Mr. Tom Wenz reports

IMPACT DEVELOPMENT GROUP ANNOUNCES OPERATIONAL UPDATES, CHANGE TO BOARD OF DIRECTORS, AND BOARD APPROVAL OF DEBT FINANCING

Impact Development Group Inc. has provided operational updates relating to its core business of building and delivering affordable homes, the approval of the issuance of secured debentures for proceeds up to $4.5-million (U.S.), and changes to the company's board of directors. Closing of the financing is subject to approval by the TSX Venture Exchange.

Operational updates

1,067 homes delivered since inception

In continuing its leadership in the development and delivery of affordable homes, Impact is pleased to announce that it has successfully delivered its 1,067th home across all phases at the completed Sona and in-progress Santiago projects. This marks a critical milestone for Impact in establishing a recognized brand with its growing base of affordable housing customers in Panama.

Continued home delivery progress at Santiago project

Despite home delivery and collection challenges associated with the protests related to the Cobre Panama mine dispute during the month of November, Impact has successfully maintained normal development operations and has resumed home deliveries beginning in December. As of the end of the November, a total of 285 homes have been delivered to customers, accounting for an approximate combined 57 per cent of the company's development inventory in phases 4, 5 Reserva Social and La Reserva (legacy phases).

Reached 172 presold homes at legacy phases

Reflecting strong market demand and customer confidence, Impact is pleased to report that 172 of the 211 homes in development at the legacy phases, representing 81 per cent of remaining in-progress inventory, have been presold for delivery in 2024. Including deliveries, the presold homes bring the total sold homes to 457 at the Santiago project, representing 92 per cent of the 496 legacy phase homes at various stages of construction and delivery.

Listing on TSX Venture Exchange

Impact is pleased to report the successful listing of the company's common shares on the TSX-V. Marking another significant milestone of the company, Impact's common shares began trading under the symbol IMPT on Dec. 12, 2023.

Tom Wenz, chief executive officer and director of the company, commented: "I am proud of the tremendous progress IDG has achieved in the past year, and I extend my deepest gratitude to our dedicated team. Their unwavering dedication has been evidenced in maintaining operations during a challenging environment posed by the Cobre Panama protests and successfully achieving new home delivery and presales milestones. I look forward to our team's continued success as a publicly traded company on the TSX-V as we reinforce our commitment to transparency and accountability while opening new avenues for growth."

Debt financing

Impact is pleased to announce that it has approved a financing by way of the issuance of a senior secured debenture for up to $4.5-million (U.S.) with a Panamanian institutional investor to finance continuing affordable home development activities and general working capital. The financing will be financed in nine monthly tranches, with the final tranche ending in July, 2024. Each tranche will be equal to the projected capital requirements for continued development of the legacy phases. The financing shall bear interest at a rate of 12 per cent per annum, payable quarterly, with a scheduled maturity date of Nov. 30, 2025. Interest payments shall be deferred and accrued with the first interest payment occurring on Jan. 31, 2025. The financing is subject to the approval of the TSX-V and no funds representing the tranches will be advanced to Impact prior to approval by the TSX-V.

In connection with the financing, the company shall issue warrants exercisable for the purchase of common shares upon receipt of each tranche. The amount of warrants issued by the company in connection with each tranche will be equal to the Canadian dollar value of the tranche divided by the closing price of the company's common shares on the financing date of each tranche. The warrants shall have an exercise price equal to a 10-per-cent premium to the 10-day volume-weighted average trading price of Impact's common shares on the TSX-V on the 10 trading days prior to the financing date of each tranche. The warrants shall be exercisable for a period of three years from the date of issue, subject to accelerated expiry in accordance with the policies of the TSX-V.

Changes to board of directors

Impact announces the resignation of Raymond Harari as director of the company. The company would like to thank Mr. Harari for his contributions during the public listing process.

About Impact Development Group Inc.

Impact Development Group is a Panamanian-based real estate developer that provides affordable housing solutions to Panama's growing middle class supported by a long-standing subsidized government program. The vision of IHC Panama is effectuated by a vertically integrated model which co-ordinates all services necessary to develop high-quality residential and commercial buildings, including land acquisition, financing, architectural, engineering, off-site manufacturing, general contracting, property management and administration.

We seek Safe Harbor.