Colabor Group Inc. Provides Corporate Update

Executive Summary

• Colabor Group Inc. reports it cannot provide a non‑binding letter of intent for the required $15 M equity refinancing, jeopardizing compliance with its forbearance agreements.
• The company is seeking further amendments to extend forbearance until Jan 30 2026 and is exploring all alternatives, including potential creditor protection filing.
• Failure to secure financing or a strategic alternative could materially impair operations and significantly reduce shareholder value.

Key Details

• Forbearance background: On Oct 16 2025 the Company extended its forbearance agreements with senior lenders and Investissement Québec to Jan 30 2026, requiring $1 M liquidity and a minimum trailing‑12‑month EBITDA, with monthly testing.
• Refinancing requirement: Lenders required non‑binding letters of intent satisfactory to them for refinancing the credit facilities and raising at least $15 million in equity by Dec 15 2025.
• Current status: Colabor has been unable to obtain such a letter of intent and does not expect to do so.
• Negotiations ongoing: The Company continues talks with senior lenders and Investissement Québec to further amend the forbearance agreements, seeking additional short‑term liquidity to fund operations while the strategic alternatives review proceeds.
• Potential outcomes: If no satisfactory refinancing or strategic alternative is achieved, Colabor may seek protection under applicable creditor protection laws.
• Risk disclosure: Investors are warned that the value of their investment could decrease materially if strategic alternatives fail or creditor protection is pursued.

Notable Quotes

(No direct quotes were provided in the release.)