Mr. Yanick Blanchard reports

COLABOR GROUP INC. PROVIDES CORPORATE UPDATE

Colabor Group Inc. today provided an update regarding its previously announced strategic alternatives review.

On Oct. 16, 2025, the company had announced an extension of its forbearance agreement with its main senior lenders and Investissement Quebec to Jan. 30, 2026 (the forbearance agreements). The amended terms required maintaining $1-million in liquidity and meeting a minimum trailing 12-month EBITDA (earnings before interest, taxes, depreciation and amortization), with monthly testing. In addition, the company had to provide, by Dec. 15, 2025, non-binding letters of intent satisfactory to the lenders for the refinancing of its credit facilities and raising of at least $15-million in equity to its main senior lenders and Investissement Quebec.

Despite all efforts engaged by the company and its external advisers in the past few months, the company has not, and does not anticipate being able to, provide a non-binding letter of intent for a refinancing that would be satisfactory to the lenders.

The company is continuing its negotiations with its main senior lenders and Investissement Quebec on further amendments to the forbearance agreements pertaining to additional forbearance of the exercise of their rights until Jan. 30, 2026. The company is further engaged in discussions with the senior lenders in order to grant additional liquidity providing short-term cash requirements necessary to pursue its business activities and ongoing review of strategic alternatives. There can be no assurance, however, that such long-term arrangements with the principal lenders and Investissement Quebec, or that such strategic alternatives can be successfully implemented.

In the event of absence of strategic alternatives, Colabor's operations could be seriously affected. The company is currently considering all available alternatives, which include the possibility of seeking protection under applicable creditor protection laws. As a result, investors should be aware that the value of their investment could decrease materially.

About Colabor Group Inc.

Colabor is a distributor and wholesaler of food and related products serving the hotel, restaurant and institutional markets or HRI in Quebec and in the Atlantic provinces, as well as the retail market. Within its operating activities, Colabor offers specialty food products such as fish and seafood, meat, as well as food and related products through its Broadline activities.

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