Mr. Shant Madian reports

KRAKEN ROBOTICS ANNOUNCES CLOSING OF $402.5 MILLION PUBLIC OFFERING OF SUBSCRIPTION RECEIPTS

Kraken Robotics Inc. has successfully completed its previously announced offering of subscription receipts. Pursuant to the offering, the company issued a total of 47,353,550 subscription receipts, including 6,176,550 subscription receipts issued pursuant to the exercise in full by the underwriters (as defined below) of their overallotment option. The subscription receipts were issued at a price of $8.50 per subscription receipt, for total gross proceeds of approximately $402.5-million.

Kraken intends to use the net proceeds from the offering to partially finance the cash portion of the consideration payable in connection with the acquisition of Covelya Group Ltd., a leading international provider of mission-critical underwater technology solutions, for total consideration of approximately $615-million, excluding transaction costs and subject to customary adjustments. For additional details related to the acquisition and the offering, please see the company's news release dated March 3, 2026. The acquisition is anticipated to close in the second quarter of 2026.

Each subscription receipt entitles the holder thereof, without payment of any additional consideration or further action on the part of the holder, to receive one common share of Kraken upon the satisfaction or waiver of certain conditions, including the satisfaction of all conditions precedent to the completion of the acquisition other than the payment of the purchase price and the satisfaction of conditions precedent that by their nature are to be satisfied at completion.

The subscription receipts will begin trading on the TSX Venture Exchange under the symbol PNG.R (Cusip No. 50077N 12 8, ISIN CA 50077N 12 8 9) today.

The gross proceeds from the offering, less 50 per cent of the commission payable to the underwriters in respect of the offering and certain expenses of the underwriters, have been deposited in escrow with Computershare Trust Company of Canada, as subscription receipt agent, pursuant to a subscription receipt agreement dated March 12, 2026, between Kraken, the subscription receipt agent, and Bank of Nova Scotia and Desjardins Capital Markets, on behalf of the underwriters. If the release conditions are not satisfied or waived on or prior to 5 p.m. EST on Dec. 31, 2026, or the acquisition is otherwise terminated before that time, the holders of subscription receipts will receive a cash payment equal to the offering price of the subscription receipts plus their pro rata share of the interest actually earned on the escrowed funds during the term of the escrow and the subscription receipts will be cancelled.

The subscription receipts were offered through a syndicate of underwriters co-led by Scotiabank and Desjardins Capital Markets, and including Canaccord Genuity Corp., Jefferies Securities Inc., TD Securities Inc., Cormark Securities Inc., Raymond James Ltd. and National Bank Financial Inc.

For further information regarding the acquisition, the offering and subscription receipts, including related risk factors, refer to the company's prospectus supplement dated March 5, 2026, to the base shelf prospectus of the company dated Aug. 7, 2025. The base shelf prospectus and the prospectus supplement are accessible on the company's SEDAR+ profile.

About Kraken Robotics Inc.

Kraken Robotics is transforming subsea intelligence through 3-D imaging sensors, power solutions and robotic systems. The company's products and services enable clients to overcome the challenges in oceans -- safely, efficiently and sustainably.

Kraken's synthetic aperture sonar, subbottom imaging and lidar (light detection and ranging) systems offer best-in-class resolution, providing critical insights into ocean safety, infrastructure and geology. The company's pressure-tolerant batteries deliver high-energy density power for UUVs (unmanned underwater vehicles) and subsea energy storage.

Kraken is headquartered in Canada with offices in North America, South America and Europe, supporting clients in more than 30 countries worldwide.

About Covelya Group

Covelya Group is an international provider of underwater technology solutions and has been supporting exploration of the world's oceans and waters for over 50 years. Focused on innovation and technological development, Covelya offers market-leading solutions for its customers' challenges.

We seek Safe Harbor.