Calgary, Alberta--(Newsfile Corp. - May 29, 2026) - Acceleware Ltd. (TSXV: AXE) ("Acceleware" or the "Company"), today announced its financial and operating results for the three months ended March 31, 2026 (all figures are in Canadian dollars unless otherwise noted). This news release should be read in conjunction with the Company's unaudited interim condensed financial statements and the accompanying notes for the three months ended March 31, 2026, and management's discussion and analysis ("MD&A") thereto, together with the audited financial statements for the year ended December 31, 2025, notes and MD&A thereto, all of which are available on Acceleware's website at www.acceleware.com or on www.sedarplus.ca.
Highlights
Financial Highlights
| Three Months Ended | |||
| March 31, 2026 | March 31, 2025 | ||
| Revenue | $ | 116,304 | 431,226 |
| Comprehensive loss | $ | (729,855) | (382,195) |
| R&D expenditures | $ | 340,807 | 420,829 |
Operating Highlights
Acceleware's goal is to enhance western Canadian resources by helping producers increase production and reduce operating costs by using the Corporation's innovative electromagnetic RF heating applications.
Heavy Oil with RF XL 2.0
As part of the previously announced strategy to drive shareholder value, Acceleware is securing a portfolio of potential sites (through farm-in agreements or asset acquisitions) for commercial demonstration of its next generation RF XL 2.0 technology. Acceleware has signed two such farm-in agreements and is in detailed discussion with several additional companies regarding multiple assets in both Saskatchewan and Alberta in geological horizons known as the "Lloydminster Mannville Stack". The Corporation is moving ahead with the RF XL 2.0 Pilot at a Saskatchewan farm-in location and has begun the application process with the Saskatchewan Ministry of Energy and Resources. Detailed design of the surface lease and well planning has commenced.
The Corporation is also working in parallel to secure federal and provincial government funding, and other financing to complete the project. Accordingly, the Corporation is in discussion with several potential industry and government funders. Acceleware has confirmed that the expected cost to complete the RF XL 2.0 Pilot would be approximately $5 million to $6 million including contingency. Recently the Corporation received conditional approval from the Saskatchewan Petroleum Innovation Incentive ("SPII") program. The SPII program would provide a transferable royalty credit equal to 25 percent of eligible project costs (including capital costs and the first two years of operating costs) from a future RF XL 2.0 Pilot carried out in the province. Approval is conditional on entering into a project agreement with Saskatchewan Ministry of Energy and Resources within two years. The Corporation has also applied for additional government funding for the RF XL 2.0 Pilot.
The RF XL 2.0 design is complete and ready for manufacturing and deployment. RF XL 2.0 includes a new, fully sealed, continuous tubing based sub-surface design developed by Acceleware. It eliminates the possibility of water ingress through a robust leak-proof design, dramatically simplifies deployment, and reduces per well capital costs by an estimated 30 percent compared to RF XL 1.0 as deployed at the Marwayne pilot. Further benefits of RF XL 2.0 include reduced manufacturing costs; reduced well design and well completion costs; quicker well completion time; simpler and less costly wellhead design; and a safer wellhead operating environment.
Critical Minerals and Amine Regeneration
In Q1 2026, the Corporation continued to work with the International Minerals Innovation Institute (IMII) and its participating members on a Phase 3A project for the design, construction and testing of a new, larger-scale prototype dryer for potash and potash fines. IMII's minerals industry members include BHP, Cameco Corporation, Mosaic Company, Nutrien Ltd., Fission Uranium Corp., and The Uranium Corp. Also during Q1 2026, Acceleware completed a second paid feasibility study contract from BHP for iron ore drying. Follow-on work from this and the previous study is expected in 2026. The Corporation began work on a paid feasibility study for heap leach heating, also from BHP, with work expected to be completed in 2026. Acceleware's engineering team completed additional lab testing of a proof-of-concept amine RF regeneration system for carbon capture and natural gas processing, with positive results. Discussions on potential Canadian and European Union collaboration and partnerships to further develop the technology are underway.*
Financings
On April 7, 2026, the Company settled the outstanding debt owed to the 10% unsecured convertible debenture holders (the "2022 Debentures") in the aggregate amount of $2,453,640, which amount represents the total principal outstanding plus accrued and unpaid interest. A portion of the debt was settled with units of the Company), through a shares-for-debt transaction, at a price of $0.10 per unit, and the remainder with new convertible debentures with substantially the same terms as the expiring.
Acceleware issued a total of 12,688,589 units. Each unit issued consists of one common share in the capital of the Company and one common share purchase warrant of the Company. Each warrant entitles the holder thereof to acquire one Common Share at $0.20 for a period of two years from the date of issuance of the warrant. In the event that the common shares trade at a closing price at or greater than $0.30 per common share for a period of thirty consecutive trading days, the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given.
