Mr. Tyler Hatch reports

EVERYDAY PEOPLE FINANCIAL CORP. COMPLETES STRATEGIC TRANSITION TO FEE-FOR-SERVICE MODEL WITH SALE OF LEGACY HOME INVENTORY

Everyday People Financial Corp. sold its remaining EP Homes inventory to EAM Enterprises Inc. on June 30, 2025, completing its multiyear strategy to exit non-core operations and fully transition to a fee-for-service business model.

Under the terms of the transaction, EAM acquired the company's outstanding home inventory for $3,954,959, representing a premium to the book value of $3,732,806 and generating a gain on sale of approximately $222,153. Proceeds from the sale were used to fully retire $3,031,378 in legacy housing-related debt, which carried annual interest rates ranging from 5.74 per cent to 13.5 per cent.

"This transaction is both financially and strategically significant," said Gordon Reykdal, executive chairman of Everyday People. "It removes the last vestiges of the legacy EP Homes program, strengthens our balance sheet, eliminates high-cost debt, and allows us to focus exclusively on scaling our two core platforms in revenue cycle management and digital EP financial services pillars."

The sale also eliminates the company's exposure to real estate credit risk and capital-intensive assets, in line with its strategic shift toward high-margin, technology-enabled, fee-for-service solutions.

"This is a pivotal step forward," added Tyler Hatch, co-chief executive officer of the company's financial services division. "Our goal has always been to build a scalable, compliant and capital-light platform. With this transaction, we are now positioned to reinvest fully into our core businesses and pursue growth opportunities without the drag of non-core assets."

The company will report the gain on sale in its coming financial statements and expects the transaction to improve key financial metrics, including debt-to-equity ratio, interest expense and operating margin.

Related-party transaction disclosure

The purchaser, EAM, is a private company wholly owned by Carrie Reykdal, the spouse of Gordon Reykdal, who is the executive chairman and a director of the company. Accordingly, the sale of the remaining EP Homes inventory to EAM constitutes a related-party transaction under TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions).

The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a), respectively, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction does not exceed 25 per cent of the company's market capitalization; however, the company voluntarily obtained independent appraisals on the EP Homes inventory to support the fairness of the transaction.

In addition, shareholder approval is not required under TSX-V Policy 5.3 (Acquisitions and Dispositions of Non-Cash Assets) as the transaction does not exceed the thresholds set out therein that would trigger a requirement for disinterested shareholder approval.

The company's board of directors consists of a majority of independent directors who have approved the transaction.

About Everyday People Financial Corp.

Everyday People is a technology-driven financial service company with a mission to help individuals and businesses manage money better. First established in 1988, it has a work force of over 625 people operating in the United Kingdom and Canada, providing fully fee-for-service solutions across two business pillars operating in Canada and the United Kingdom.

Revenue cycle management, which helps organizations recover receivables and streamline billing processes without purchasing consumer debt, and financial services, which provide digital tools and credit access programs that support Canadians on their financial journey, all without lending money.

Founded on the belief that everyone deserves a second chance to rebuild financial health and wealth, the company is committed to providing affordable, innovative and responsible financial solutions that create lasting value for its clients, customers and shareholders.

It is changing the way people manage money by enhancing its client and consumer services with its own affordability assessment programs with specialized financial products and literacy programs. It is helping everyday people rebuild their financial health for generational wealth. It stands for creativity and entrepreneurship. Its combination of companies, products and services has been established to ensure it can fulfill consumers' financial needs and service them in a low-cost and effective manner.

We seek Safe Harbor.