HSTA · Hestia Insight Inc.

Hestia Insight Inc. entered into a Strategic Divestiture & Settlement Agreement with its Chairman and President, Edward Lee, to settle a $500,000 compensation liability arising from six years of unpaid service. The company transferred 100% ownership of its wholly owned subsidiary, Hestia Investments Inc., to Mr. Lee in full satisfaction of the debt. The subsidiary was valued at approximately $500,000 using a cost-to-create and asset-based approach, and the transaction relieves Hestia Insight of approximately $10,000 per month in operational funding requirements. As additional consideration for shareholders, the subsidiary will pay 20% of its annual net earnings to Hestia Insight for two years, which will be distributed pro-rata to stockholders of record as of April 30, 2026. The agreement was ratified by holders of 67% of voting power and includes a conflict waiver due to Mr. Lee's status as an interested director. The transfer will become effective 20 calendar days after the mailing of a definitive information statement to stockholders. This divestiture streamlines the company's balance sheet and reduces operational burn in preparation for upcoming merger activities.