within the anticipated timeframe, and that general economic, market and industry conditions will not materially change.

 

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation: the risk that the Company may not obtain a receipt for the Final Prospectus or file the Prospectus Supplement within the anticipated timeframe; changes in market conditions; and risks relating to the Company’s business, operations and financial condition.

 

Although the Company believes that the forward-looking statements contained in this news release are reasonable, there can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are therefore cautioned not to place undue reliance on forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no 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.

Not for distribution to U.S. news wire services or dissemination in the United States.