Mr. Sunny Trinh reports

DEVVSTREAM ANNOUNCES AMENDMENTS TO BUSINESS COMBINATION AGREEMENT WITH FOCUS IMPACT ACQUISITION CORP.

Devvstream Holdings Inc., further to its news release of Sept. 13, 2023, has amended certain terms of that certain business combination agreement, amongst the company, Focus Impact Acquisition Corp. and Focus Impact Amalco Sub Ltd. (Amalco Sub). The primary purpose of the amendment is to provide for a reverse split of (i) the Class A common stock of Focus Impact and (ii) the share consideration payable to the company's shareholders at the closing of the business combination (as defined below), in each case, to be completed prior to closing of the business combination.

On May 1, 2024, the company, Focus Impact and Amalco Sub entered into amendment No. 1 to the business combination agreement, which amends the business combination agreement. The transactions contemplated by the business combination agreement are referred to as the business combination. The first amendment provides, among other things, that:

1. Pursuant to the SPAC continuance: (a) each issued and outstanding unit of Focus Impact, consisting of (I) one share of Focus Impact's Class A common stock, par value 0.01 cent per share, and (II) one-half of one redeemable warrant exercisable for one share of Class A common stock at an exercise price of $11.50, that has not been previously separated into its component securities prior to the SPAC continuance shall automatically convert into securities of New PubCo identical to (i) a number of New Pubco common shares equal to the reverse split factor (as defined below) and (ii) a number of warrants to purchase one New PubCo common share equal to one-half of the reverse split factor at an exercise price equal to the adjusted exercise price (as defined below); (b) each issued and outstanding share of Class A common stock that has not been redeemed shall remain outstanding and automatically convert into a number of New PubCo common shares equal to the reverse split factor; (c) each issued and outstanding share of Class B common stock of Focus Impact, par value 0.01 cent per share, shall automatically convert into a number of New PubCo common shares equal to the reverse split factor or be forfeited in accordance with the sponsor side letter (as defined below); and (d) each Focus Impact warrant and the warrants issued to Focus Impact Sponsor LLC, a Delaware limited liability company and Devvstream's sponsor, in the private placement consummated simultaneously with Focus Impact's initial public offering, which entitles the holder thereof to purchase one whole share of Class A common stock at $11.50 per share (together with the FIAC warrants, the warrants), will be assumed by New PubCo and automatically converted into the right to exercise such warrant for a number of New PubCo common shares equal to the reverse split factor at an exercise price equal to the adjusted exercise price. Any fractional shares or warrants to be issued pursuant to the SPAC continuance will be rounded down to the nearest whole share or warrant;
2. Pursuant to the amalgamation, New PubCo shall issue, and the holders of company shares (as defined below) collectively shall be entitled to receive a number of New PubCo common shares equal to (a) the common amalgamation consideration (as defined below), plus (b) solely to the extent any multiple voting company shares and subordinate voting company shares are required to be issued to approved financing sources (as defined below) pursuant to approved financings (as defined below) in connection with the closing, a number of New PubCo common shares equal to (i) each such company share multiplied by (ii) the per common share amalgamation consideration (as defined below) in respect of such company share.

The per common share amalgamation consideration means (i) with respect to each multiple voting company share, an amount of New PubCo common shares equal to (a) 10, multiplied by (b) the common conversion ratio (as defined below), and (ii) with respect to each subordinated voting company share, an amount of New PubCo common shares equal to the common conversion ratio. The common conversion ratio means, in respect of a company share, the number equal to the common amalgamation consideration divided by the fully diluted common shares outstanding (as defined below). The common amalgamation consideration means, with respect to the company securities, a number of New PubCo common shares equal to the product of (a) the reverse split factor, multiplied by (b) the quotient of (i) the amalgamation consideration value (as defined in the business combination agreement), divided by (ii) $10.20. The fully diluted common shares outstanding means, without duplication, at any measurement time (a)(i) 10, multiplied by (ii) the aggregate number of multiple voting company shares that are issued and outstanding, plus (b) the aggregate number of subordinated voting company shares that are issued and outstanding, plus (c) the aggregate number of subordinated voting company shares to be issued pursuant to the exercise and conversion of the company options in accordance therewith, plus (d) the aggregate number of subordinated voting company shares to be issued pursuant to the exercise and conversion of the company warrants in accordance therewith, plus (e) the aggregate number of subordinated voting company shares to be issued pursuant to the vesting of the restricted stock units of the company in accordance therewith. For the avoidance of doubt, fully diluted common shares outstanding shall not include any subordinated voting company shares to be issued (including pursuant to the exercise and conversion of company warrants) to any approved financing source pursuant to an approved financing. The approved financing source means a person engaged by the company after the date of the first amendment to act as an investment bank, financial adviser, broker or similar adviser in connection with any financing which has been approved by Focus Impact in accordance with the terms of the business combination agreement. The reverse split factor means an amount equal to the lesser of (a) the quotient obtained by dividing the final company share price by 63.16 cents and (b) one. The final company share price means the closing price of the subordinated voting company shares on the Cboe Canada stock exchange, as of the end of last trading day prior to the closing (and if there is no such closing price on the last trading day prior to the closing, the closing price of the subordinated voting company shares on the last trading day prior to the closing on which there is such a closing price), converted into United States dollars based on the Bank of Canada daily exchange rate on the last business day prior to the closing. The adjusted exercise price means $11.50 multiplied by a fraction (x) the numerator of which is the number of shares of common stock purchasable upon the exercise of the warrants immediately prior to such adjustment, and (y) the denominator of which shall be the number of shares of common stock purchasable immediately thereafter.

Concurrently with the execution of the first amendment, Focus Impact and Sponsor entered into amendment No. 1 (the sponsor side letter amendment) to that certain letter agreement, dated as of Sept. 12, 2023, pursuant to which, among other things, sponsor agrees and acknowledges that (i) each share of Class B common stock (other than those subject to forfeiture pursuant to the sponsor side letter) shall convert only into a number of New PubCo common shares (and not any other Focus Impact shares prior to such automatic conversion) equal to the reverse split factor and (b) that each private placement warrant shall only convert into the right to exercise such warrants for New Pubco common shares equal to the reverse split factor. No fractional shares shall be issued and the total number of New PubCo common shares to be received by sponsor shall be rounded down to the nearest whole share after aggregating all New PubCo common shares held by sponsor. As a third party beneficiary of the sponsor side letter, the company consented in all respects to the sponsor side letter amendment.

About Devvstream Holdings Inc.

Founded in 2021, Devvstream is a leading authority in the use of technology in carbon project development. The company's mission is to create alignment between sustainability and profitability, helping organizations achieve their climate initiatives while directly improving their financial health. With a pipeline of over 140 technology-based projects worldwide, Devvstream makes it simple for corporations and governments to address their net-zero goals while generating premium carbon credits in the process. Devvstream takes a programmatic approach to evaluating project opportunities, and co-develops projects spanning energy-efficient buildings, facilities and homes, industrial facilities, LED (light-emitting diode) systems, EV (electric vehicle) charging stations, and technologies to seal oil wells. The company's end-to-end proprietary solution removes the risk and complexity from every step, allowing organizations to move from project ideation to credit monetization with ease. The result is a multiyear stream of carbon credit revenue that transforms sustainability into a financial investment. In addition, for organizations that need help to offset their most difficult-to-reduce emissions, it also provides premium carbon credits for purchase.

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