Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Pudgy Penguin Token (PENGU) 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’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.

PENGU is a token issued on the Solana blockchain using the standard SPL contract. PENGU serves as the official governance and utility token for the Pudgy Penguins ecosystem and is the native currency for the Abstract Chain. It grants holders access to exclusive experiences, voting rights on key project decisions, and utility within the broader Pudgy World ecosystem. The PENGU token was created by the same organization that created the Pudgy Penguins NFT collection and was originally airdropped to NFT holders.

As with all assets, investing in PENGU is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to PENGU 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 PENGU.

Large allocations of the total PENGU supply have been allocated to various groups: 17.8% to the team, 11.5% to the company which issued it, 24.1% to “other communities”. Some of these grants have already vested, while others reached their vesting cliff in December 2025 and are now vesting linearly. As of February 2026, approximately 72% of the total supply of tokens has been unlocked.

As PENGU is an SPL token on the Solana network, it is highly dependent on the continued stability of that network. Any fundamental issues in the Solana network may impact PENGU's smart contract or token value. Investors should consider this dependency, and the Solana network’s history with respect to stability, when evaluating PENGU.

PENGU does not explicitly derive any value from the associated NFT collection, but there is a possibility that any event or market change that causes a loss in value for the NFT collection may impact the value of PENGU token.