Mr. Samuel Cochrane reports

AUTOCANADA ANNOUNCES AGREEMENTS TO DIVEST 13 U.S. DEALERSHIPS

AutoCanada Inc. has entered into definitive agreements to sell 13 franchised dealerships in its U.S. operations segment for expected aggregate proceeds of approximately $82.7-million, which includes approximately $6.4-million for real estate.

The dealerships being sold across multiple purchasers include:

• Autohaus of Peoria (consisting of Audi, Mercedes-Benz, Porsche and Volkswagen dealerships);
• Bloomington Automall (consisting of Audi, Lincoln, Mercedes-Benz, Subaru and Volkswagen dealerships);
• Chevrolet of Palatine;
• Crystal Lake Chrysler Dodge Jeep Ram;
• Hyundai of Palatine;
• North City Honda.

The transactions are subject to customary closing conditions, including OEM (original equipment manufacturer) approvals, and are anticipated to close in the second half of 2025.

As previously disclosed, the company classified its U.S. operations segment as a discontinued operation in its financial statements for the year ended Dec. 31, 2024. AutoCanada remains actively engaged in the divestiture of its remaining four U.S. dealerships, consisting of Hyundai of Lincolnwood, Kia of Lincolnwood, Toyota of Lincoln Park and Toyota of Lincolnwood.

About AutoCanada Inc.

AutoCanada's continuing operations consist of 64 franchised dealerships in Canada, comprising 23 brands in eight provinces, as well as 29 collision centres. AutoCanada's franchised dealerships currently sell Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, Mini, Nissan, Porsche, Ram, Subaru and Volkswagen branded vehicles. In 2024, the company's Canadian dealerships sold approximately 85,000 new and used retail vehicles. In addition, AutoCanada's collision centres offer an opportunity for the company to retain customers at every touch point within the automotive ecosystem.

AutoCanada's U.S. operations segment, operating as Leader Automotive Group, operates 17 franchised dealerships comprising 15 brands in Illinois, United States. Leader currently sells Audi, Chevrolet, Chrysler, Dodge, Honda, Hyundai, Jeep, Kia, Lincoln, Mercedes-Benz, Porsche, Ram, Subaru, Toyota and Volkswagen branded vehicles. In 2024, the company's U.S. dealerships sold approximately 12,900 new and used retail vehicles.

We seek Safe Harbor.