ZenaTech Files Early Warning Report Pursuant to National Instrument 61-103

ZenaTech sold its entire 14,973,718-share position in Plurilock Security on the TSXV on September 29-30 at C$0.21-C$0.22 per share, fully exiting its ownership stake. The sale follows ZenaTech's purchase of approximately 1.572 million Plurilock shares at C$0.11-C$0.13 between June 26 and July 2. The complete disposal may create near-term selling-pressure concerns for Plurilock shares, though the disclosed sale prices were materially above ZenaTech's most recently reported acquisition prices.

Analysis

ZENA’s exit converts a non-core, illiquid public-equity position into cash and removes any future mark-to-market exposure, but the economic significance cannot be assessed without ZENA’s original cost basis, proceeds, and cash balance. The more relevant signal is capital-allocation discipline: a full liquidation after a sharp move can modestly improve near-term liquidity for acquisitions or operating needs, yet it does not independently validate the economics of ZENA’s drone, SaaS, or quantum initiatives. Investors should look for the transaction’s treatment in the next financial statements—realized gain, cash received, and any related-party or strategic rationale—rather than extrapolating from the announcement.

For Plurilock, the loss of a roughly 15m-share strategic holder removes an identifiable overhang only after the block is fully absorbed; the near-term risk is that concentrated selling into TSXV liquidity has already pressured price discovery and could leave residual weakness if buyers were event-driven rather than fundamental. Over 1-3 months, PLUR’s trading behavior versus volume and its next revenue/cash-burn update will determine whether the shareholder-base transition is constructive or simply reflects weak institutional demand. This is not a read-through for QUBT: quantum-computing valuations and fundamentals have no demonstrated linkage to ZENA’s portfolio monetization.

Consensus may characterize the sale as straightforwardly bullish for ZENA because it monetizes an appreciated asset. The contrarian interpretation is that a small-cap issuer selling a liquidated investment may be signaling a need for financing flexibility; absent disclosure of net proceeds relative to quarterly operating cash burn, the balance-sheet benefit should receive little multiple credit. A meaningful upside rerating requires evidence that proceeds are redeployed into revenue-generating assets rather than used to bridge recurring cash consumption.

Key Decisions for Investors

• No directional QUBT trade: treat any sympathy move as non-fundamental; fade only if QUBT materially outperforms its quantum peer basket without company-specific news, with a tight risk limit around renewed sector-wide momentum.
• Maintain ZENA as a watch item rather than initiating on this disclosure. Reassess after the next filing: a realized gain and cash proceeds that cover at least 2-3 quarters of operating cash burn would support a tactical long; a capital raise or accelerating burn would falsify the liquidity-positive thesis.
• For investors able to trade TSXV names, monitor PLUR for a post-block stabilization setup over the next 2-6 weeks: consider a small long only if price holds above the disposal range on declining volume and the next earnings release shows improving gross margin or reduced cash burn. Exit on a break below the recent sale range or evidence of renewed equity financing.
• Do not assign a valuation multiple expansion to ZENA from the transaction alone. Require disclosure of deployment plans, acquisition returns, or measurable DaaS/SaaS revenue conversion within the next 1-2 reporting periods before increasing exposure.