How does the conversion price of the new Units compare to the current market price of AXE shares?

The Units are being issued at a deemed price of $0.10 per Unit. As of the latest market data (mid‑August 2025), AX E’s common shares are trading in the $0.30‑$0.40 range on the TSX‑V. Consequently, the conversion price of the new Units is roughly 25‑30 % below the current market price of AXE shares.

From a fundamentals perspective, issuing the Units at a deep discount provides the company with cheap capital to settle the $186 k of accrued fees and interest, but it also creates a dilution risk if the Units are later converted into common equity. Technically, the discount creates a support level around $0.10‑$0.12, where the market may find buying interest from investors who view the conversion as a “built‑in” upside. If the price remains well above the $0.10 floor, the conversion is unlikely to trigger immediate downward pressure; however, any significant price drop toward the $0.10 level could accelerate conversion activity and increase supply of shares.

Actionable take‑aways

1. Long‑biased: The discount offers a modest upside catalyst—if the market stays above $0.10, the conversion is effectively out‑of‑the‑money, allowing the stock to trade on its fundamentals without conversion‑driven dilution. Consider a modest long position with a stop just below $0.30 to protect against a slide toward the conversion floor.
   
2. Watch for dilution triggers: Monitor the company’s conversion timetable and any announcements about the timing of the Units’ conversion. A move toward $0.10 could signal impending conversion, prompting a short‑cover or defensive positioning.
   
3. Liquidity & volatility: Expect modest short‑term volatility as the market digests the $0.10 issuance; volume spikes around any conversion‑related news could create short‑term trading opportunities.
   

Overall, the $0.10 conversion price is a significant discount to the current market price, and unless the share price erodes toward that level, the issuance should act as a net positive for AXE’s capital structure with limited immediate downside.