Intellistake CEO Issues Corporate Update and Letter to Shareholders on Progress Toward Closing the NanoAi Acquisition

VANCOUVER, BC, Nov. 4, 2026 /CNW/ -- Intellistake Technologies Corp. (CSE: ISTK) (OTCQB: ISTKF) (FSE: E41) ("Intellistake" or the "Company"), provides the following letter to shareholders from Chief Executive Officer Jason Dussault, with an update on the Company's proposed acquisition of NanoAi Technologies Inc. ("NanoAi"), as first announced in the Company's news release dated August 4, 2026 (the "Transaction").

Highlights

• Closing status: Based on progress by Intellistake and NanoAi in satisfying the closing conditions set out in the definitive agreement, it is expected that the Transaction will close during November 2026
• Standoff detection on camera: NanoAi's sensor registered Targeted Explosive Threat 001 at a 10-foot standoff in 0.80 seconds, without physical contact, in laboratory testing recorded on video
• 2,000-plus successful tests: More than 2,000 successful standoff detection tests against Threat 001 since testing began on October 8, 2026
• A second explosive, the same sensor: NanoAi has since detected Targeted Explosive Threat 002, a different explosive, at standoff using the same sensor. Testing of a third explosive is underway
• Gentex RAILINK: NanoAi has taken possession of Gentex's full Ops-Core RAILINK Power and Data ARC Rail System and commenced hands-on development work
• Board: On closing, NanoAi founder Craig Micklich, a 12-year U.S. Navy SEAL veteran, and a second NanoAi nominee will join the Intellistake Board

Letter to Shareholders

Dear Shareholders,

Every operator who has walked toward a suspected device has wanted the same thing: to know before contact. Since we announced our agreement to acquire NanoAi twelve weeks ago, that has moved from ambition to on-camera results, with two different explosives detected at standoff by the same sensor. This letter sets out exactly where closing stands.

Where closing stands

Closing depends on the satisfaction of waiver of closing conditions set out in the definitive agreement for the Transaction. Intellistake and NanoAi have been diligently working towards the satisfaction of these conditions. Based on progress, the plan is to close the Transaction during this month.

What has been built while closing work continues

We have not waited for closing to start building. Since August, NanoAi, with Intellistake's support, has delivered the following, each reported in a news release at the time:

• August 11: We published an overview of the peer-reviewed science behind NanoAi's detection process, published in Scientific Reports, part of the Nature Portfolio
• August 19: NanoAi signed a lease for its dedicated Op Center in the Dallas-Richardson technology and defense corridor
• October 6: NanoAi's Navy SEAL-led leadership team was put in place at the Op Center, and we released the NanoAi founder video
• October 8: Laboratory testing began against Targeted Explosive Threat 001
• October 12 to 14: Craig and I met prospective defense customers at AUSA 2026 in Washington, D.C.
• October 13: NanoAi took possession of Gentex's full Ops-Core RAILINK Power and Data ARC Rail System and began hands-on development work toward integration
• October 15: NanoAi's sensor registered Threat 001 at a 10-foot standoff in 0.80 seconds, without physical contact. The test was recorded on camera and can be viewed here: https://www.youtube.com/watch?v=vIJezZGDUYQ
• October 22: After more than 2,000 successful standoff tests against Threat 001, NanoAi moved to a second explosive, Threat 002, ahead of its own testing roadmap
• October 27: We relaunched intellistake.com and expanded our brand around standoff threat detection
• October 29: The same sensor detected Threat 002 at standoff, with no change to the hardware. Threats 001 and 002 are the first two entries in NanoAi's developing threat library, and testing of a third explosive is underway

That is twelve weeks of work, carried out in parallel with the closing process.

The lab is where defense technology earns its credibility, and these are the results NanoAi set out to prove first. The next step is carrying them forward: integration work on the Gentex RAILINK platform, further threats added to the library, and continued conversations with the prospective defense customers we met at AUSA. We will report each milestone as it is reached.

Our corporate evolution

Intellistake began as an AI software development company. NanoAi is a natural business line addition as we expand into defense software and hardware. NanoAi brings standoff detection of explosives, ammunition and narcotics, without physical contact. Intellistake brings the software and data layer that turns sensor readings into decisions. Together, the aim is one platform that can be mounted wherever the threat moves: on operators, on vehicles, at fixed sites and on unmanned systems.

When the Transaction closes, Craig Micklich will join our Board. Craig spent 12 years as a U.S. Navy SEAL before building NanoAi, and he knows the operator problem first-hand.

I know many of you have been waiting to see this one cross the line, and I want you to know that patience has not been wasted. What arrives at closing is not the company we announced in August. It is further along, better proven and better positioned than it was on the day we signed.

We are close. When we get there, Intellistake will bring together a sensor that detects what no human sense can perceive and the intelligence layer that turns that detection into a decision, before anyone is in harm's way. I have never been more confident in where this company is going, and I look forward to sharing the next chapter with you.

