Mr. Jeffrey Hasham reports

REDISHRED CAPITAL CORP. ANNOUNCES THE ACQUISITION OF MDK RECYCLING LLC

Redishred Capital Corp. has completed the acquisition of MDK Recycling LLC, effective Jan. 2, 2024. MDK is based in Michigan, and offers paper and hard drive shredding, product destruction, paper recycling, and scanning services. MDK earned approximately $700,000 (U.S.) in revenue during fiscal 2023.

The company also wants to highlight the 2023 pro forma EBITDA (earnings before interest, taxes, depreciation and amortization) margin of MDK, which it estimates to be in the range of 30 per cent to 35 per cent.

The acquisition includes on-site paper shredding trucks, box trucks, containers, scanning and baling equipment, client relationships, and other assets used in the shredding, paper recycling and scanning businesses. Redishred views this acquisition as accretive to its cash flows and earnings on a per-share basis.

Kasia Pawluk, senior vice-president of finance and acquisitions, noted: "The acquisition of MDK allows us to expand both our shredding and scanning footprint in the United States. It provides Redishred with a platform to support our growth and enter the Detroit, Mich., market. We want to thank Brian Miotke for founding this business and the team that he has built, and we wish him well in the next stage of his life and career."

The purchase price for this acquisition, including earn-outs, is estimated to be between $500,000 (U.S.) and $800,000 (U.S.), depending on the performance of MDK relative to earn-out targets. The company financed this acquisition through cash on hand.

About Redishred Capital Corp.

Redishred Capital is the owner of the Proshred trademarks and intellectual property in the United States and internationally. Proshred shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. Proshred is a pioneer in the mobile document destruction and recycling industry, and has the ISO 9001:2015 certification. It is Proshred's vision to be the system of choice, and provide shredding and recycling services on a global basis. Proshred currently services over 41 markets in the United States. Redishred Capital grants Proshred franchise businesses in the United States. Redishred Capital also operates 17 corporate shredding businesses directly. The company's plan is to grow its business by way of both franchising, and the acquisition and operation of document destruction businesses that generates stable and recurring cash flow through a scheduled client base, continuous paper recycling and concurrent unscheduled shredding service.

We seek Safe Harbor.