Mr. Ramin Heydarpour reports

YNVISIBLE TO SELL ROLL-TO-ROLL ASSETS TO CELLFION FOR CAD$960,000 IN LINE WITH MANUFACTURING STRATEGY

Ynvisible Interactive Inc.'s wholly owned subsidiary, Ynvisible Production AB, has entered into an asset transfer agreement with Stockholm-based Cellfion AB to sell its roll-to-roll assets located in Norrkoping, Sweden. The purchase price is $960,000, payable in cash. Closing is scheduled to take place during the month of October, 2026. Ynvisible will retain all of its intellectual property and inventory.

Transaction highlights

• Assets sold: the Norrkoping roll-to-roll production line and related equipment, the site's service contracts and premises lease, and the employment of production staff, who will transfer to Cellfion;

• Assets retained: all of Ynvisible's intellectual property, including its electrochromic display technology and know-how, and all inventory;

• Ongoing relationship: at closing, Ynvisible and Cellfion will enter into a profit-sharing agreement covering business generated from the transferred assets, and a service agreement covering potential services from Cellfion to Ynvisible in the future.

Strategic significance

The transaction is in line with Ynvisible's manufacturing strategy. Custom, lower-volume production is concentrated at the company's customer solutions centre in Charneca de Caparica, Portugal, while high-volume manufacturing is carried out with its global partner, CCL. With that model in place, the company's own roll-to-roll line in Norrkoping is no longer a core asset. Its sale converts fixed assets into cash while preserving a recurring economic interest through the profit-sharing agreement.

The transaction is expected to reduce annual operating expenses by more than $800,000 and strengthen the company's balance sheet, allowing Ynvisible to focus resources on its smart-label programs and commercial growth.

"This sale completes the shift to our manufacturing model: custom, lower-volume work in Portugal and high-volume production with CCL," said Ramin Heydarpour, chairman and chief executive officer of Ynvisible. "We keep all of our IP and inventory, and turn the Norrkoping assets into cash and a profit share. Cellfion gets a proven line and a trained team, and we stay connected to its success through the profit-sharing agreement."

Closing

Closing is conditional on Cellfion entering into a binding agreement with the landlord for the Norrkoping premises. Cellfion and the landlord have agreed on terms, and signing is expected before closing. If the condition is not met or waived by the closing date, either party may terminate the agreement. Ynvisible Interactive Inc. guarantees its subsidiary's obligations under the agreement.

We seek Safe Harbor.