Thank you for believing in what we are building.

Jason Dussault Chief Executive Officer Intellistake Technologies Corp.

About Intellistake

Intellistake Technologies Corp. (CSE: ISTK) (OTCQB: ISTKF) (FSE: E41) is an AI infrastructure and technology company developing AI agents, enterprise software and data infrastructure designed to turn real-world information into actionable intelligence. The proposed acquisition of NanoAi is intended to expand the Company's technology platform into AI-enabled defense, advanced sensing, autonomous systems and connected soldier technology.

The proposed acquisition of NanoAi was announced on August 4, 2026. Upon completion, NanoAi would become a wholly owned subsidiary of Intellistake while continuing to hold its existing license and development relationship with Gentex. Completion remains subject to the conditions described in the Company's August 4, 2026 news release, and there can be no assurance that the transaction will be completed on the terms currently contemplated, or at all.

For additional information, visit www.intellistake.com.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward looking information contained in this news release includes, but is not limited to, all statements regarding the proposed acquisition of NanoAi and its anticipated benefits and closing timeline; NanoAi's technology and development activities, including the anticipated integration of NanoAi's sensing technology with RAILINK-equipped platforms and the anticipated nature, extent and timing of development work with Gentex; potential applications of NanoAi's sensing platform; the anticipated evolution of headborne and soldier systems; anticipated market opportunities; the Company's artificial intelligence capabilities; the potential benefits of combining Intellistake's artificial intelligence infrastructure with NanoAi's sensing technology; and the expected results of the NanoAi testing.

In certain cases, forward-looking information can be identified by the use of words such as "expects", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "would", or "might" suggesting future outcomes, or other expectations, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain assumptions regarding, among other things, the Company will continue to have access to financing until it achieves profitability; the Company and NanoAi satisfy all conditions necessary to close the proposed transaction; the maintenance in good standing of NanoAi's license and development collaborator status with Gentex; the parties' ability to develop, test, integrate and commercialize their respective technologies; the continued development and adoption of AI-enabled defense systems; the ability to establish and maintain customer, development and strategic relationships; the technology and blockchain industries in which the Company intends to focus its business in will grow at the rate and in the manner expected; the ability to attract qualified personnel; the success of market initiatives and the ability to grow brand awareness; the ability to distribute Company's services; the Company creates strategies to mitigate risks associated with cryptocurrency price fluctuations; the Company remains compliant with all applicable laws and securities regulations and applicable licensing requirements; the Company engages and collaborates with local experts, as necessary, to address jurisdiction-specific matters and ensures compliance with foreign regulations to avoid penalties; the Company addresses any potential cybersecurity threats promptly and effectively; the ability of the Company to develop its technology, acquire customers and have revenue; the ability to successfully deploy the new business strategy as a result of the change of business. While the Company considers these assumptions to be reasonable, they may be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed by the forward-looking information. Such factors include risks related to general business, economic and social uncertainties; failure of the Company and NanoAi to satisfy all conditions necessary to close the proposed transaction; failure to raise the capital necessary to fund its operations; failure of NanoAi's technology will achieve the performance characteristics contemplated, successfully complete development, testing or integration with RAILINK-equipped platforms; failure to achieve commercial adoption or generate revenue; inability to create strategies to mitigate the risks associated with cryptocurrency price fluctuations; the costs of regulation in the digital asset industries increase to the extent that the Company is no longer generating sufficient returns for shareholders; failure to promptly and effectively address cybersecurity threats; insufficient resources to maintain its operations on a competitive basis; and the actual costs, timing and future plans differs expectations; legislative, environmental and other judicial, regulatory, political and competitive developments; the inherent risks involved in the cryptocurrency and general securities markets; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the Company's success may depend on the continued involvement of key personnel, including advisors, whose involvement cannot be guaranteed; institutional adoption of decentralized AI infrastructure remains uncertain and may not occur at the pace or scale anticipated; evolving regulatory frameworks, including those related to AI (such as Canada's proposed Artificial Intelligence and Data Act) and prediction markets, may impose additional compliance burdens or restrict certain business activities; valuation figures are based on publicly available market data and internal assessments at the time of the referenced transactions and may not reflect current or future valuations; the volatility of digital currency prices; the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties; delay or failure to receive regulatory approvals; failure to attract qualified personnel, labour disputes; and the additional risks identified in the "Risk Factors" section of the Company's filings with applicable Canadian securities regulators.

Although the Company has attempted to identify factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update forward-looking information.

Market size and growth figures referenced in this news release are third-party industry estimates provided for contextual purposes only. Such estimates may differ materially depending on market definition, methodology, geographic scope and forecast assumptions, and should not be interpreted as forecasts of Intellistake's or NanoAi's future revenues, market share or financial performance. Statements attributed to Gentex or other third parties are based on publicly available materials, and the Company has not independently verified such information.

SOURCE Intellistake Technologies Corp.

Company Contact Alice Cherrington, VP of Communications, [email protected], [phone]