Acceleware issued replacement convertible debentures in the principal amount of $1,184,781. Each replacement convertible debenture has a maturity date of April 7, 2030, and a conversion price of $0.15, subject to certain adjustments. Each replacement convertible debenture will be convertible into units consisting of one common share and one-half of one warrant. Each whole warrant will entitle the holder thereof to one common share at an exercise price of $0.30 per common share for a period of two years from the date of issuance, subject to certain adjustments. In addition, Acceleware has the right, at its sole discretion, to require the conversion of the replacement debentures into units if, at any time, the 30-day volume weighted-average trading price of the common shares equals or exceeds $0.195.
QUARTER IN REVIEW
Overall spending in Q1 2026 remained conservative as the Company sourced demonstration sites and financing alternatives for the next phase of the RF XL 2.0 Pilot and began design work on a new Phase 3A 200kg per hour potash fines drying prototype requested by IMII. In Q1 2026, the Company completed a second iron ore feasibility study for BHP.
Revenue of $116 thousand was recorded in the three months ended March 31, 2026, compared to $431 thousand in the three months ended March 31, 2025 ("Q1 2025") and $33 thousand in the previous quarter ended December 31, 2025 ("Q4 2025").
Total comprehensive loss for Q1 2026 was $730 thousand compared to a comprehensive loss of $382 thousand for Q1 2025 and comprehensive loss of $186 thousand for Q4 2025. The increase in comprehensive loss in Q1 2026 compared to Q1 2025 was due to lower revenue despite a reduction in R&D and G&A expenses. Lower comprehensive loss in Q4 2025 was higher due to a gain on assets sold related to the RF XL Pilot.
R&D expenses incurred in Q1 2026 were $341 thousand compared to $421 thousand in Q1 2025 and $465 thousand in Q4 2025. R&D spending in Q1 2026 and Q4 2025 was related to the IMII dryer for potash ore and included lab engineering, designing and testing, data analysis, and partner consultations, and to further engineering on the next iteration of the RF XL 2.0 Pilot.
G&A expenses incurred in Q1 2026 were $249 thousand compared to $253 thousand in Q1 2025 and $312 thousand in Q4 2025. There were lower non-cash payroll related costs incurred in Q1 2026 due to a reduction in rent and other office related costs. The Company continues to prioritize cost control given uncertain economic conditions.
As at March 31, 2026, Acceleware had negative working capital of $6.7 million (December 31, 2025 - negative working capital of $6.0 million) including cash and cash equivalents of $42 thousand (December 31, 2025 - $248 thousand). The increase in negative working capital is attributable to the decrease in cash as well as an increase in convertible debentures, and an increase in deferred management compensation. As noted above, subsequent to March 31, 2026 the company restructured the maturing convertible debentures which results in a $2.4 million improvement in negative working capital to approximately $4.2 million.
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ABOUT ACCELEWARE:
Acceleware is an advanced electromagnetic (EM) heating technology company offering proprietary radio frequency (RF) power-to-heat solutions that increase production, reduce energy consumption and lower operating costs in large-scale industrial heating.
Its core innovation, the Clean Tech Inverter (CTI), is field-proven through an initial commercial-scale pilot of RF XL, Acceleware's thermal enhanced oil recovery technology designed to increase heavy oil production.
Acceleware is leveraging CTI expertise across sectors to increase production and reduce energy consumption. Three mining projects are underway with major operators, while an amine regeneration project is also in progress.
Acceleware is publicly listed on the TSX Venture Exchange under the symbol "AXE".
NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES
This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally means information about an issuer's business, capital, or operations that are prospective in nature, and includes disclosure about the issuer's prospective financial performance or financial position.
The forward-looking information in this press release can be identified by terms such as "believes", "estimates", "plans", "potential", and "will", and includes information about, the expected commercialization of RF XL, the expected cost of the RF XL 2.0 Pilot, the timing of the execution of the RF XL 2.0 Pilot and the redeployment, expected financing required for the RF XL 2.0 Pilot, and the anticipated economic and societal benefits of the RF XL technology. Acceleware assumes that current cost estimates are accurate, current timelines will not be delayed by either internal or external causes, that research and development effort including the commercial-scale test plans will result in commercial-ready products, and that future capital raising efforts will be successful.
Actual results may vary from the forward-looking information in this press release due to certain material risk factors. These risk factors are described in detail in Acceleware's continuous disclosure documents, which are filed on SEDAR+ at www.sedarplus.ca.
Acceleware assumes no obligation to update or revise the forward-looking information in this press release, unless it is required to do so under Canadian securities legislation.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this release in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
DISCLAIMER
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information:
Geoff Clark
Tel: +1 (403) 249-9099
geoff.clark@acceleware.com
Acceleware Ltd.
435 10th Avenue SE
Calgary, AB, T2G 0W3
Canada
Tel: +1 (403) 249-9099
www.acceleware.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299515
Source: Acceleware Ltd.
