FeralX Systems Inc. Announces TSX Venture Exchange Listing and Closing of Oversubscribed Offering

Vancouver, British Columbia--(Newsfile Corp. - October 16, 2026) - FRLX Systems Inc. (TSXV: FRLX) ("FRLX" or the "Company") is pleased to announce that, effective at the opening of trading on Monday, October 19, 2026, its common shares will be listed on the TSX Venture Exchange (the "TSXV"). The Company will be classified as an "all other miscellaneous fabricated metal product manufacturing" company.

Completion of Oversubscribed Offering

Further to the Company's news releases dated, July 17, 2026, September 15, 2026, and October 1, 2026, on October 14, 2026, the Company closed its previously announced offering of Units at a price of C$0.60 per Unit (the "Offering"). The Offering was oversubscribed and the Company issued an aggregate of 9,031,170 Units for aggregate gross proceeds of $5,418,702 achieving the maximum raise contemplated in its filing statement dated August 31, 2026.

Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share of the applicable issuer at an exercise price of C$1.00 per share for a period of 24 months from the date of issuance.

The majority of the net proceeds of the Offering are expected to be used to purchase capital equipment and fund overhead expenses for the next twelve months, including rent and facilities costs, payroll and G&A costs. Any remaining unallocated funds are expected to be used to support the Company's business and working capital requirements.

Certain finder's fees were to paid Allyson Taylors Partners, Ventum Financial Corp. Designed Securities Ltd. and EMD Financial Inc. in connection with the Offering, consisting of a cash fee equal to 7% of the gross proceeds from persons introduced by the finders, as well as 348,138 broker warrants ("Broker Warrants"). Each Broker Warrant may be exercised to acquire one common share at C$1.00 for a period of two years.

Securities comprising Units that were subscribed directly into the Company are subject to a statutory hold period of four months and one day from the date of the applicable closing date. In addition, 28,142,818 common shares issued to Principals and certain non-principals in connection with its previously completed amalgamation announced in the Company's news release dated October 1, 2026, are subject to a Tier 2 Escrow Agreement to be released over a 36-month period.

Trading of FRLX Shares Commences Monday, October 19, 2026

Effective at the opening of trading on Monday, October 19, 2026, the common shares of the Company will be listed on the TSXV.

About FRLX Systems Inc.

FRLX Systems Inc. is a Canadian-controlled defence manufacturer headquartered in Ontario. The Company designs, builds and delivers weapon systems, autonomous platforms and precision components for government, military and law-enforcement customers, connecting operators, sensors and precision effects into one integrated mission ecosystem. FRLX operates across four lines: Armament, Autonomy, Mission Support and Manufacturing: www.FRLX.ca

For Further Information Contact:

Rob MacIntyre, [email protected]
705-241-8862

Forward-looking information

This news release contains forward-looking information, including statements regarding the expected use of proceeds of the Offering and the listing of the common shares of FRLX on the TSXV. Forward-looking information is based on expectations, estimates, projections and assumptions made as of the date of this release and is subject to risks and uncertainties that could cause actual results to differ materially, including the risk that FRLX is unable to allocate the proceeds of the Offering in the manner anticipated and the risk that the listing is delayed. Readers should not place undue reliance on forward-looking information, which is qualified in its entirety by this cautionary statement. FRLX undertakes no obligation to update forward-looking information except as required by applicable securities laws.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

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