New Risk • Jul 22
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 31% 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 Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$13.9m market cap, or US$9.83m). Minor Risk Share price has been volatile over the past 3 months (16% average weekly change). Announcement • Jul 21
Kapa Gold Inc. announced that it has received CAD 2.7868 million in funding On July 20, Kapa Gold Inc. has closed the transaction. The company issued 5,683,666 units at the price of CAD 0.15 for the gross proceeds of CAD 852,549.9. Bringing the total number of Units issued under the offering to 18,578,665 for aggregate gross proceeds of CAD 2,786,799.75. David Paxton, the CEO of Kapa Gold, acquired 300,000 Units under the Offering. There was no material change in Mr. Paxton’s percentage ownership of securities of the Company as a result of his participation in the offering. In connection with the offering, company paid aggregate finders fees of CAD 161,055 in cash and issued 1,073,700 finder warrants to Canaccord Genuity, Haywood Securities, Red Cloud Securities, Research Capital, Ventum Financial and Zuri-Invest AG. Announcement • May 29
Kapa Gold Inc. announced that it expects to receive CAD 2 million in funding Kapa Gold Inc. announces a non-brokered private placement to issue 13,333,333 units at a price of CAD 0.15 per Unit for gross proceeds of CAD 1,999,999.95 on May 28, 2026. Each Unit will be comprised of one common share of the Company and one transferable common share purchase warrant. Each Warrant will be exercisable to purchase an additional Share of the Company at an exercise price of CAD 0.25 for a period of 24 months from the closing date. Insiders of the Company will also subscribe for Units under the Private Placement. All securities issued in connection with the Private Placement will be subject to a statutory hold period of 4 months plus a day from the Closing Date in accordance with applicable securities legislation. Finder’s fees may be paid in connection with this Offering. Closing of the Private Placement is subject to the approval of the TSXV. 
