Intellistake Provides Corporate Update, Including Update on Financing and Announcement of Development of IntelliScope, Its Enterprise AI Suite Leveraging Decentralized Technologies

Intellistake Provides Corporate Update, Including Update on Financing and Announcement of Development of IntelliScope, Its Enterprise AI Suite Leveraging Decentralized Technologies

VANCOUVER, BC, Aug. 29, 2025 /CNW/ - Intellistake Technologies Corp. (CSE: ISTK) (OTCQB: ISTKF) (FSE: E41) ("Intellistake" or the "Company") is pleased to provide a corporate update including: (i) details on the development of its first artificial intelligence ("AI") software; (ii) an update on the status of its equity financing; and (iii) additional disclosure regarding its current business and plans for divestment of its historical food business.

Software Development

As disclosed in the Company's listing statement dated June 30, 2025 (the "Listing Statement")the Company has changed its business to focus on decentralized artificial-intelligence. In support of this it is pleased to announce the development of IntelliScope, a newly designed enterprise artificial-intelligence (AI) suite that applies decentralized AI technologies to deliver transparent and verifiable corporate intelligence. IntelliScope is being publicly introduced as Intellistake's enterprise AI suite, reflecting the Company's focus on advancing practical applications of decentralized AI technologies.

The IntelliScope suite is being developed as a collection of modular AI agents, each intended to address specific enterprise challenges. Development has advanced through internal closed testing, where functionality is being refined and validated. Built to leverage decentralized AI technologies developed within the ASI Alliance FET token ecosystem, IntelliScope is now preparing to move into closed beta testing with an enterprise client, a phase focused on gathering feedback to shape premium features and expand real-world use cases.

Planned capabilities of IntelliScope include the ability to process complex regulatory and market data, incorporate environmental and geological information, and generate intelligence summaries to support informed decision-making. Clients will be able to use IntelliScope to scan large information datasets and generate summary information that can be used to execute business decisions. For example, a renewable energy company can use Intelliscope to evaluate land availability, regulatory conditions, and environmental data when planning new infrastructure projects. By leveraging decentralized AI technologies, IntelliScope is being designed to offer intelligence that is transparent, auditable, and aligned with evolving enterprise requirements.

For businesses, this means reduced time spent on data gathering, improved compliance tracking, and faster decision-making based on trusted, verifiable intelligence, aiming to reduce inefficiencies within a client's workflows. IntelliScope is also designed to lower reliance on centralized systems, giving enterprises greater control over their data while maintaining security and transparency across workflows.

"Our development focus has been on proving that decentralized AI technologies can be applied at an enterprise level," said Liam Harpur, VP of Technology & Development at Intellistake. "As we progress from internal testing into enterprise beta, we are establishing a foundation for IntelliScope to evolve into a platform capable of supporting real operational decision-making across multiple industries."

Looking ahead, Intellistake intends to broaden IntelliScope's scope into additional sectors such as mining, finance, and supply chain monitoring, supporting its long-term vision of applying decentralized AI technologies to enterprise intelligence in scalable and practical ways.

Financing Update

With reference to the Company's previously announced equity financing (see press releases dated August 14, 2025 and August 18, 2025) for gross proceeds of up to $5 million (the "Financing"), the Company confirms that it has received shareholder approval. Based on indications, the Financing is oversubscribed, and the Company intends to close the Financing on September 2, 2025. The net proceeds of the Financing will be used for development of AI Agents, validator hardware acquisitions, acquisitions of digital currencies, research and development and marketing, repayment of existing accounts payable, investor relations expenditures, working capital requirements and other general corporate purposes.

Corporate Update

In addition, as a result of a review by the British Columbia Securities Commission, the Company is retracting and clarifying certain of our disclosure to provide additional detail regarding its current stage of development, use of AI, blockchain infrastructure plans, and digital-asset exposure.

As disclosed in the Listing Statement, the board of directors of the Company, in consultation with its legal and financial advisors, made a decision to complete a change of business from a food business to a technology company. The decision was made following a thorough evaluation of the Company's operations as a food business and strategic options to maximize shareholder value. Since completion of the change of business, the Company has sourced an independent valuation relating to its food business. The final independent valuation is expected to be delivered before the end of August 2025. The Company has commenced discussions regarding strategic options for divesting this business. As of the date hereof, no agreement has been entered into with respect to any divestiture transaction and the Company intends to continue to operate the food business through its subsidiaries until completion of a divestiture.

