Mr. Mike Woodward reports

AUTOCANADA COMPLETES REPURCHASE OF IA FINANCIAL GROUP INVESTMENT AND EXITS DIGITAL BUSINESS

AutoCanada Inc. has repurchased iA Financial Group's (1) 10-per-cent common equity interest in 15154871 Canada Inc. for $8.0-million in cash. The transaction concludes the parties' investment arrangement relating to AutoCanada's on-line consumer-to-consumer (C2C) finance and insurance (F&I) business and its Kijiji-based instant cash offer (ICO) business.

Key highlights:

• AutoCanada has repurchased iA Financial Group's 10-per-cent interest in 15154871 Canada for $8.0-million.
• The company is discontinuing its on-line C2C F&I and Kijiji-based instant cash offer businesses to focus resources on its core dealership and collision operations.
• In the trailing 12 months ended June 30, 2026, the on-line C2C F&I business and ICO businesses generated approximately $3.6-million in revenue and incurred a net loss of $6.0-million.
• iA Financial Group continues to be a strong partner, providing third party insurance and warranty products across AutoCanada's dealership network.

AutoCanada is discontinuing these businesses to focus resources on its core dealership and collision operations. In the trailing 12 months ended June 30, 2026, the on-line C2C F&I business and ICO businesses generated approximately $3.6-million in revenue and incurred a net loss of $6.0-million.

"iA Financial Group is a great partner to AutoCanada and an important provider of third party insurance and warranty products across our dealership network," said Samuel Cochrane, chief executive officer of AutoCanada. "As a company, our priority is clear: to be the best operator of automotive dealerships and collision centres in Canada. This requires disciplined allocation of capital and management attention. We will act decisively when an initiative is loss-making, does not meet our return requirements or distracts from our core operations."

About AutoCanada Inc.

AutoCanada's dealership operations segment operates 61 franchised dealerships in Canada, representing 23 automotive brands across eight provinces, as well as three independent used vehicle dealerships. In 2025, AutoCanada's Canadian dealerships sold approximately 71,000 new and used retail vehicles. AutoCanada's U.S. dealership portfolio is classified as discontinued operations as the company progresses its sale.

AutoCanada's collision operations segment, operating under the ACX brand, operates 38 collision centres supported by 26 original equipment manufacturer certifications covering 37 vehicle brands. The collision operations segment supports customer retention across multiple touchpoints in the automotive ownership life cycle.

(1) iA Financial Group is a business name and trademark of iA Financial Corp. Inc. and Industrial Alliance Insurance and Financial Services Inc.