Kadestone Capital reports Q2 2026 results; signs letter of agreement

Vancouver, British Columbia--(Newsfile Corp. - August 10, 2026) - Kadestone Capital Corp. (TSXV: KDSX) (" Kadestone " or the " Company "), a vertically integrated property company, today announced its financial results for the six months ended June 30, 2026.

Financial Results

For the six months ended June 30, 2026, the Company reported a net loss of $3,096,690, or $0.07 per share, compared to a net loss of $3,074,378, or $0.07 per share, for the same period in the prior year. The increased loss was primarily driven by operating expenses including salaries and wages of $1,102,186, interest expense of $616,596, and loss from associates totaling $385,325, which was offset by a decrease in consulting fees which totaled $551,686.

Net cash used in operating activities decreased, declining to $1,971,861 for the six months ended June 30, 2026, compared to $2,733,134 in the prior year due primarily to the timing of the payment of accounts payable and accrued liabilities.

The above unaudited financial information, including comparative information, is expressed in Canadian dollars and has been prepared in accordance with IFRS Accounting Standards, using the accounting policies and methods of application as described in notes 2 and 3 of the Company's audited consolidated financial statements for the years ended December 31, 2025 and 2024.

Letter of Agreement

On August 6, 2026, the Company, together with Attollo Management Inc. and Isthmus Projects Inc., entered into a Letter of Agreement (the "LOA") with a British Columbia First Nation and related entities regarding the proposed real estate development of a future master-planned community. The LOA establishes a framework for negotiating definitive partnership agreements and remains subject to the satisfaction of certain conditions precedent. No partnership has been formed or ownership interest acquired at this time.

Under the LOA, the Company has agreed to advance funds for certain predevelopment, land carrying and project costs during the planning period. These advances are refundable if definitive partnership agreements are not executed, provided the Company has fulfilled its obligations under the LOA. Upon execution of the definitive agreements and satisfaction of the applicable conditions precedent, the advances are expected to be applied in accordance with the partnership agreements.

About Kadestone

Kadestone was established to pursue the investment in, acquisition, development and management of residential and commercial income producing properties, and procurement and sale of building materials within major urban centres and high-growth, emerging markets in Canada. The Company operates five complementary business lines spanning building materials procurement and supply, property development and construction, construction finance, asset ownership and property management. These synergistic business lines have solidified Kadestone's vision to become a market leading vertically integrated property company. Additional information can be found at www.kadestone.com .

For further information please contact David Negus, CFO, Kadestone Capital Corp., dnegus@kadestone.com , 604 671-8142

ON BEHALF OF THE BOARD

(signed) "Kevin Hoffman"

CEO and Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Statements

Certain information in this press release, including, but not limited to, statements regarding the Company's objectives, goals and future plans, including the Company's ability to identify opportunities and secure additional investments and the Company's vision to become a leading vertically integrated property company, may constitute forward-looking information (collectively, "forward-looking statements"), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Because of various risks and uncertainties, including those referenced below, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. As a result, you should not rely on such forward-looking statements. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations and assumptions relating to Kadestone's ability to receive sufficient financing to execute its business objectives or plans on acceptable terms or at all; Kadestone's ability to realize the anticipated benefits for its synergistic business lines; and the stability of the financial and capital markets. Additional information identifying assumptions, risks and uncertainties relating to Kadestone is contained in Kadestone's filings with the Canadian securities regulators available at www.sedarplus.ca . These risks include, but are not limited to, Kadestone's requirement of significant additional capital; Kadestone's ability to receive sufficient financing to execute its business objectives or plans on acceptable terms or at all; and those other risks and uncertainties described in the "Risk Factors" section of the Company's final prospectus dated September 2, 2020, and in the Management's Discussion and Analysis for the years ended December 31, 2025 and 2024. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308862

Newsfile Corp.

August 10, 2026 - 5:56 AM PDT

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