Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Hedera (HBAR) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.

No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare Capital Markets Ltd (CCML)’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare Capital Markets Ltd (CCML) has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.

Hedera is a blockchain platform, which is open-source, that has its own cryptocurrency, called HBAR. The Hedera Network can be used to create tokens natively and supports arbitrary Smart Contracts written in Solidity, providing full compatibility with the Ethereum Virtual Machine (EVM) through its integration of the Hyperledger Besu EVM. Hedera leverages the open-source “hashgraph” consensus model, which is designed to allow high throughput and low latency for transactions on the network. In 2025, the core codebase was transitioned to a community-governed project under the Linux Foundation’s Hiero initiative to enhance decentralization and transparency. The network is secured via a proof of stake protocol. HBAR tokens were initially sold via Simple Agreement for Future Tokens (SAFT) open to insiders, advisors, friends and family in December 2017. Another SAFT round took place in Q1 2018. A third SAFT sale occurred in August 2018, and was only open to accredited investors.1 The genesis block of the chain was not produced until September 13th, 2019.

As with all assets, investing in HBAR is not without some general risks. All of the risks of trading and staking crypto that are identified and explained in our Risk Statement apply to HBAR. In addition to the general risks, we outline some risks that are specific to Hedera below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Hedera.

Hedera has a group of 39 large companies and funds which govern the token and network development called the Hedera council. Token holders do not get to vote for governance changes. As of January 2026, 31 of the 39 available council seats are filled by a diverse group of global organizations, including Google, IBM, Boeing, Dell, and Repsol. A complete and current list of council members can be found here: https://hedera.com/council.

In early 2024, a community petition was launched by HBAR holders addressed to the Hedera Governing Council, expressing concerns regarding governance transparency and the market performance of the token at that time. The petition highlighted a perceived disconnect between the network’s institutional backing—which includes entities like Google, IBM, and Boeing—and the token’s value. While the network has since seen renewed institutional interest and technical milestones into 2026, this historical event reflects the potential for friction between the Governing Council and the broader token-holder community. Investors should be aware of this petition when evaluating HBAR.