SOL Strategies Completes Initial $20 Million Closing of USD $500 Million Convertible Note Facility

Core Insights - SOL Strategies Inc. has completed the initial closing of a USD $20 million tranche of a convertible note facility, which can total up to USD $500 million [1][2] - The proceeds from the initial tranche will be used to purchase SOL tokens for staking on the company's validators [1][2] - Interest on the convertible notes will be paid in SOL, based on up to 85% of the staking yield generated from the acquired SOL tokens [2] Company Overview - SOL Strategies Inc. is a Canadian investment company focused on the Solana blockchain ecosystem, providing infrastructure and strategic investments for decentralized applications [6] - The company operates under the ticker symbols CSE: HODL and OTCQX: CYFRF [6] Financial Structure - The initial tranche of USD $20 million is part of a larger facility that allows for additional drawdowns of up to USD $480 million, subject to certain conditions [2][10] - The convertible notes can be converted into common shares at the market price prior to conversion, following the terms of the notes and facility [3] Regulatory Compliance - The notes and underlying common shares will be issued outside of Canada, adhering to Ontario Securities Commission Rule 72-503, which means they will not be subject to a statutory hold period under Canadian securities laws [4]