Mr. Rob Anson reports

FOBI AI INC. ANNOUNCES CLOSING OF THE SALE OF GERMAN SUBSIDIARY

Further to Fobi AI Inc.'s news release dated May 28, 2025, it has closed the sale of all of its shares in Fobi AI Germany GmbH (the acquired company), its wholly owned German subsidiary, to an arm's -length third party purchaser pursuant to the terms of share purchase agreement dated May 28, 2025.

Pursuant to the agreement, the purchaser paid to Fobi an aggregate of 1.54 million euros consisting of a cash purchase price in the amount of 1.4 million euros and an additional purchase price in the amount of 140,000 euros, which was paid by the purchaser to the acquired company on behalf of Fobi after assumption by the purchaser of Fobi's obligations to pay such amount per the licence (as defined below).

Pursuant to the agreement, the acquired company granted Fobi a licence to use the Passcreator software for the payment of an aggregate price of 140,000 euros. Such payment obligation was assumed by the purchaser pursuant to the agreement. The licence is non-exclusive, worldwide, irrevocable and sublicensable. The term of the licence is 48 months after closing of the transaction, without the right to terminate during these 48 months.

No finder's fee was paid pursuant to the agreement.

The company is currently subject to an ongoing failure-to-file cease trade order ordered by the British Columbia Securities Commission on Nov. 1, 2024 (the FFCTO). The FFCTO is applicable to the securities of the company. The transaction involves a sale of the securities of the acquired company, being a private German limited liability company not publicly listed on any stock exchange.

About Fobi AI Inc.

Founded in 2017 in Vancouver, Canada, Fobi is a leading AI and data intelligence company that provides businesses with real-time applications to digitally transform and future-proof their organizations. Fobi enables businesses to action, leverage and monetize their customer data by powering personalized and data-driven customer experiences, and drives digital sustainability by eliminating the need for paper and reducing unnecessary plastic waste at scale.

Fobi works with some of the largest global organizations across retail and CPG (consumer packaged goods), insurance, sports and entertainment, casino gaming, and more. Fobi is a recognized technology and data intelligence leader across North America and Europe, and is the largest data aggregator in Canada's hospitality and tourism industry.

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