Universal Digital Inc. Files Preliminary Prospectus for Additional Leveraged Crypto Equity ETFs

Universal Digital and LongPoint Seek to List Inverse Leveraged Single-Stock ETFs on Coinbase and MicroStrategy

Vancouver, British Columbia–(Newsfile Corp. – August 12, 2025) – Universal Digital Inc. (CSE: LFG) (OTCQB: LFGMF) (FSE: 8R20) (the “Company” or “Universal Digital”) is pleased to announce that, in partnership with LongPoint Asset Management Inc. (“LongPoint”), it has filed a preliminary prospectus for the proposed launch of two new inverse leveraged exchange-traded funds (“ETFs”).

The proposed LFG Daily (-2X) COIN Short ETF (“COID ETF”) will seek to deliver two times the inverse (-2x) of the daily performance of Coinbase Global Inc. (Nasdaq: COIN), while the proposed LFG Daily (-2X) MSTR Short ETF (“MSTZ ETF”) will seek to deliver two times the inverse (-2x) of the daily performance of MicroStrategy Inc. (Nasdaq: MSTR).

The proposed ETFs are structured as alternative mutual funds and LongPoint will apply for the conditional listing approval of the ETFs on the Toronto Stock Exchange (the “TSX”). The Company expects the COID ETF to be listed under the ticker symbol “COID” and the MSTZ ETF to be listed under the ticker symbol “MSTZ”. Both ETFs are expected to be listed and traded in Canadian dollars, subject to regulatory and TSX approval.

Universal Digital and LongPoint entered into a partnership agreement on May 21, 2025, to establish, operate, and market Universal Digital-branded ETF products in Canada. The partnership currently has co-launched two TSX-listed ETFs, COIU and MSTU. The Company has co-developed the newly proposed ETFs with LongPoint and will act as a promoter and brand partner for the ETFs. LongPoint will serve as the investment fund manager and portfolio manager for the ETFs, leveraging its experience in ETF structuring, compliance, and operations.

“Since launching our first ETFs with LongPoint earlier this year, we’ve been focused on expanding the product lineup to give investors more ways to access and manage exposure to the digital asset sector,” said Chris Yeung, Chief Executive Officer of Universal Digital. “Filing for these inverse leveraged ETFs marks another step forward in building a comprehensive suite of products that meet a broad range of trading and hedging objectives.”

“LongPoint is thrilled to continue its partnership with Universal Digital to expand the LFG ETF line-up and bring these first-of-their-kind products to the Canadian market. We’ve seen strong demand from Canadians actively trading similar U.S.-listed ETFs, and once listed, these ETFs will offer a homegrown alternative tailored to active Canadian investors,” said Steve Hawkins, CEO of LongPoint.”

The preliminary prospectus dated August 12, 2025, containing important information relating to the ETFs, has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. A copy of the preliminary prospectus is available on www.sedarplus.ca. Prospective investors cannot buy shares of the ETFs until the relevant securities commissions or similar authorities issue receipts for the final prospectus of the ETFs and the ETFs begin trading on the TSX.

About Universal Digital Inc.

Universal Digital Inc. is a Canadian investment company focused on digital assets, businesses and private and publicly listed entities that are involved in high-growth industries, with a particular focus on blockchain, cryptocurrencies and cryptocurrency technologies. The Company aims to provide shareholders with long-term capital growth through a diversified investment approach, and to participate in the transformation of global finance through the integration of digital asset strategies.

About LongPoint Asset Management Inc.

LongPoint delivers innovative ETF solutions designed to enhance the Canadian investing journey. With over 70 years of combined expertise in the ETF market, its dedicated team leverages deep industry connections and local insights to design, build and launch exceptional ETFs tailored for Canadian investors. LongPoint has 26 Canadian ETF listings with assets under management of close to $200 million.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement regarding Forward Looking Information

This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-Looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements, referred to herein as “forward-looking statements”, are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management’s expectations and intentions with respect to, among other things: the launch of the ETFs; the structure and intended performance of the ETFs; the formation of the ETFs, including the designated names and ticker symbols of the ETFs; the listing of the ETFs on the TSX; the Company’s role in respect of the ETFs; the benefit of LongPoint and the Company’s involvement in the ETFs; and regulatory approvals of the ETFs.

These forward-looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things: the Company and LongPoint may be unable to successfully launch the ETFs; the structure, formation and intended performance of the ETFs may differ from current expectations; the ETFs may not receive approval for listing on the TSX or other regulatory approvals; and the involvement of LongPoint and the Company in the ETFs may not provide the anticipated benefits.

In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that the Company and LongPoint will proceed with the launch of the ETFs; the ETFs will be structured and formed as currently expected; the ETFs will operate under the anticipated names and ticker symbols of the ETFs; the ETFs will receive approval for listing on the TSX and other regulatory approvals; LongPoint and the Company’s knowledge and experience will add value to the formation and management of the ETFs.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

The ETFs are alternative mutual funds, and as such, the ETFs are permitted to invest in asset classes or use investment strategies that are not permitted for other types of mutual funds. The ETFs are highly speculative. The ETFs use a significant amount of leverage which magnifies gains and losses. They are intended for use in daily or short-term trading strategies by very knowledgeable, sophisticated investors. If you hold such an ETF for more than one day, your return could vary considerably from the ETF’s daily target return. The negative effect of compounding on returns is more pronounced when combined with leverage and daily rebalancing in volatile markets. The ETFs are not suitable for investors who do not intend to actively monitor and manage their investments.

The ETFs employ significant leverage, may experience amplified losses and should not be expected to return -200 of their daily target over any period of time other than daily. An investor in an LFG ETF could lose their entire investment within a single day if the market value of the respective common stock increases by 50% or more that day. The returns of the ETFs over periods longer than one day will likely differ in amount and possibly direction from their daily target for the same period. This effect is more pronounced for the ETFs as the volatility of the daily target and/or the period of time increases.

This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial and/or tax advisor for financial and/or tax information applicable to their specific situation.

Commissions, management fees, performance fees and operating expenses may all be associated with an investment in the ETFs. The ETF are not guaranteed, their values change frequently, and past performance may not be repeated. The ETF Facts and prospectus contain important detailed information about the ETFs. Please read the relevant documents before investing.

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