SPARC AI Announces Amended Private Placement

(TheNewswire)

Vancouver, Canada – TheNewswire - March 13, 2026 — SPARC AIInc. (the “Company”) (CSE: SPAI) (OTCQB:SPAIF) (Frankfurt: 5OV0), is pleased to announcethat, further to its previously announced non-brokered privateplacement (the “Offering”), it has increased the size of theOffering from gross proceeds of up to $2,200,000 to gross proceeds ofup to $2,400,000.

The Offering will now consist of up to 1,714,286 Units(each, a “Unit”) at a price of $1.40 per Unit. Each Unit willconsist of one common share of the Company and one common sharepurchase warrant (each, a “Warrant”). Each Warrant will entitlethe holder to purchase one common share of the Company at a price of$1.80 at any time on or before the date that is twenty-four months after the closing date of the Offering.

If the closing price of the common shares of theCompany on the Canadian Securities Exchange exceeds $3.00 for aperiod of ten consecutive trading days, the Company may elect toaccelerate the expiry date of the Warrants.

Anoosh Manzoori, CEO & Director,Matt McCrann, U.S CEO, and Greg Daly, wholeads the Company’s Australian business development efforts, willparticipate in the Offering. The net proceeds raised from the Offeringwill be used to advance development of the Company’s Overwatchplatform, commercialization activities, and for working capital andgeneral corporate purposes.

The Units to be issued under the Offering will beoffered for sale pursuant to the listed issuer financing exemptionunder Part 5A of National Instrument 45-106 – Prospectus Exemptions,as amended by CSA Coordinated Blanket Order 45-935 – Exemptions fromCertain Conditions of the Listed Issuer Financing Exemption(collectively, the “Listed Issuer Financing Exemption”), in allprovinces of Canada, except Quebec, and other qualifyingjurisdictions, including the United States. The Units offered underthe Listed Issuer Financing Exemption will be immediately“free-trading” under applicable Canadian securities laws.

The Company will file an offering document related tothe Offering (the “Offering Document”) that will be accessibleunder the Company’s profile at www.sedarplus.ca and on theCompany’s website at: www.sparcai.co. Prospective investorsshould read the Offering Document before making an investmentdecision. In connection with closing of the Offering, the Company maypay finders’ fees to eligible third-parties who have assisted withintroducing subscribers to the Offering. Closing of the Offeringremains subject to applicable regulatory approvals.

This press release is not an offer to sell or thesolicitation of an offer to buy the securities in the United States orin any jurisdiction in which such offer, solicitation or sale would beunlawful prior to qualification or registration under the securitieslaws of such jurisdiction. The securities being offered have not been,nor will they be, registered under the United States Securities Act of1933, as amended, and such securities may not be offered or soldwithin the United States or to, or for the account or benefit of, U.S.persons absent registration or an applicable exemption from U.S.registration requirements and applicable U.S. state securitieslaws.

About SPARC AI Inc.

SPARC AI is a defence technology company solving one of the mostcritical challenges in modern autonomous systems: accurate navigationand targeting when GPS is unavailable. The company's AI-poweredplatform transforms the low-cost inertial sensors already insidecommercial drones into precision instruments without additionalhardware, external signals, or complex integration. SPARC AI'ssoftware-only approach makes GPS-denied capability for targetacquisition and navigation accessible at the price point and scalethat modern drone operations demand, from single platforms to fleetsof thousands.

For further informationcontact:

Anoosh Manzoori, Chief Executive Officer

SPARC AI Inc.

E-mail: anoosh@sparcai.net
Web : http://www.sparcai.co

Tel: (213) 459-3994

Cautionary StatementRegarding Forward-Looking Statements

This news release contains “forward-lookingstatements” or “forward-looking information” (collectively,“forward-looking statements”) within the meaning of applicablesecurities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based onexpectations, estimates and projections as of the date of this newsrelease. Forward-looking statements include, but are not limited to,statements regarding: the filing of the OfferingDocument, the anticipated participation of management in the Offering, the intended use of proceeds from theOffering, the expected timing for completion ofthe Offering and other factors or information.

Forward-looking statements are subject to a variety ofknown and unknown risks, uncertainties and other factors that couldcause actual events or results to differ from those expressed orimplied by forward-looking statements contained herein. There can beno assurance that such statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Certain important factors that couldcause actual results, performance or achievements to differ materiallyfrom those in the forward-looking statements are highlighted in the“Risks and Uncertainties” in the Company’s management discussionand analysis.

Forward-looking statements are based upon a number ofestimates and assumptions that, while considered reasonable by theCompany at this time, are inherently subject to significant business,economic and competitive uncertainties and contingencies that maycause the Company’s actual financial results, performance, orachievements to be materially different from those expressed orimplied herein. Some of the material factors or assumptions used todevelop forward-looking statements include, without limitation:the failure to complete the Offering; relianceon key management and other personnel; potential downturns in economicconditions; competition from others; market factors, including futuredemand products developed by the Company; the policies and actions offoreign governments, which could impact the ability of the Company tosuccessfully market its products; the Company’s expectations inconnection with the development of the Target Acquisition System; theeffectiveness of the Target Acquisition System; changes in nationaland local government legislation, taxation, controls or regulationsand/or changes in the administration or laws, policies and practices;the impact of general business and economic conditions; currency exchangerates; and the impact of inflation.

The forward-looking statements contained in this newsrelease are expressly qualified by this cautionary statement. Anyforward-looking statements and the assumptions made with respectthereto are made as of the date of this news release and, accordingly,are subject to change after such date. The Company disclaims anyobligation to update any forward-looking statements, whether as aresult of new information, future events or otherwise, except as maybe required by applicable securities laws. There can be no assurancethat forward-looking statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements.

Neither the Canadian SecuritiesExchange nor its Regulation Services Provider (as that term is definedin the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO U.S.NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Copyright (c) 2026 TheNewswire - All rights reserved.