Everyday People closes ACT acquisition

Mr. Gordon Reykdal reports EVERYDAY PEOPLE FINANCIAL CLOSES ACT ACQUISITION EXPANDING ITS UK RCM PLATFORM Everyday People Financial Corp.'s wholly owned subsidiary, BPO Collections Ltd., has successfully completed the acquisition of ACT Credit Management Ltd. as of Jan. 7, 2026. The acquisition follows approval by the Financial Conduct Authority (the FCA) in the United Kingdom received on Dec. 16, 2025, in connection with the share purchase agreement dated Nov. 6, 2025. "The successful closing of the ACT acquisition marks a significant milestone and our fifth acquisition in expanding our U.K. revenue cycle management (RCM) operations," said Graham Rankin, co-chief executive officer RCM (U.K.) of the company. "ACT's strong reputation and operational expertise meaningfully enhance our RCM platform and align with our disciplined acquisition strategy. We anticipate ACT to contribute an annual EBITDA in the range of approximately $750,000 to $1.0-million, with anticipated revenue to be in the range of $6.0-million to $9.0-million, further supporting the company's steady growth through targeted acquisitions." Under the terms of the purchase agreement, BPO acquired 100 per cent of the issued and outstanding shares in ACT. The company did not assume any of ACT's existing debt. The acquisition was financed through existing cash flow, and no shares were issued. Founded over a decade ago, ACT provides comprehensive debt collection and credit management services across the U.K., and is authorized and regulated by the FCA. Its client base spans multiple industries, offering specialized services in debt recovery, tracing, credit reporting and legal enforcement. Shares for debt On Jan. 8, 2026, the company entered into debt settlement agreements with four independent directors of the company to settle accrued directors' fees. Pursuant to the debt settlement, the company has agreed to settle an aggregate of $291,500 in unpaid directors' fees in 2025 through the issuance of an aggregate of 435,075 common shares in the capital of the company at a deemed price of 67 cents per common share. The settlement shares will be issued in full and final satisfaction of the debt. This initiative reflects the company's continuing efforts to enhance its financial position by reducing liabilities and preserving cash to support operational needs and drive strategic growth. The transaction constitutes a shares for debt transaction pursuant to TSX Venture Exchange Policy 4.3 Shares for Debt and is subject to the acceptance of the TSX-V. The settlement shares will be subject to a hold period of four months and one day from the date of issuance, in accordance with applicable securities laws and TSX-V policies. The issuance of the settlement shares constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, as provided in sections 5.5(a) and 5.7(1)(a) of MI 61-101, since the fair market value of the settlement shares issued, and the consideration paid, does not exceed 25 per cent of the company's market capitalization. The transaction was approved by the company's disinterested directors, and the participating directors abstained from voting on the approval of the transaction. No finders' fees or commissions were paid in connection with the transaction. Quarterly issuance of shares for services The company has issued the following shares for services, pursuant to the advisory agreement and amending agreement, with an independent consultant previously disclosed on July 10, 2025. For the quarterly three-month period ending Dec. 31, 2025, the company paid the consultant $5,000 cash and an aggregate of $10,000 payable in common shares in the capital of the company. For the quarter ended Dec. 31, 2025, the company issued an aggregate of 14,202 common shares in the capital of the company at deemed prices per share as set out below, as compensation for services rendered under the agreement: $5,000 cash plus 6,849 shares at a price of 73 cents per share for October, 2025, services; Nil cash plus 7,353 shares at a price of 68 cents per share for November, 2025, services; No cash or shares were issued for December, 2025, services. The shares are subject to a four-month-and-one-day hold period in accordance with applicable securities laws and policies of the TSX-V. The consultant is an arm's-length party to the company, and the issuance of the shares does not constitute a related party transaction or result in the creation of a new control person or insider of the company. Subject to TSX-V approval, the company will issue a news release at least once per calendar quarter disclosing the number of common shares issued and the deemed value per common share in exchange for the services rendered. This news release is being issued in accordance with Section 6.2(m)(i) of TSX-V Policy 4.4. As of the date of this news release the company has 129,201,636 common shares issued and outstanding. Issuance of restricted share units On Dec. 31, 2025, as previously approved by the board, the company issued 37,500 RSUs to one officer pursuant to the terms of the company's omnibus share incentive plan. Each RSU entitles the holder to receive one common share upon vesting. These RSUs will vest one year from the grant date. Omnibus share incentive plan The company's plan provides for the grant RSUs, options, performance share units and deferred share units. The plan includes a rolling stock option plan component that sets the maximum number of common shares in the capital of the company reserved for issuance, in the aggregate, pursuant to the exercise of options granted thereunder, together with the number of common shares reserved for issuance pursuant to the settlement of share units and DSUs granted under the plan and the number of common shares reserved for issuance pursuant to any other security-based compensation arrangement of the company, at 10 per cent of the number of common shares issued and outstanding on a non-diluted basis from time to time. In addition, the plan sets the maximum number of common shares reserved for issuance, in the aggregate, pursuant to the settlement of share units and DSUs granted under the plan at five million common shares. The company's plan was last annually approved by the company's shareholders at its annual and special meeting held Sept. 29, 2025, and subsequently received annual approval from the TSX Venture Exchange on Sept. 30, 2025. About Everyday People Financial Corp. Everyday People Financial is a technology-driven financial services company with a mission to help individuals and businesses manage money better. First established in 1988, we have a work force of over 600 people operating in the United Kingdom and Canada providing fully fee-for-service solutions across two business pillars operating in Canada and the united Kingdom. RCM, which helps organizations recover receivables and streamline billing processes without purchasing consumer debt, and financial services, which provides digital tools and credit access programs that support Canadians on their financial journey. Founded on the belief that everyone deserves a second chance to rebuild financial health and wealth, the company is committed to providing affordable, innovative and responsible financial solutions that create lasting value for our clients, customers and shareholders. The company is changing the way people manage money by enhancing its client and consumer services with its own affordability assessment programs with specialized financial products and literacy programs. The company is helping everyday people rebuild their financial health for generational wealth. It stands for creativity and entrepreneurship. Its combination of companies, products and services has been established to ensure it can fulfill consumers' financial needs, and service them in a low-cost and effective manner. We seek Safe Harbor.