Following the change of business, Intellistake is an early-stage technology company focused on the integration of decentralized artificial-intelligence models with public-blockchain networks. The three main business lines that the Company is pursuing are: (1) development of custom AI software for enterprise clients, (2) operation of blockchain validator hardware that supports AI networks and (3) investment in AI-related digital currencies tokens to primarily operate validator hardware. The Listing Statement under the heading "Quarterly Information" provided certain historical financial information, including historical revenue disclosure, which related to the food business. Although some historical general and administrative expenses which relate to the operation of a public company may continue to apply to the new technology and blockchain business, the historical financial information relating to the food business and particularly the revenues of the food business are not applicable to the Company following the change of business and historical performance is not indicative of the Company's future performance. As of the date of this news release, the Company has not generated any revenue from its blockchain business lines (as set out below).

Since completion of the change of business, the Company has made the following advancements in each of its business lines:

• AI Agent Development: The Company has engaged a team of technical consultants to develop the Company's AI software and the team has completed an initial version of Intelliscope for beta testing. Please refer to the disclosure above for disclosure regarding the current status of Intelliscope's development, testing and plans for customer acquisition. As the Company's AI software is still in the beta testing phase, the Company has not yet generated any revenue from its AI software initiatives.
   
• Validator Operations: The Company has also successfully deployed its technical infrastructure, specifically it has set-up and has operational an initial set of validator nodes and custody systems and that the Company has tested these systems with the results indicating the infrastructure is capable of supporting digital asset participation securely and at scale. The Company's validator infrastructure connected to the Fetch.ai network, which can be viewed publicly at validator address: fetchvaloper1mm4aa88daqg9ah9fd20ae08zlwg33dxg99856x. The Company has not yet staked its own assets and as a result, no validator rewards or yields have been generated. However, it plans to begin staking following the closing of the Financing.
   
• Token Investment and Staking: The Company has acquired $64,882.77 of stablecoins (USDC). These stablecoins are held in custody and are considered cash equivalents pegged to USD, allowing the Company to efficiently pay vendors, consultants, and service providers, many of whom prefer stablecoin payments over traditional bank wires due to speed, cost, and compatibility with blockchain-based services. In addition to facilitating payments, stablecoins provide a pathway for the Company to acquire other digital assets, including FET, and to participate in decentralized finance (DeFi) ecosystems. This is particularly relevant to the Company's AI Agent technology, which is being developed for deployment within blockchain-based environments (for example Intelliscope which is developed within the FET token ecosystem) where validator operations and smart contract interactions are required. The use of stablecoins also aligns with the Company's broader strategy to finance initiatives such as validator infrastructure, AI Agent development, and digital asset acquisitions. Upon completion of the Financing, the Company intends to make its first purchases of digital assets with a focus on acquiring FET.

The Company's plans for further development of its blockchain business lines is as follows:

1. AI Agent Development . The Company plans to create custom AI software systems called "AI Agents" for businesses. These are intelligent software programs that can perform specific tasks automatically. Intelliscope, which is disclosed above, is the first example of AI software that the Company has developed. The Company intends to deliver these solutions either as one-time projects or ongoing subscription services with the goal of generating revenue comes from implementation fees and monthly subscription payments. Once the Company onboards clients, it will work clients to identify specific business processes that can benefit from AI automation. Projects typically include: (i) requirements analysis and solution design; (ii) AI model development and training; (iii) integration with existing business systems; and (iv) testing and deployment. For clients requiring ongoing AI capabilities, the Company intends to offer subscription-based services: (i) monthly access to AI tools and capabilities; (ii) continuous model updates and improvements; (iii) technical support and maintenance; and (iv) performance monitoring and optimization.
   
