Pegasus Mercantile FFCTO Status Update

Executive Summary

• Pegasus Mercantile reports a continued Failure‑to‑File Cease Trade Order (FFCTO) issued by the British Columbia Securities Commission, keeping its shares suspended on the Canadian Securities Exchange.
• The company is working with its auditor and audit committee to complete and file its annual financial statements and MD&A for the year ended September 30 2025; weekly default status reports will continue.
• No other material information has been omitted, and management is reviewing due‑diligence materials for pending letters of intent.

Key Details

• FFCTO Issuance: BCSC issued a Failure‑to‑File Cease Trade Order on February 4 2026 because the annual financial statements and MD&A were not filed on SEDAR by the January 28 2026 deadline.
• Trading Suspension: The Canadian Securities Exchange suspended trading of Pegasus Mercantile’s shares as a direct result of the FFCTO.
• Current Status: The FFCTO remains in effect until all required filings are completed and the BCSC revokes the order.
• Remediation Efforts: Management and the audit committee are actively working with the external auditor to gather necessary information and finalize the required documents.
• Reporting Commitment: Pegasus will continue issuing weekly default status updates to keep shareholders informed.
• Material Information Disclosure: The company confirms that no other material information has been withheld from public disclosure.
• Future Transactions: Management is reviewing due‑diligence materials for letters of intent already in the pipeline, indicating potential future deals once the filing issue is resolved.

Notable Quotes

• “The Company's management, together with its audit committee, has been working diligently with its auditor to provide all necessary information and complete the Required Documents to release the Annual Financial Filings.” – Pegasus Mercantile Management

This release contains forward‑looking statements regarding the company’s ability to cure its filing default and the expected timing of FFCTO revocation.