Sixty-Six Capital (CSE:SIX, OTC:HYHDF) entered into a short-term financing and BTC settlement agreement dated August 25, 2026 with K33 Holding AS, a subsidiary of K33 AB. The Company borrowed USDC 2,000,000 (approximately CAD$2,766,448.63) at 6.95% annual interest, maturing on September 30, 2026. Proceeds will be used to acquire 24.90273595 BTC, with K33 entitled to sell this BTC and apply proceeds to principal and interest if the Loan is not repaid at maturity.

The transaction is a related party deal under MI 61-101 because K33 is a control person. According to the Company, it relies on valuation and minority approval exemptions for loans on reasonable commercial terms and not convertible into equity, and did not file a 21-day prior material change report due to timing considerations.

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Positive

• Short-term financing of USDC 2,000,000 secured at 6.95% interest
• Clear maturity date of September 30, 2026 limits long-term debt exposure
• Loan proceeds immediately deployed to acquire 24.90273595 BTC
• Company states terms are on reasonable commercial basis and non-convertible

Negative

• Very short loan tenor with full repayment due by September 30, 2026
• Related party loan from control person K33 under MI 61-101
• K33 may sell the acquired BTC if the Loan is unpaid at maturity
• No material change report filed 21 days before closing of related party transaction