Mr. Louis Dron reports

REDWOOD AI COMPLETES ACQUISITION OF QUANTUM.IQ TO EXPAND INTO QUANTUM-RESISTANT CYBERSECURITY

Redwood AI Corp., further to its news releases dated May 28, 2026, June 26, 2026, and July 6, 2026, has completed the acquisition of all of the issued and outstanding shares of Quantum.IQ Technologies Inc. Quantum.IQ is a Vancouver-based quantum cybersecurity company developing software designed to help organizations assess and prepare their encryption systems for future quantum-enabled cyber threats. As a result of the acquisition, Quantum.IQ is now a wholly owned subsidiary of Redwood.

By integrating Quantum.IQ's cybersecurity platform, Redwood intends to broaden its technology base beyond its existing artificial intelligence and advanced computational capabilities. The acquisition adds software capabilities focused on cryptographic visibility, quantum-readiness assessment and security infrastructure planning, which Redwood believes may strengthen its ability to develop technology for regulated, data-intensive and security-sensitive environments.

Quantum.IQ's postquantum cryptography (PQC) platform is designed to help high-security organizations, including those operating in government, defence, financial services and critical infrastructure, identify and assess the encryption systems used across their digital environments, and plan upgrades toward quantum-resistant security infrastructure. The platform supports cryptographic asset discovery, cryptographic bill of materials creation, standards alignment, vulnerability management, migration planning, continuous monitoring and executive-level reporting.

The platform is also designed to identify potential exposure across certificates, transport layer security configurations, application programming interfaces, source code and related digital infrastructure. These capabilities can provide organizations with a clearer understanding of where cryptography is being used and help technical and executive teams prioritize future security upgrades across complex operating environments.

"The completion of this acquisition adds a specialized cybersecurity platform to Redwood at a time when governments and enterprises are beginning to consider how quantum computing may affect long-term data protection. Quantum.IQ brings technology focused on helping organizations understand their existing cryptographic infrastructure and prepare for future security requirements. We look forward to supporting the continued development of the platform and advancing its commercialization as part of Redwood," stated Louis Dron, chief executive officer of Redwood AI.

In consideration for the acquisition, Redwood issued to the former shareholders of Quantum.IQ an aggregate of up to 14,033,558 common shares of the company at a deemed price of $2.98 per consideration share. The consideration shares consist of 7,033,558 common shares of the company subject to a staged escrow release schedule over 24 months and up to seven million additional common shares of the company held in milestone escrow that will become eligible for release upon the achievement of specified customer and revenue criteria, and will thereafter be subject to a secondary escrow release schedule. For additional information regarding the terms of the acquisition, see the company's news release dated June 26, 2026. In addition to the foregoing escrow conditions, the consideration shares will be subject to a four-month hold period pursuant to the policies of the Canadian Securities Exchange.

The company further issued 50,000 common shares of the company to an arm's-length third party as an administrative fee for its assistance with the acquisition and a finder's fee of 100,000 common shares of the company to an independent third party finder. Each of the admin shares and finder's shares will be subject to a four-month-and-one-day hold period in accordance with applicable securities laws.

About Redwood AI Corp.

Redwood uses advanced artificial intelligence to accelerate chemistry R&D (research and development), with the aim of assisting in drug discovery and development, and furthering defence and safety solutions. The company combines expertise in chemistry, AI (artificial intelligence) and manufacturing to streamline drug synthesis and scale-up. Redwood's platform is designed to enable faster, more efficient development of new therapies and chemistry-driven applications.

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