BEACN Announces Creation of Loan Program

Not for distribution to United States Newswire Services or for dissemination in the United States

VICTORIA, BC / ACCESS Newswire / May 13, 2026 / BEACN Wizardry & Magic Inc. (TSX-V:BECN) ("BEACN" or the "Company") announces the creation of a shipment‑triggered loan program (the "Loan Program") and the closing of the first series under the Loan Program for an aggregate amount of $338,000 with Athlone Ltd. and Huang Quian 2008 Revocable Trust (together, the "Lenders").

The Loan Program is governed by a master loan agreement (the "MLA") and is intended to provide BEACN with non‑dilutive financing to enhance the production and shipment of finished goods inventory. Advances under the Loan Program may be made from time to time in one or more series, with each series structured as a separate borrowing under the MLA.

Amounts advanced under each series bear a fixed premium of 10% of funds advanced and are repayable from product sales over the applicable repayment period. Each series has a contractual maturity of up to twelve (12) months following the final shipment date of the applicable inventory. The Company may repay amounts outstanding under a series prior to maturity without penalty or premium. The Loan Program does not obligate the Company to draw a minimum amount, nor are there any standby fees.

Obligations under each series are secured by a general security agreement over most of the Company's assets.

Related Party Disclosure

Both Lenders are considered related parties of the Company. As a result, the entering into of the MLA with the Lenders constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Notwithstanding the foregoing, the directors of the Company have determined that the Lenders participation in the Loan Program is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in reliance on the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101. The Company did not file a material change report 21 days prior to the signing of the MLA as the details of the participation of the Lenders had not been confirmed at that time, and the Company wished to close on an expedited basis for sound business reasons.