Ms. Sage Berryman reports

ALUULA ANNOUNCES STRATEGIC COLLABORATION ON ADVANCED MATERIALS INNOVATION IN CANADA

Aluula Composites Inc. has signed an agreement with Export Development Canada (EDC) to retain critical advanced materials manufacturing capability in Canada to help strengthen domestic supply chains and sovereign capacity.

Critical capability stays in Canada

As part of this agreement, Aluula is rehoming select advanced manufacturing equipment following the recent sale of Sheertex's assets. The equipment supports research and development related to the production of ultrahigh-molecular-weight polyethylene (UHMWPE) fibre, an exceptionally strong and lightweight material used in a range of industrial applications, including defence systems, ballistic protection, helmets, armour systems and advanced composite structures for military platforms. Aluula's intellectual property and the associated advances in manufacturing have also enabled the use of UHMWPE in applications requiring lightweight strength in extreme environments, such as soldier systems, operational clothing, packs and shelters.

While UHMWPE fibre production, which occurs early in the supply chain, is not currently part of Aluula's business plan, this agreement helps preserve critical sovereign capability across the defence, aerospace and advanced manufacturing sectors. EDC supported the retention of this equipment in Canada to preserve essential skills, technical expertise and domestic resilience for dual-use products, strengthening sovereign supply chains and enabling future innovation.

Under the terms of the agreement, Canada has reserved, for a period of three years, the right to access the specific equipment related to the production of UHMWPE fibres, now owned by Aluula, if it is required for national security or defence.

Closing the innovation-to-production gap

"Canada has world-class research institutions and innovative companies but translating that strength into products built and used in Canada can be challenging," said Sage Berryman, chief executive officer and president of Aluula. "It requires addressing our innovation challenges with both global thinking and local, opportunistic collaboration, and our joint initiative with EDC is a great example. Ensuring that key capabilities remain here allows industry, researchers and end users to continue collaborating to move advanced materials from concept to real-world applications."

Several innovative Canadian companies that are beginning to explore UHMWPE-enabled products for global defence applications welcome initiatives like this.

"In the shelter industry, material performance directly impacts durability, mobility and protection in some of the world's most challenging environments," said Ray Castelli, chief executive officer of Weatherhaven. "Having direct access to advanced materials capability in Canada helps us meet the evolving needs of defence and humanitarian operations."

"For modern uniform and technical apparel systems, advanced materials are becoming a critical differentiator in performance, durability and protection. As a supplier across defence, government and aviation programs, ensuring these capabilities remain in Canada strengthens our ability to deliver reliable, high performance solutions at scale," said Michael Smith, president at Unisync.

Strengthening sovereign supply chains

"Canada is at a nation-building moment, and defence and advanced manufacturing capabilities are central to it. Keeping advanced materials innovation in Canada reinforces our country's sovereignty and long-term competitiveness and resilience," says Guillermo Freire, senior vice-president, mid-market group, at EDC. "We're pleased that Aluula is providing a new home for this important manufacturing technology, helping ensure critical capabilities remain in Canada."

About Aluula Composites Inc.

Aluula is an ultralight, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear as well as commercial and industrial equipment. Proudly owned and manufactured on the Canadian west coast, Aluula's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. Aluula's materials are known for their unique construction capabilities and their ability to make products lighter, stronger and more sustainable.

We seek Safe Harbor.