Mr. Paul Bissett reports

ELEVATE SERVICE GROUP ANNOUNCES CLOSING OF UPSIZED $10 MILLION BOUGHT DEAL EQUITY OFFERING AND SECURES TERM SHEET FOR $25 MILLION ACQUISITION FACILITY

Elevate Service Group Inc. has closed its previously announced bought deal private placement of 5,264,000 common shares in the capital of the company at a price of $1.90 per common share for aggregate gross proceeds of approximately $10.0-million. As previously announced on June 26, 2026, the offering was upsized from $7.0-million based on strong investor demand. Beacon Securities Ltd. acted as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters that included Canaccord Genuity Corp. and Raymond James Ltd.

The company has also signed a term sheet with its Schedule I Canadian banking partner for a proposed credit facility of up to $25-million to provide committed and flexible financing for future acquisitions. The proposed terms of the acquisition facility are outlined below and are expected to be finalized in a definitive agreement by early August, 2026. Utilization of the acquisition facility will remain consistent with the company's conservative approach to senior leverage. The completed offering and proposed acquisition facility significantly increase the company's financial capacity to execute on its disciplined acquisition strategy.

Elevate intends to continue pursuing high-quality, profitable businesses with recurring customer relationships, attractive margins and platform synergy opportunities. The company's strategy is focused on technical service businesses with experienced management teams that complement existing operations, add capabilities and support expansion across attractive markets serving national customers.

"The strong institutional demand for this financing, together with the continued support of our banking partner, reinforces confidence in the long-term opportunity to consolidate Canada's fragmented facility services sector," said Paul Bissett, chief executive officer of Elevate. "With a strengthened balance sheet and access to committed acquisition capital, we are positioned to execute on an active pipeline of opportunities while maintaining a disciplined approach to capital allocation and leverage."

"Our objective is to build an integrated national platform capable of delivering superior customer outcomes, sustainable growth and long-term shareholder value," said Romeo Di Battista Jr., executive chairman of Elevate. "We believe the facility services industry is entering a period where scale, technology and operating excellence will differentiate market leaders. Our strategy is to partner with exceptional business owners and provide them with access to capital, shared systems and national customer relationships to accelerate growth."

Proposed acquisition credit facility

The proposed acquisition facility is expected to include a revolving term loan available to be drawn in multiple tranches to finance future acquisitions. Once drawn, individual tranches under the acquisition facility are expected to amortize over seven years. The proposed acquisition facility is also expected to increase availability under the company's operating line from $6.0-million to $7.5-million and reduce the interest rate applicable to the operating line from prime plus 1.25 per cent to prime plus 1.00 per cent. The acquisition facility is expected to provide Elevate with a flexible source of committed capital while allowing the company to maintain its historically conservative approach to senior leverage. Finalization of the acquisition facility remains subject to the negotiation and execution of definitive documentation, customary closing conditions and receipt of all applicable approvals. The company expects the acquisition facility to be finalized during the third quarter of 2026.

Additional offering details

The net proceeds of the offering will strengthen Elevate's balance sheet and provide capital to support the company's acquisition pipeline, organic growth initiatives and working capital requirements, and broader strategy of consolidating the fragmented facilities management and essential commercial service sector. The securities issued pursuant to the offering are subject to a statutory hold period of four months from the closing date of the offering in accordance with applicable Canadian securities laws. In connection with the offering, the company paid the underwriters cash fees of $578,322 and issued 309,120 compensation options. Each compensation option entitles the holder to acquire one common share at the issue price for a period of 24 months following the closing of the offering.

About Elevate Service Group Inc.

Elevate is a national facility management and essential commercial service platform focused on building an integrated platform through disciplined acquisitions and organic growth. Through its operating companies, Elevate brings over 20 years of experience serving national, blue-chip customers. The company is building a scalable platform supported by shared infrastructure, technology and operational best practices. This approach drives efficiencies, expands service offerings and delivers superior customer outcomes. Elevate trades on the TSX Venture Exchange under the ticker SERV.

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