Novra Technologies Inc. (TSXV: NVI) has issued an update disclosing that its previously announced binding US$5.3 million convertible loan agreement with SNAPS Holding Company has expired without Novra receiving any funds, and the company now considers SNAPS to be in default of its funding obligations. The announcement also confirms that all principal balances of loans previously owed to SNAPS have been fully converted into equity, with all accrued interest forgiven. A trading blackout affecting Novra's directors and officers related to these transactions is set to lift on October 13, 2026. Investors may be watching closely given SNAPS's position as an insider and control person holding 29.5% of Novra's issued and outstanding common shares.

Key Points

  • Novra Technologies Inc. (TSXV: NVI; OTCQB: NVRVF) is a Winnipeg-based multimedia broadband technology provider
  • The US$5.3 million convertible loan agreement with SNAPS Holding Company has expired with zero funds received; Novra considers SNAPS in default
  • Shareholders previously approved converting US$3,200,000 (CA$4,352,000) of convertible debt into 12,800,000 shares at CA$0.34 per share; all accrued interest was forgiven
  • Investors should watch whether SNAPS brings forward a proposal to address the default, as disclosed by Novra

SNAPS Debt Fully Converted to Equity Before Loan Agreement Collapse

At Novra's Annual General and Special Meeting held on June 26, 2026, shareholders approved the settlement of US$3,200,000, or CA$4,352,000, of the company's convertible debt through the issuance of 12,800,000 common shares to SNAPS at a deemed price of CA$0.34 per share. Following this issuance, and together with previously held shares, SNAPS came to own 14,802,944 shares, representing 29.5% of Novra's issued and outstanding common shares. The release confirms all principal balances have been fully converted and no amounts remain payable to SNAPS, with all accrued interest forgiven as part of the conversion.

US$5.3 Million Convertible Loan Expires With No Funds Received

The binding US$5.3 million convertible loan agreement, originally announced on February 11, 2026, has since expired. Novra states it did not receive any funds from SNAPS under this agreement and accordingly considers SNAPS to be in default of its funding obligations. The company notes it anticipates SNAPS will bring forward a proposal to address the default, but Novra is not currently engaged in discussions with SNAPS regarding any financing arrangements. The company did not disclose a timeline or specific terms for any potential resolution.

Director and Officer Trading Blackout Scheduled to End October 13, 2026

Novra's directors and officers are currently subject to a trading blackout related to these transactions. The release states this blackout will end on October 13, 2026, one week after the date of the update, following the expiry of the US$5.3 million loan agreement. The conclusion of the blackout period may be of interest to investors monitoring insider trading activity, though the immediate share price impact was not clear from available public information.