v3.26.1
Stockholders' Equity
6 Months Ended
Jun. 30, 2026
Stockholders' Equity  
Stockholders' Equity

11.   Stockholders’ Equity

Capitalization

Preferred Stock

Par value: $0.0001
Authorized: 20,000,000
Issued: 1,000,000 shares were outstanding as of June 30, 2026 and December 31, 2025

Common Stock

Par value: $0.0001
Authorized: 850,000,000
Issued: 617,025,999 shares are outstanding as at June 30, 2026 and December 31, 2025

As of June 30, 2026, convertible notes and preferred stock outstanding could be converted into 49,822,208 (December 31, 2025: 36,361,915) and 100,000,000 (December 31, 2025: 100,000,000) shares of common stock, respectively.

Preferred Stock

Shares of preferred stock may be issued from time to time in one or more series as may be determined by the board of directors. The board of directors may fix the designation, powers, preferences and rights of the shares of each such series and the qualifications, limitations or restrictions thereof without any further vote or action by the stockholders of the Company, except that no holder of preferred stock shall have pre-emptive rights. Any shares of preferred stock so issued would typically have priority over the common stock concerning dividend or liquidation rights. The board of directors does not at present intend to seek stockholder approval prior to any issuance of currently authorized stock unless otherwise required by law.

Series A Preferred Stock (“Series A Stock”)

Dividends shall be declared and set aside for any shares of Series A Stock in the same manner and amount as for the Common Stock. Series A Stock, as a class, shall have voting rights equal to a multiple of 2X the number of shares of Common Stock issued and outstanding that are entitled to vote on any matter requiring shareholder approval. The Series A Stockholders shall not vote as a separate class but shall vote together with the common stock on all matters, including any amendment to increase or decrease the authorized capital stock. Upon the voluntary or involuntary dissolution, liquidation or winding up of the corporation, the assets of the Company available for distribution to its shareholders shall be distributed to the holders of common stock and the holders of the Series A Stock ratable without any preference to the holders of the Series A Stock. Shares of Series A Stock can be converted at any time into fully paid and nonassessable shares of Common Stock at the rate of one hundred (100) shares of Common Stock for each one (1) share of Series A Stock.

Common Stock

Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the stockholders. Holders of common stock do not have cumulative voting rights.

Subject to preferences that may be applicable to any outstanding shares of preferred stock, the holders of common stock are entitled to share ratable in dividends, if any, as may be declared from time to time by the board of directors in its discretion from funds legally available therefore.

Holders of common stock have no pre-emptive rights to purchase the Company’s common stock. There are no conversion or redemption rights or sinking fund provisions with respect to the common stock. The Company may issue additional shares of common stock which could dilute its current shareholder’s share value.

Shares to be issued include the following:

Disclosure for shares to be issued:

  ​ ​ ​

Shares

  ​ ​ ​

Amount

  ​ ​ ​

Description

 

80,000 shares of common stock to be issued as compensation to advisers and consultants. These were recorded at fair value of $52,000, based on the market price of the Company’s stock on the date of issue.

Services

115,000

$

73,000

35,000 to be issued as settlement of the amount due for website development services amounting to $247,306. The fair value of the shares on the date of settlement was $21,000, resulting in a gain on settlement amounting to $226,306 during the year ended December 31, 2017.

Private placements

 

346,296

$

18,787

 

Consideration for private placements with the fair value based on cash proceeds received. Proper allocation between common stock and additional paid-in capital of the amount received will be completed in the period when the shares are issued.

Settlement of loans of CannaKorp

 

930,240

$

80,838

 

Refer to Note 8 for details.

Agreement with Serious Seeds

 

249,984

$

2,814

 

As consideration for intellectual property rights granted by Smit. The fair value is based on the market price of the Company’s stock on the date of issue as per the agreement.

 

1,641,520

$

175,439

Warrants

The warrants (with an exercise price in United States Dollar) were re-classified as a liability as of December 31, 2019, and therefore have been revalued on each quarter end. The fair value of the warrants was measured on reporting dates using the Black-Scholes option pricing model using the following assumptions:

2026

As of the period end June 30, 2026, there were no warrants outstanding, as all previously issued warrants had expired.

2025

  ​ ​ ​

As at

  ​ ​ ​

As at

  ​ ​ ​

As at

  ​ ​ ​

As at

December 31, 

September 30, 

June 30, 

March 31, 

2025

2025

2025

2025

Forfeiture rate

 

0%

0%

0%

0%

Stock price

$0.002

$0.002

$0.002

$0.002

Exercise price

$0.350

$0.350

$0.350

$0.350

Volatility

358%

358%

358%

358%

Risk free interest rate

3.59%

3.83%

3.96%

4.03%

Expected life (years)

0.05 to 0.68

0.01 to 1.93

0.01 to 1.18

0.01 to 1.43

Expected dividend rate

0%

0%

0%

0%

The fair value of the warrants issued during the year was measured at the date of acquisition using the Black-Scholes option pricing model using the following assumptions:

2026

As of the period end June 30, 2026, no warrants had been issued.

2025

During quarter

During quarter

During quarter

During quarter

ended

ended

ended

ended

  ​ ​ ​

December 31, 2025

  ​ ​ ​

September 30, 2025

  ​ ​ ​

June 30, 2025

  ​ ​ ​

March 31, 2025

Forfeiture rate

 

0%

0%

0%

0%

Stock price

$0.002 to $0.003

$0.002 to $0.003

$0.002 to $0.003

$0.002 to $0.003

Exercise price

$0.350

$0.350

$0.350

$0.350

Volatility

476%

476%

476%

476%

Risk free interest rate

4.10% to 4.98%

4.10% to 4.98%

3.66% to 4.60%

3.66% to 4.60%

Expected life (years)

2

2

2

2

Expected dividend rate

0%

0%

0%

0%

Fair value of warrants

$0

$0

$0

$0

As of the period end June 30, 2026, no warrants were outstanding.