Dr. Richard Lu reports

POWERBANK ACQUIRES NEW YORK SOLAR PORTFOLIO WITH US$32.5 MILLION CONSTRUCTION VALUE AND US$13 MILLION IN EXPECTED U.S. FEDERAL TAX CREDITS

Powerbank Corp. has executed repurchase agreements for the Gainesville and Highway 28 projects located in New York State through its U.S. subsidiary Abundant Solar Power Inc.

The Highway 28 project is 6.9 megawatts and is expected to be construction ready in the third quarter of 2026. It has secured its interconnection agreement, all major discretionary permits and has been approved for NYSERDA incentives under the NY-Sun program in the amount of $893,445 (U.S.) and is expected to be eligible for a further approximately $1,518,660 (U.S.) in NYSERDA incentives through the Inclusive Community Solar Adder program. The project is also expected to qualify for grants issued by the Catskills Watershed Corp.

As EPC contractor on the Highway 28 project, Abundant Solar Power Inc. has commenced onsite prep work in advance of full construction mobilization.

The Highway 28 project is expected to remain eligible for the United States federal investment tax credits for energy projects under the One Big Beautiful Bill Act of 2025, as physical work began on the project prior to the July 4, 2026, deadline and the physical work is expected to meet the requirements under the IRS Physical Work Test. The project has a total construction value of approximately $17-million (U.S.) and an expected ITC value of approximately $8-million (U.S.).

The Highway 28 project was acquired for a total purchase price of $1,249,488 (U.S.), to be paid in milestone payments. The acquisition includes all project assets.

The Gainesville project is seven MW and is expected to be construction ready in 2027. It has secured its interconnection agreement and is currently in permitting. The project is expected to qualify for grants issued under NYSERDA's NY-Sun program. The project company, which is owned by Abundant Solar Power Inc., is currently party to a lawsuit as petitioner, known as Article 78 Index No. 9002873, involving an appeal of the denial of petitioner's variance application.

The Gainesville project is expected to remain eligible for the United States federal investment tax credits for energy projects under the One Big Beautiful Bill Act of 2025, as physical work began on the project prior to the July 4, 2026, deadline and the physical work is expected to meet the requirements under the IRS Physical Work Test. The project has a total construction value of approximately $15.5-million (U.S.) and an expected ITC value of approximately $5-million (U.S.).

The Gainesville project was acquired for a total purchase price of $1,146,580 (U.S.), to be paid in milestone payments. The acquisition includes all project assets.

Investment tax credits have been available for solar projects since 2006, providing a 30-per-cent tax credit for commercial solar installations that meet specific requirements, with opportunities for ITC bonus adders. The One Big Beautiful Bill Act, signed into law on July 4, 2025, specifies that the Section 48E Investment tax credit for solar facilities will be phased out, and projects which have begun construction on or before July 4, 2026, will remain eligible for the tax credits.

Once completed, the projects will be operated as community solar projects. Community solar is a group of solar panels with access to the local electricity grid. Once the panels are turned on and generating electricity, clean energy from the site feeds into the local power grid. Depending on the size and number of panels the project has, dozens or even hundreds of renters and homeowners can save money from the electricity that is generated by the project. By subscribing to a project, a homeowner earns credits on their electric bill every month from their portion of the solar power that's generated by the project, accessing the benefits of solar without installing panels on their home. This allows homeowners to realize a reduced cost per kW/hour from the power they consume versus standard utility rates.

The projects were previously sold to an investor as part of a larger transaction announced on Jan. 6, 2025, and have now been reacquired as initially announced on April 13, 2026.

There are several risks associated with the development of the projects. The development of any project is subject to required permits, the continued availability of third party financing arrangements for the company, the risks associated with the construction of a solar power project and the degradation of solar panels over time. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power projects, which could result in future projects no longer being economic.

About Powerbank Corp.

Powerbank is a vertically integrated and independent North American energy company helping to power the digital economy. The company develops, builds, owns, and operates solar and battery energy storage systems that deliver reliable and resilient power to the electricity grid, commercial and industrial clients, and municipal and residential off-takers.

We seek Safe Harbor.