Pegasus Granted Management Cease Trade Order

Vancouver: January 29, 2025 – Pegasus Mercantile Inc. (formerly Xtacy Therapeutics Corp.) (CSE: LOAN) (Frankfurt: TT5) (OTC: XTCYF) (“the Company) announces today that it has missed its filing deadline of January 28, 2025, to file its audited annual financial statements and accompanying management’s discussion and analysis and related CEO and CFO certificates for the year ended September 30, 2024 (collectively, the “Annual Filings”), as required under applicable Canadian securities laws.

In connection with the Company’s inability to file the Annual Filings on time, the Company applied for a Management Cease Trade Order (“MCTO”) under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”) and the British Columbia Securities Commission has issued its approval. The Company applied for the MCTO as a result of a change of directors and its’ audit committee chair in conjunction with installing new procedures, in October 2024, due to an increase in the Company’s client base and M & A work discussions. This has impacted the Company’s ability to complete its audited annual financial statements and has consequently caused a delay in completion of the Annual Filings. Although the Company remains confident in its ability to complete the 2024 Filings, it requires an extension and has therefore applied for the MCTO. In particular, the Company is coordinating specific tasks to be completed on a daily basis and will use its best efforts to complete the process within this timeline. The Company anticipates that, subject to current conditions remaining the same, it will require approximately four additional weeks to complete the process and will use its best efforts to complete the process within the timeline indicated.

The Company expects to file the Annual Filings as soon as they are available, but in any event no later than March 31, 2025. Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports, in the form of news releases, for so long as the Annual Filings have not been filed. During the MCTO, the general investing public will continue to be able to trade in the Company’s common shares listed on the Canadian Securities Exchange. However, the Company’s Chief Executive Officer and Chief Financial Officer and such other directors, officers and persons as determined by the applicable regulatory authorities will not be able to trade in the Company’s shares, nor will the Company be able to, directly or indirectly, issue securities to or acquire securities from an insider or employee of the Company until such time as the Annual Filings and all continuous disclosure requirements have been filed by the Company, and the MCTO has been lifted.

The Company confirms as of the date of this news release that there is no insolvency proceeding against it and there is no other material information concerning the affairs of the Company that has not been generally disclosed.

About Pegasus Mercantile:
Pegasus is a prospect generator that provides high growth companies with financial, operational, and management assistance in the fast growing market for wellness consumer products. The focus of the Company is on global wellness, psychedelics, mycology, hemp and CBD, healthcare-related target companies and their clinical studies and trials.

Further information about the Company is available on www.SEDARplus.com under the Company’s profile.

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