Elevate enters LOI to acquire electrical business

Mr. Paul Bissett reports ELEVATE SERVICE GROUP ANNOUNCES LETTER OF INTENT FOR THE STRATEGIC ACQUISITION OF AN ELECTRICAL SERVICES BUSINESS Elevate Service Group Inc. has entered into a letter of intent to acquire an Ontario-based electrical service business. The target is a specialized electrical contractor with a growing portfolio of recurring service contracts across Kitchener/Waterloo, Guelph, London and the western Greater Toronto Area. The business brings deep expertise in complex electrical work for the food processing and manufacturing sectors, a roster of repeat commercial customers, and an expanding preventative maintenance offering. The proposed transaction values the target at approximately $1.5-million, consisting of $1.2-million in Elevate common shares (calculated using an average trading price prior to closing) and $300,000 in cash. The Elevate shares issued will be subject to a two-year lock-up. The vendor will join Elevate in an operational leadership role under a new employment agreement. Strategic rationale The acquisition would directly support Elevate's strategy of building an integrated, national leader in facilities management by adding scale and operational capabilities: Revenue growth and diversification: The target would add a high-quality book of repeat customers and service orders, generating new cross-selling opportunities across Elevate's platform. Expanded skilled trades: The target's licensed electricians would reduce Elevate's reliance on regional subcontractors, further driving technician internalization efforts. Operational efficiencies: The target's facility would establish a new regional operations hub for inventory and parts storage, reducing technician travel time, increasing utilization and improving margins. The target has historically generated annual revenue between $3.2-million and $3.5-million, with the current fiscal year ending Jan. 31, 2026, revenue forecast to exceed $4-million. Earnings before interest, taxes, depreciation and amortization margins for the current fiscal year are forecast to be approximately 16 to 18 per cent. All financial information is unaudited. The transaction is anticipated to close in December, 2025, subject to customary conditions and regulatory approvals. About Elevate Service Group Inc. Elevate is a national facilities management and essential commercial service platform focused on consolidating and modernizing this fragmented sector. Through its operating companies, Elevate brings over 20 years experience as a trusted partner for national, blue-chip customers. Elevate's strategy is to integrate a portfolio of profitable operating businesses across a scalable, national platform with shared infrastructure, technology integration and operational synergies. The result is superior customer outcomes, more comprehensive services and expanded market reach. Elevate trades on the TSX Venture Exchange under the ticker SERV. We seek Safe Harbor.