DIAGNOS Debt Repayment
AI Eye Health Company DIAGNOS Settles C$125,000 Debt by Issuing New Shares
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Diagnos Inc. has announced it will issue 625,000 common shares at C$0.20 each to wipe out $125,000 in outstanding loans. The agreements were signed June 18, 2026, with the deal expected to close on June 25, according to Financial Post.
The Quebec-based company trades on the TSX Venture Exchange under the ticker ADK and builds AI tools for early eye disease detection. The newly issued shares will be locked up for four months and one day before they can be traded freely, Edmonton Sun reported.
Two Loans Erased Without Spending a Dollar
DIAGNOS entered into deals with two arm's-length lenders — meaning parties with no ties to the company's board — to convert $125,000 in demand loans into equity. Each share is priced at C$0.20, setting the total value of the deal at exactly $125,000. No cash will change hands, according to Calgary Sun.
By settling the debt with shares instead of cash, DIAGNOS keeps its money in the bank. The company says this lets it direct funds toward its core product: the CARA platform, which uses AI algorithms to screen patients for diabetic retinopathy through retinal images.
TSX Venture Rules Govern the Share Price and Lock-Up
The $0.20 issue price must meet TSX Venture Exchange minimum pricing rules. Under Exchange Policy 4.3, companies can issue shares to settle real debt, but the price must align with the stock's recent market value. TSX-V approval is required before the June 25 closing date, Financial Post noted.
Once issued, the shares carry a mandatory hold period — standard under Canadian securities law. The lenders cannot sell their new shares until late October 2026. That four-month-plus window means the lenders are betting the stock will hold or rise by then.
625,000 New Shares Add Less Than 1% Dilution
DIAGNOS had roughly 73.5 million shares outstanding before this deal. Adding 625,000 more represents a dilution of about 0.85% — a small slice of the total equity. Sudbury Star and other outlets carrying the announcement described the move as a straightforward balance sheet cleanup.
For the lenders, taking shares at $0.20 instead of cash is a calculated bet. If DIAGNOS stock climbs above that level before the hold period ends in late October, they will pocket a gain. If it falls, they absorb the loss — a risk that comes with equity in any micro-cap company.
CARA Platform Drives the Push to Preserve Cash
DIAGNOS built its business around CARA — Computer Assisted Retinal Analysis. The platform screens for signs of diabetic retinopathy and other conditions using retinal images fed through deep-learning models. The company lists on the TSX Venture Exchange as ADK, on the OTCQB as DGNOF, and on the Frankfurt exchange as 4D4A, according to Financial Post.
The official press release stated the settlement "allows the Corporation to preserve its cash position for operational purposes." Freeing up even $125,000 in cash can matter significantly for a micro-cap firm funding active clinical and commercial expansion.
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