What is the expected timeline for the special cash distribution and how will it affect the company's balance sheet?

Timeline – The special resolution was approved at the shareholder meeting on September 3, 2025. Under Ontario corporate law the company now has a 30‑ to 45‑day window to file the required reduction‑of‑stated‑capital paperwork with the Ontario Securities Commission and to prepare a distribution notice. In practice, most TSX‑V issuers complete the entire process within the next 45‑60 days, so investors should expect the first cash payout to be announced by mid‑October and the actual payment to occur in late Q4 2025 (typically in November–December). The board may tranche the $4 million ceiling over several distributions, but any initial payout will most likely be disclosed within the next month.

Balance‑sheet impact – The cash distribution will be accounted for as a reduction of both assets (cash) and the stated‑capital component of shareholders’ equity. Because it is a return of capital—not a dividend—it does not affect net income or retained earnings. Assuming the full $4 million is paid, total assets will fall by that amount and the “stated capital” line will be reduced by the same, leaving total equity lower by $4 million. Debt levels remain unchanged, so leverage ratios (debt‑to‑equity, debt‑to‑assets) will improve marginally, while the current‑ratio may tighten slightly as cash is removed. Book‑value per share will also decline proportionally, which often creates a short‑term price correction roughly equal to the per‑share cash paid out.

Trading implication – Markets typically price in the cash amount on the ex‑distribution date, so the stock may dip by roughly $0.10–$0.20 per share (depending on the final payout per share). Traders can look for a modest‑size, low‑volatility bounce in the days leading up to the announcement if the market has not yet fully priced the return of capital. A short‑term “buy‑the‑rumor, sell‑the‑news” play is viable: accumulate at current levels if the price is trading below the implied cash‑return premium, then consider exiting around the ex‑date or within a few days afterward to capture the distribution‑related price compression. Keep an eye on volume spikes and any guidance from the board regarding timing; a clear, early announcement often fuels a brief rally, whereas a delayed or ambiguous rollout can increase downside risk.