   
2. Validator Operations . The Company seeks to operate specialized computers called "validators" that verify transactions on blockchain networks focused on AI applications. Validators are essentially digital accountants that check and approve transactions on these networks. When the Company operates a validator, the Company can earn rewards in the form of digital currencies (tokens). Additionally, other token holders can "delegate" their tokens to the Company's validators, and the Company may take a commission on the rewards earned.
   
   Transaction processing validators collect, verify, and process transactions on the network. When someone sends tokens or executes a smart contract, validators ensure the transaction is legitimate and add it to the blockchain. Many blockchain networks use "decentralized governance" where token holders vote on network changes. Validators often participate in this governance by voting on proposals such as: (i) technical upgrades to the network; (ii) changes to reward rates; and (iii) new features or capabilities. Validators can earn money through: (i) block rewards: payment for processing transactions and creating new blocks; (ii) transaction fees: small fees paid by users for each transaction; and (iii) delegation rewards: commission earned when others stake tokens with the validator. The amount of influence a validator has (and rewards they earn) depends on how many tokens are staked with them, either by the validator operator or by others who delegate tokens to them.
   
   
3. Token Investment and Staking . The Company intends to purchase, and intends to utilize for operations, tokens from projects building decentralized AI infrastructure. These tokens will be "staked" - temporarily locked up to support network operations - in exchange for earning additional tokens as revenue. The aim is to create a steady income stream similar to earning interest on a deposit. Some tokens have lock-up periods during which they cannot be sold, but they continue generating rewards during this time. The rewards from staking varies based on a number of factors such as lock-up period and validator/node used.

The Company does not intend to manufacture hardware or develop its own blockchain technology. Instead, the Company intends to purchase existing equipment from established suppliers and configure it to support decentralized AI networks. The business model focuses on providing practical AI solutions to traditional industries while participating in the infrastructure that powers next-generation AI systems.

Company use of AI Systems

Intellistake intends to utilize AI systems to automate data verification and task orchestration within proof-of-stake blockchain networks. As discussed above, Intellistake is presently beta testing Intelliscope, which uses artificial-intelligence agents to automate data-verification functions and task orchestration within proof-of-stake blockchain networks. The Company does not intend to employ generative AI in any consumer-facing product at this time, as its focus is on enterprise clients. The data sets used for model training consist exclusively of (i) publicly available blockchain telemetry and (ii) open-source code repositories; no personal data or other restricted data sets are utilized. All AI development activities are conducted internally by the Company's engineering personnel, with the support of third party contractors, through the use of commercially available machine-learning libraries, and no exclusive third-party AI licences have been executed. Governance of AI-related risk is overseen by the Board of Directors.

Regulated Access to AI and Blockchain for Traditional Investors

Intellistake provides traditional investors with regulated access to the intersection of AI and blockchain technology through its listing on the Canadian Securities Exchange ("CSE"). By operating as a publicly traded company, Intellistake enables investors to participate in the growth of decentralized AI and blockchain infrastructure without the need to directly manage digital asset wallets or private cryptographic keys. In particular, in order to access the fetch.ai ecosystem, FET tokens are required. This structure removes significant technical barriers that have historically prevented broader participation in these emerging sectors. Traditionally, early-stage access to private AI and blockchain companies has been limited to venture capitalist and other well-connected investors. Intellistake democratizes this access by offering exposure through familiar stock exchange mechanisms, subject to the oversight and regulatory requirements applicable to public companies in Canada.

Bridging the Institutional Access Gap Through Stock Exchange Mechanisms

Intellistake acts as a bridge for investors seeking regulated exposure to the rapidly evolving fields of decentralized AI and blockchain. As a CSE listed issuer, the Company seeks to provide a transparent and accessible vehicle for both retail and institutional investors to gain exposure to these technologies. Investors can buy and sell shares of Intellistake using their existing brokerage accounts, eliminating the need for specialized knowledge or infrastructure related to digital assets. This approach aims to address the institutional access gap by making participation in the decentralized AI and blockchain ecosystem available to a wider audience, under the regulatory framework governing public companies.

Blockchain Infrastructure

Intellistake is focused on bridging traditional capital markets with decentralized AI and blockchain infrastructure. Intellistake's blockchain infrastructure operations involve the acquisition, configuration, and management of validator hardware. The Company does not manufacture hardware but sources industry-standard components to operate nodes on decentralized AI-focused blockchain networks. The Company aims to operate specialized computers called "validators" that verify transactions on blockchain networks focused on AI applications. Validators are essentially digital accountants that check and approve transactions on these networks.

