Core AI Completes Divestiture of Siyata Mobile

Core AI Holdings (CHAI) announced that it has simultaneously signed and closed a definitive agreement to divest Siyata Mobile (SYTA) and its subsidiaries. This transaction is effective immediately and represents a completed strategic action to streamline operations and concentrate capital and resources on Core AI's core artificial intelligence initiatives. Under the terms of the definitive agreement, Core AI is entitled to receive aggregate consideration consisting of initial consideration of $100,000 in cash, and earn-out consideration consisting of three separate annual earn-out payments. Each earn-out payment will equal the greater of $200,000 or 1% of gross revenue generated by Siyata during each applicable earn-out period, as reported in audited annual financial statements prepared in accordance with IFRS. Based on unaudited pro forma financial information as of September 30, 2025, the divestiture has the following impact on Core AI's financial profile: Net loss for the nine months ended September 30, 2025 was reduced from $12.5M to $4.8M, representing an $8.7M improvement, primarily driven by the removal of Siyata operating expenses. Total assets decreased from $51.6M to $31.6M, reflecting a $20M reduction associated with the divested business. Total liabilities decreased from $22.4M to $18.3M, a $4.1M improvement, further strengthening the Company's balance sheet.