Universal Digital terminates cooperation with Longpoint ETF... Fees are discontinued, cash collection remains unchanged

Global Digital Company (CSE:LFG, OTCQB:LFGMF) terminated its ETF project in cooperation with Long Point Asset Management on May 15. The company will no longer serve as the “sponsor” or brand sponsor of the ETF, and its revenue-sharing agreement ended entirely on May 1.

According to the termination agreement, Global Digital Company will receive CAD 260k from Long Point before March 31, 2028, approximately 389.48 million Korean won. The company stated that this contract termination does not involve new securities issuance, nor does it involve paying referral fees or commissions.

Although exiting the ETF business, it is difficult to see this as a simple withdrawal. Because while clearing its original role, the company gained cash collection rights, which to some extent eased financial burdens. From recent announcements, Global Digital Company seems to focus more on capital structure adjustments and selective partnerships rather than business expansion.

Debt clearance in succession… Repaying debt through stock issuance

Global Digital Company announced two debt clearance plans this year. According to the March 25 agreement, the company decided to repay CAD 29,933.75 by issuing 332.6k common shares, with an implied issuance price of CAD 0.09 per share.

Previously, on February 12, through an agreement with North Bay Capital Partners, the company decided to clear CAD 69,146.50 of debt by issuing 987.81k common shares, priced at CAD 0.07 per share. Both transactions required approval from the Toronto Stock Exchange, and the issued shares are subject to a four-month plus one-day statutory lock-up period. The creditors are all non-affiliated independent parties, with no additional referral fees involved.

This approach reduces cash outflows but also increases the potential dilution of existing shareholders’ equity. However, it is interpreted as an effort to quickly clear small debts to reduce liquidity pressure.

Termination of convertible bonds into short-term loans… Simplifying complex rights structures

On January 27, Global Digital Company announced the termination of the senior secured convertible bond agreement and issued short-term promissory notes. The principal of the canceled convertible bonds was USD 3.336364 million, and during the cleanup process, the company also canceled conversion rights, new share subscription rights, and additional financing obligations.

As an alternative, the company issued a secured non-convertible promissory note of USD 300k (about 449.4 million KRW) with an annual interest rate of 6% and a three-month term. Regarding the original collateral, Helena Global Investment Opportunities 1 will continue to hold the trust assets that secured the convertible bonds.

Subsequently, on January 28, the company corrected the currency units in the relevant announcement, stating that the principal of the canceled convertible bonds was CAD 3.34M, and the principal of the replacement promissory note was USD 300k. The company added that aside from the currency notation, the actual terms or business content remained unchanged.

This is seen as an effort to remove complex financial structures with conversion potential and adopt short-term simple debt to reduce uncertainty.

Dogecoin ecosystem and Japan market strategy… Simultaneous investment in ReYU Japan

On January 8, Global Digital Company signed a strategic cooperation and profit-sharing agreement with the Dogecoin (DOGE) Foundation’s corporate division, House of Doge. The agreement provides a framework for cooperation in the exercise and monetization of new share subscription rights related to ReYU Japan that the company holds or will acquire in the future.

The company stated that this move explores opportunities within Japan’s Dogecoin (DOGE) ecosystem. However, it also clarified that the agreement does not constitute a partnership, joint venture, or agency relationship, and all parties will maintain independent decision-making. Additionally, House of Doge, ReYU Japan, and abc signed a non-binding strategic alliance to jointly explore potential DOGE-related business opportunities in Japan.

Last October 29, Global Digital Company completed a strategic equity and warrant investment in ReYU Japan (TSE: 9425) through its Singapore entity Sea Castle Singapore. The company purchased 200k common shares for about USD 1.03 million, representing approximately 3.48% of total equity, and also bought 8,000 warrants for USD 45,434. Each warrant grants the right to purchase 100 shares, for a maximum of 800k shares. The exercise price is 579 yen, with maturity on July 23, 2028.

The agreement also includes an option to buy an additional 10,000 warrants. Moreover, ReYU Japan has obtained a non-binding right to request up to USD 100 million in funding support for digital asset purchases, though actual execution depends entirely on Global Digital Company’s decision.

Crypto.com custody agreement and European marketing… Maintaining digital asset strategy

On September 25 of last year, Global Digital Company established a strategic alliance with Crypto.com, introducing institutional-grade custody and OTC trading services for its digital asset portfolio. Crypto.com provides custody, trade execution, liquidity provision, block trading support, and account-level compliance support.

On October 29, the company also signed a memorandum of understanding with ReYU Japan on digital asset financial strategy cooperation. The MOU includes the potential for Global Digital Company to lead and coordinate loan arrangements up to USD 100 million. However, this remains a non-binding agreement, with no obligation to provide actual funding before formal contracts are signed.

During the same period, the company also engaged in a three-month investor awareness campaign with Plutus Invest & Consulting from November 1, 2025, to January 31, 2026. The maximum budget was EUR 250k, with an initial prepayment of EUR 125k. The company did not offer securities or equity compensation, and the firm did not undertake market-making or trading services.

Overall, while terminating its ETF partnership, Global Digital Company is moving toward retaining its core digital asset strategy while streamlining its financial structure. Particularly, DOGE, the Japanese market, institutional custody infrastructure, and selective capital allocation have become its main business focuses. Analysts believe the current stage of the company is more aligned with “cleanup and focus” rather than aggressive expansion.

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