Mr. Shafin Tejani reports

VICTORY SQUARE TECHNOLOGIES PROVIDES UPDATE ON PORTFOLIO COMPANY HYDREIGHT'S SIGNIFICANT GROWTH AND MILESTONES

Victory Square Technologies Inc.'s portfolio company, Hydreight Technologies Inc., has recently achieved record-breaking growth and made strategic advancements. Hydreight, a fast-growing mobile clinical network and medical platform, has significantly expanded its operations, driving both top-line revenue and adjusted earnings before interest, taxes, depreciation and amortization growth.

Hydreight reported top-line revenue of $10.46-million in the first six months of 2024, reflecting a year-over-year increase of 29 per cent. The company also achieved generally accepted accounting principle revenue of $4.10-million in second quarter 2024, representing a 52-per-cent increase compared with Q2 2023. Most notably, the company reported a positive adjusted EBITDA of $218,000 for Q2 2024, compared with a loss of $456,000 in the same quarter last year, highlighting its move toward profitability.

Key business milestones and growth initiatives:

• Launch of telemedicine and e-commerce solution (VSDHOne, read as VSDH-One): Hydreight, in partnership with two other companies, introduced its VSDHOne telemedicine and e-commerce platform, enabling businesses to launch direct-to-consumer health care brands across all 50 states. The solution simplifies market entry by offering a turnkey package, including compliance, doctor networks and telemedicine infrastructure. In the first 90 days of launch, VSDHOne sold over 200 licences nationwide.
• Expansion of national med spa partnerships: Hydreight secured strategic partnerships with leading medical spa brands, collectively selling nearly 700 locations across the United States, with 186 locations already operational. Hydreight's proprietary platform allows these businesses to seamlessly offer compliant mobile health care services alongside their bricks and mortar operations.
• Platform and technology growth: Hydreight's technology continues to advance, providing an all-in-one health care solution that bridges the gap between providers and patients. The platform empowers independent nurses, medical professionals and spa operators to deliver at-home or mobile health care services, with full compliance across state regulations. The platform also facilitates pharmacy orders and provides a network of licensed health care professionals.

Strategic focus and market outlook: Shane Madden, chief executive officer of Hydreight, commented on the company's progress: "We are incredibly proud of the growth we've achieved in 2024. Our focus on technology investments and operational infrastructure has allowed us to become the go-to platform for mobile health care services. With the success of our VSDHOne platform and key partnerships, we're excited about the future, especially the significant cash flow and expansion opportunities on the horizon."

With the U.S. home health care market projected to reach $340-billion by 2027, Hydreight is well positioned to continue capitalizing on this sector. Its comprehensive technology platform, designed for both health care professionals and businesses, ensures regulatory compliance while offering patients greater convenience and personalized care.

As Hydreight continues to expand its offerings, the company is focused on growth opportunities, profitability and strategic partnerships. Hydreight's platform will enable further penetration into the health care market, enhancing its reputation as a leader in mobile medical services across the United States.

Additional corporate highlights:

• Hydreight launched a normal course issuer bid in August, 2024, reflecting its commitment to enhancing shareholder value.
• The company's total processed services and pharmacy orders have grown by 23 per cent and 72 per cent, respectively, compared with the same period the past year, underscoring its strong market demand and operational growth.
• Hydreight has maintained compliance across the complex health care regulatory landscape in all 50 states, ensuring its platform adheres to state-specific regulations and corporate practice of medicine laws.

With its growing network of over 2,500 nurses and more than 100 doctors, Hydreight continues to lead the charge in offering innovative, flexible health care solutions that prioritize patient convenience and provider flexibility. The company's white-label solutions and partnerships further solidify its presence as a key player in the evolving home health care and medical spa sectors.

Shafin Diamond Tejani, chief executive officer of Victory Square, commented: "We are incredibly proud of Hydreight's tremendous progress over the past year. Their ability to consistently innovate and meet the growing demand for flexible health care services is a testament to their leadership and the strength of their platform. Victory Square remains committed to supporting Hydreight as they continue scaling and evolving in the rapidly growing home health care industry."

For more detailed financial information, please refer to Hydreight's full financial statements and management's discussion and analysis available on SEDAR+.

About Victory Square Technologies Inc.

Victory Square builds, acquires and invests in promising start-ups across various industries, including artificial intelligence, gaming, blockchain, clean technology and digital health. Through its dynamic ecosystem, Victory Square nurtures and scales innovative companies, creating long-term value for shareholders.

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