An anonymous director reports

MERCANTO HOLDINGS INC. REPORTS Q2 2026 FINANCIAL RESULTS AND PROVIDES COMMERCIAL UPDATE ON QUEBEC PRODUCT LAUNCHES

Mercanto Holdings Inc. today released its financial results for the second quarter (Q2) of fiscal 2026. The company's unaudited consolidated financial statements for the period ended Jan. 31, 2026, and the related management's discussion and analysis (MD&A), are available under the company's profile on SEDAR+.

Q2 2026 financial highlights:

• Revenue of $2,076,820, compared with $1,003,116 in the prior-year period (plus 107 per cent year over year);
• Gross profit of $464,845, compared with $196,413 in the prior-year period (plus 137 per cent year over year);
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $252,233, compared with negative $96,038 in the prior-year period (improvement of $348,271 to positive EBITDA);
• Net income of $177,785, compared with a net loss of $109,215 in the prior-year period (improvement of $287,000);
• The company is current on its cannabis excise tax obligations, with all amounts due paid in full and on time as of the date of this news release;
• The company has no long-term debt, other than lease liabilities;
• The company has 51,674,683 common shares outstanding as of the date of this news release, reflecting limited dilution since going public in late 2021.

Commercial update

In addition to its financial results, Mercanto provides the following update on product initiatives supporting its Quebec market strategy.

The company is set to introduce a new CBD 10-milligram (mg) capsule format (30 capsules per container) in August, 2026. The product will be sold in-store alongside Mercanto's existing CBD 50 mg capsules, expanding the company's presence in the CBD capsule category and broadening its retail offering. Management believes the lower dose format is complementary to the existing -- higher-dose -- capsules and is intended to address a different consumer segment rather than replace existing products.

Mercanto already offers CBD 50 mg and CBD 100 mg capsules on-line through the Quebec government's cannabis e-commerce platform. As of August, 2026, the company expects the full four-SKU (stockkeeping unit) CBD capsule assortment to be available on-line, consisting of:

• CBD 10 mg capsules;
• CBD 25 mg capsules;
• CBD 50 mg capsules;
• CBD 100 mg capsules.

While the complete assortment will be available on-line, sales in the category continue to be primarily driven by retail distribution. The addition of the CBD 10 mg capsules in-store expands Mercanto's retail lineup and is expected to provide incremental contribution to the company's CBD category revenue.

Mercanto is also preparing to launch an infused preroll product in June, 2026, adding to the company's presence in the infused segment, one of the faster-growing derivative categories in Quebec.

About Mercanto Holdings Inc.

Mercanto Holdings is a cannabis company focused on the Quebec market, with a strategy centred on developing, launching and commercializing cannabis products in categories where the company believes it can build a differentiated position and drive profitable growth.

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