Mr. Simon Hitzig reports

ACCORD ANNOUNCES BANKING FACILITY UPDATE AND PROPOSED DEBENTURE AMENDMENTS

Accord Financial Corp. has reached an agreement with its lending syndicate on a short-term extension of its main credit facility from Dec. 15, 2025, to Dec. 23, 2025. This extension will allow the company more time to finalize discussions relating to an amendment to the bank facility, which would further extend the maturity date to February, 2026.

Refinancing plan

As part of a comprehensive refinancing plan, the company also announced that it will seek the approval of the holders of its 10 per cent unsecured subordinated debentures due Jan. 31, 2026, to amend certain terms of such debentures at a special meeting of the debentureholders to be held on Jan. 27, 2026. The amendments include increasing the interest rate to 12 per cent commencing Jan. 31, 2026, and extending maturity to July 31, 2026 (details below). Due to restrictions under the bank facility, the company will defer payment of interest due on the debentures on the coming Dec. 31, 2025, interest payment date. The deferred interest will be paid on the new July 31, 2026, maturity date, if the debenture amendments are approved. The bank facility amendment and the proposed debenture amendments, if approved, will provide Accord with time to complete certain strategic initiatives intended to pave the way to refinance the bank facility and repay the debentures.

As previously disclosed in the company's public filings, Accord has been working with financial advisers to pursue a broad range of strategic initiatives to streamline the business and strengthen the balance sheet, through sales of non-core business units and portfolio assets. On Dec. 11, 2025, the company entered into a non-binding letter of intent for the sale of a majority of the loans of Accord Financial Inc., which, if completed, will refocus Accord's business on the Canadian market and reduce outstanding debt by approximately $45-million. Discussions are also continuing with a number of potential lenders to refinance the bank facility on the basis that the AFIU transaction will be completed. Following completion of the above transactions, Accord's board of directors believes the company will have a capital structure better positioned to support a refinancing of the debentures on or before July 31, 2026.

Securing approval of the debenture amendments is a critical part of the refinancing plan and the most practical path to repayment. The company does not expect to be in a position to repay the debentures on the scheduled Jan. 31, 2026, maturity date. By approving the debenture amendments, debentureholders would avoid a default scenario and provide the company with the time required to implement its refinancing plan and pursue repayment of the debentures.

The company's president and chief executive officer Simon Hitzig commented: "Accord's refinancing plan is advancing, supported by constructive discussions with the lenders and the recently signed letter of intent in respect of the AFIU transaction. While there is no assurance that the strategic initiatives will yield a successful result, approval of the proposed debenture amendments is essential to completing the refinancing plan and repaying the debentures. In addition, the interest rate increase to 12 per cent per annum commencing Jan. 31, 2026, through July 31, 2026, compensates debentureholders for the additional time to maturity and the deferral of the Dec. 31 interest payment. We sincerely appreciate debentureholders' support through this critical period," added Mr. Hitzig.

Proposed debenture amendments

The proposed debenture amendments comprise the following:

1. Extending the maturity date of the debentures from Jan. 31, 2026, to July 31, 2026;
2. Increasing the interest rate on the debentures from 10 per cent to 12 per cent, which increase would be effective as of Jan. 31, 2026, such that, on the July 31, 2026, maturity date, debentureholders will receive 12 months worth of accrued interest calculated at a rate of 10 per cent for the period from July 1, 2025, to and including Jan. 30, 2026, and a rate of 12 per cent for the period from Jan. 31, 2026, to and excluding July 31, 2026; and
3. Waiving the breach of the indenture caused by the corporation's failure to pay interest on the debentures on the Dec. 31, 2025, interest payment date.

Accord's board of directors unanimously recommends that debentureholders vote in favour of the debenture amendments.

The debenture amendments will only be effective if passed by an extraordinary resolution of the holders of at least 66-2/3rds per cent of the principal amount of the debentures present in person or by proxy at the meeting and entitled to vote in respect of the debenture amendments. If approved, the debenture amendments will be reflected in a supplemental trust indenture between the company and the debenture trustee with the expected effective date of Jan. 27, 2026.

The debentures trade on the Toronto Stock Exchange under the symbol ACD.DB and, following today's announcement, are expected to trade on an interest flat basis. The corporation has applied to the TSX for approval of the debenture amendments, and the debenture amendments remain subject to the approval of the TSX.

Further particulars relating to the debenture amendments will be described in the management information circular relating to the meeting, which will be available under the company's profile on SEDAR+ and which will be mailed to all debentureholders.

About Accord Financial Corp.

Accord Financial is one of North America's most dynamic commercial finance companies, providing fast, versatile financing solutions for including asset-based lending, factoring, inventory finance, equipment finance (Canada), trade finance and film/media finance. By leveraging its unique combination of deep experience and independent thinking, it crafts winning financial solutions for small- and medium-sized businesses, simply delivered, so its clients can thrive.

We seek Safe Harbor.