Mr. Mike Borys reports

AUTOCANADA ANNOUNCES UPSIZE AND PRICING OF ITS PRIVATE OFFERING OF ADDITIONAL SENIOR NOTES DUE 2025 AT A RE-OPENING PRICE OF 106.625%

AutoCanada Inc. has increased and priced its previously announced offering of senior notes. The offering consists of an additional $125-million aggregate principal amount of its existing 8.75-per-cent senior unsecured notes due Feb. 11, 2025, at a price of 106.625 per cent plus accrued interest from and including Feb. 11, 2021, which was increased from the previously announced offering size of $100-million. The notes are being offered and sold to "accredited investors" in certain provinces of Canada on a private placement basis.

Paul Antony, executive chairman of the company, stated: "We are very pleased with the successful outcome of the offering, particularly the pricing at a premium to par, resulting in a yield of 5.595 per cent, which substantially reduces our cost of debt on the incremental notes relative to the initial issuance. We see this pricing improvement as reflecting continued support from all of our investors in response to our strong operating performance, significant available market opportunities and balance sheet strength. We look forward to building on our momentum and growing long-term value for shareholders."

The offering is expected to close on April 22, 2021, subject to the receipt of all necessary approvals and satisfaction of customary closing conditions.

Proceeds of the offering will be used by the company to reduce the outstanding balance under its syndicated credit facility and for general corporate purposes, including acquisitions.

About AutoCanada Inc.

AutoCanada is a leading North American multilocation automobile dealership group currently operating 66 franchised dealerships, comprising 27 brands, in eight provinces in Canada as well as a group in Illinois, United States. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Honda and Porsche branded vehicles. Additionally, the company's Canadian operations segment currently operates one used vehicle dealership supporting the used digital retail division, and two stand-alone collision centres (within the company's group of 17 collision centres). In 2020, AutoCanada's dealerships sold approximately 66,000 vehicles and processed over 756,000 service and collision repair orders in its 1,098 service bays generating revenue in excess of $3-billion.

We seek Safe Harbor.