The Company's validator operations are hosted on distributed cloud infrastructure with physical servers located across North America and Europe. This approach ensures geographic redundancy and operational resilience, while also supporting the Company's strategy of contributing to network decentralization. Unlike reliance on a single jurisdiction or facility, leveraging distributed cloud infrastructure allows the Company to maintain flexibility, reduce concentration risk, and align its operations with the decentralized nature of the networks in which it participates. The Company's validator operations are hosted on distributed cloud infrastructure with physical servers located across North America and Europe. This approach ensures geographic redundancy and operational resilience, while also supporting the Company's strategy of contributing to network decentralization. Unlike reliance on a single jurisdiction or facility, leveraging distributed cloud infrastructure allows the Company to maintain flexibility, reduce concentration risk, and align its operations with the decentralized nature of the networks in which it participates.

About Intellistake

Intellistake Technologies Corp. (CSE: ISTK) provides software solutions that leverage decentralized AI infrastructure to deliver enterprise-grade intelligence. Through validator operations, strategic token participation, and the development of enterprise AI agents, Intellistake bridges the gap between emerging decentralized networks and real-world industry adoption.

For additional information on the business of Intellistake please refer tohttps://www.intellistake.ai/.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" concerning anticipated developments and events related to the Company that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, all statements in respect of the Company's growth and development, the operations and business segments of the Company, support for decentralized AI and blockchain networks, the Company's development of its technology, the functionality of its technology, testing of its technology, customer acquisitions, revenue generation and related matters, the expectations for the Financing, the use of proceeds of the Financing and the plan to divest the historical food business.

In certain cases, forward-looking information can be identified by the use of words such as "expects", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "would", or "might" suggesting future outcomes, or other expectations, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain assumptions regarding, among other things, the Company will continue to have access to financing until it achieves profitability; the technology and blockchain industries in which the Company intends to focus its business in will grow at the rate and in the manner expected; the ability to attract qualified personnel; the success of market initiatives and the ability to grow brand awareness; the ability to distribute Company's services; the Company creates strategies to mitigate risks associated with cryptocurrency price fluctuations; the Company remains compliant with all applicable laws and securities regulations; the Company engages and collaborates with local experts, as necessary, to address jurisdiction-specific matters and ensures compliance with foreign regulations to avoid penalties; the Company addresses any potential cybersecurity threats promptly and effectively; the ability of the Company to develop its technology, acquire customers and have revenue; the ability to successfully deploy the new business strategy as a result of the change of business. While the Company considers these assumptions to be reasonable, they may be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed by the forward-looking information. Such factors include risks related to general business, economic and social uncertainties; failure to raise the capital necessary to fund its operations; inability to create strategies to mitigate the risks associated with cryptocurrency price fluctuations; the costs of regulation in the digital asset industries increase to the extent that the Company is no longer generating sufficient returns for shareholders; failure to promptly and effectively address cybersecurity threats; insufficient resources to maintain its operations on a competitive basis; and the actual costs, timing and future plans differs expectations; legislative, environmental and other judicial, regulatory, political and competitive developments; the inherent risks involved in the cryptocurrency and general securities markets; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the Company's success may depend on the continued involvement of key personnel, including advisors, whose involvement cannot be guaranteed; institutional adoption of decentralized AI infrastructure remains uncertain and may not occur at the pace or scale anticipated; evolving regulatory frameworks, including those related to AI (such as Canada's proposed Artificial Intelligence and Data Act), may impose additional compliance burdens or restrict certain business activities; valuation figures are based on publicly available market data and internal assessments at the time of the referenced transactions and may not reflect current or future valuations; the volatility of digital currency prices; the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties; delay or failure to receive regulatory approvals; failure to attract qualified personnel, labour disputes; and the additional risks identified in the "Risk Factors" section of the Company's filings with applicable Canadian securities regulators.

Although the Company has attempted to identify factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update forward-looking information.

SOURCE Intellistake Technologies Corp.