Everyday People issues 2.22 million shares for debt

Mr. Barret Reykdal reports EVERYDAY PEOPLE CLOSES SHARES FOR DEBT TRANSACTION Everyday People Financial Corp. has closed its share-for-debt transaction to settle approximately $1.4-million of outstanding debt owed to EAM Enterprises Inc. through the issuance of 2,223,651 common shares of the company at a deemed price of 63 cents per share, as previously announced on June 30, 2025. This closing transaction follows prior debt settlements with EAM, whereby the company settled $2-million and $4-million of outstanding debt through the issuance of 2,439,024 shares at 82 cents per share and 3,636,364 shares at $1.10 per share, respectively, as announced on Jan. 20, 2025, and Jan. 29, 2025. EAM is a private company controlled by Gordon Reykdal, executive chairman and director of the company. The debt settlement is intended to strengthen the company's balance sheet by reducing liabilities and preserving cash resources to support operations and strategic growth. Upon issuance of the settlement shares, EAM, together with Mr. Reykdal, will hold approximately 21 per cent of the company's issued and outstanding common shares, up from approximately 20 per cent prior to the closing of the debt settlement. The transaction does not result in the creation of a new control person or insider of the company. Upon completion of the settlement shares, the company now has a total of 128,495,414 common shares issued and outstanding. The newly issued shares will be subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable securities laws and TSX Venture Exchange policies. Closing of the debt settlement remains subject to final acceptance by the TSX-V. Related party transaction disclosure The issuance of the settlement shares to EAM constitutes a related party transaction under 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 debt settlement was reviewed and approved by the company's independent directors. Voting trust agreement disclosure On Aug. 31, 2022, Mr. Reykdal, EAM, the company and Odyssey Trust Company, as trustee, entered into a voting trust agreement pursuant to which Mr. Reykdal and EAM have appointed the trustee as voting trustee of any common shares beneficially owned by Mr. Reykdal or his spouse, or over which Mr. Reykdal or his spouse exercise control or direction, directly or indirectly, including those held by EAM, above 9.9 per cent of the issued and outstanding common shares of the company. This voting trust agreement remains in full force and effect. Details regarding the voting trust agreement are described in the company's public filings available on SEDAR+. Issuance of restricted share units The company is also pleased to announce that the board of directors has approved the grant of 225,000 restricted share units (RSUs) to one officer, pursuant to its omnibus share incentive plan, for his appointments as chief operating officer, and subsequent appointment as co-chief executive officer, financial services, for his services. Each RSU entitles the recipient to receive, upon vesting, one common share in the capital of the company. The RSUs shall vest one year from the date of grant. The plan provides for the grant RSUs, options, performance share units (PSUs) and deferred share units (DSUs). 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 annually approved by the company's shareholders at its annual and special meeting held July 25, 2024, and subsequently received annual approval from the TSX Venture Exchange on July 29, 2024. 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, the company has a work force of over 650 people operating in the United Kingdom and Canada, providing fully fee-for-service solutions across two business pillars operating in Canada and the U.K. Revenue cycle management (RCM) helps organizations recover receivables and streamline billing processes without purchasing consumer debt, and financial services provide digital tools and credit access programs that support Canadians on their financial journey, all without lending money. 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 its 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. It is helping everyday people rebuild their financial health for generational wealth. The company stands for creativity and entrepreneurship. Its combination of companies, products and services has been established to ensure the company can fulfill consumers' financial needs and service them in a low-cost and effective manner. We seek Safe Harbor.