LiqTech International, Inc. entered into a Debt Cancellation and Exchange Agreement on May 26, 2026. The company will cancel $3 million of its $6 million outstanding senior promissory notes in exchange for common stock. The issuance price per share for the debt-for-equity swap will match the public offering price of the company's concurrent S-1 offering. The remaining $3 million of principal, plus all accrued interest on the total $6 million debt, will be paid in cash to the note holders upon closing. Upon completion of these transactions, the senior promissory notes will be fully extinguished.