SPARC AI Closes Upsized Private Placement for $2.4 Million

Vancouver, Canada — March 25, 2026 — Leads & Copy —

SPARC AI Inc. has announced the closing of its upsized non-brokered private placement, raising $2.4 million. The offering consisted of 1,714,286 units at a price of $1.40 per unit, with no finder’s fee payable.

Each unit includes one common share of the company and one common share purchase warrant. The warrant allows the holder to purchase one common share of SPARC AI at $1.80 any time within 24 months of the offering's closing date.

SPARC AI may accelerate the warrant's expiry date if the company's common shares exceed $3.00 for ten consecutive trading days on the Canadian Securities Exchange.

The company plans to use the net proceeds to further develop its Overwatch platform, fund commercialization activities, and for general corporate purposes, including working capital.

The units were offered for sale under the listed issuer financing exemption in all provinces of Canada (excluding Quebec) and other qualifying jurisdictions, including the United States. These units are immediately free-trading under applicable Canadian securities laws.

Company insiders purchased 156,858 units in the offering, totaling $219,601.20. This is considered a “related party transaction” under Multilateral Instrument 61-101, but it is exempt from the formal valuation and minority shareholder approval requirements, as the value of the units acquired does not exceed 25% of the company’s market capitalization.

The company expects to file a material change report with details of the transaction. The company deemed it reasonable to file the report less than 21 days prior to the offering's closing to take advantage of available financing opportunities.

SPARC AI is a defense technology company that focuses on autonomous systems navigation and targeting in areas where GPS is unavailable. The company's AI platform uses low-cost inertial sensors already in commercial drones to create precision instruments without needing more hardware, external signals, or complex integration. SPARC AI says its software-only approach makes GPS-denied target acquisition and navigation accessible for drone operations.

This announcement is not an offer to sell securities in the United States or any jurisdiction where such an offer would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

Source: SPARC AI Inc.