SCHEDULE: Star Financial Boosts ZenaTech Stake to 7.1%

Star Financial Corp has increased its beneficial ownership in ZenaTech, Inc. to 7.1% through the conversion of convertible debt.

Summary

• Star Financial Corp (the "Reporting Person") has filed a Schedule 13D, reporting an increase in its beneficial ownership of ZenaTech, Inc. (the "Issuer") common stock.
• The Reporting Person now holds an aggregate of 1,995,000 common shares of ZenaTech, Inc., representing approximately 7.1% of the Issuer's outstanding common shares.
• This acquisition resulted from the partial conversion of amounts outstanding under two convertible lines of credit previously provided by Star Financial Corp to ZenaTech, Inc.
• On April 13, 2025, Star Financial Corp acquired 645,000 common shares by converting $1,130,040 outstanding from an August 2019 line of credit, at a price of $1.752 per share.
• On November 5, 2025, Star Financial Corp acquired an additional 750,000 common shares by converting $2,514,000 outstanding from an October 5, 2024 line of credit, at a price of $3.35 per share.
• The purpose of these transactions is for investment, and the Reporting Person currently has no plans or proposals to effect any major changes to the Issuer's business or corporate structure.

Sentiment

Score: 5

Explanation: The filing is a factual report of a change in beneficial ownership due to debt conversion, presenting a neutral sentiment. While debt reduction is positive for the issuer, equity dilution is a consideration for existing shareholders.

Positives

• The conversion of convertible debt into equity reduces ZenaTech, Inc.'s outstanding liabilities, potentially improving its balance sheet.
• Increased beneficial ownership by Star Financial Corp, a financial entity, could signal confidence in ZenaTech, Inc.'s future prospects.

Negatives

• The issuance of new common shares through debt conversion results in dilution for existing ZenaTech, Inc. shareholders.

Future Outlook

Star Financial Corp acquired ZenaTech, Inc. common stock for investment purposes and currently has no plans or proposals that would result in significant changes to the Issuer's business, corporate structure, or management.

Industry Context

This filing reflects a specific investment action by a financial corporation in a publicly traded company. Without further context on ZenaTech, Inc.'s industry or Star Financial Corp's typical investment strategy, broader industry trends or competitive analysis cannot be provided from this filing alone.

Related Party Transactions

• Star Financial Corp provided convertible lines of credit to ZenaTech, Inc. in August 2019 and October 5, 2024. Given Star Financial Corp's current 7.1% beneficial ownership, these transactions represent dealings between significantly related parties.

Stakeholder Impact

• Shareholders: Experience dilution due to the issuance of new common shares.
• Creditors: The conversion of debt to equity reduces ZenaTech, Inc.'s outstanding liabilities, potentially improving its credit profile.

Key Dates

Keywords

ZenaTech Inc, Star Financial Corp, Schedule 13D, beneficial ownership, common stock, convertible debt, equity conversion, investment