New Risk • Jan 08
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: CA$12.6m (US$9.09m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (54% average weekly change). Shareholders have been substantially diluted in the past year (59% increase in shares outstanding). Market cap is less than US$10m (CA$12.6m market cap, or US$9.09m). Announcement • Dec 31
Birchtree Investments Ltd. (CNSX:BRCH) executed a non-binding term sheet to acquire 50% stake in Digital Motion Corporation for $10 million Birchtree Investments Ltd. (CNSX:BRCH) executed a non-binding term sheet to acquire 50% stake in Digital Motion Corporation for $10 million on December 30, 2025. The consideration consists of common equity of Birchtree Investments Ltd. having a value of $10 million to be issued for common equity of Digital Motion Corporation. Based on the Consideration Shares being issued at CAD$0.20 per share and the Bank of Canada daily exchange rate as of December 24, 2025, subsequent to the proposed Transaction, the shareholders of ?Digital Motion will hold approximately 32.8% of the total issued and outstanding Birchtree Shares and existing shareholders of ? Birchtree will hold approximately 67.2% of the total issued and outstanding Birchtree Shares.
Closing of the Transaction is subject to execution of a definitive agreement in respect of the Transaction, satisfactory due diligence by each of the parties, receipt of all required third party, regulatory, stock exchange, board and shareholder approvals for the Transaction, including the approval of the CSE, and Birchtree having a net working capital position of not less than CAD$200,000. New Risk • Nov 05
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 59% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Shares are highly illiquid. Shareholders have been substantially diluted in the past year (59% increase in shares outstanding). Market cap is less than US$10m (CA$5.30m market cap, or US$3.76m). 
