Mr. Simon Hitzig reports

ACCORD ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND AMENDMENT TO ITS BANKING FACILITY AND BOARD CHANGE

Accord Financial Corp. today released its financial results for the quarter ended March 31, 2026. The financial figures presented in this news release are reported in Canadian dollars and have been prepared in accordance with international financial reporting standards (IFRS).

Throughout 2025 and into 2026, Accord has focused on repaying its outstanding debt and simplifying the business. During the first quarter, the company executed several strategic initiatives -- notably, exiting the U.S. market through a series of transactions that led to a reduction of bank debt of $76.6-million over the period.

The company faced the maturity of its senior secured credit facility and unsecured demand and term notes in July, 2025, and the impending maturity of its listed and unlisted debentures in January, 2026. Beginning on Aug. 15, 2025 the company announced a series of short-term amendments to its bank facility and notes, and today announced further amendments extending the maturity of the bank facility to June 12, 2026, and the maturity of the notes to June 19, 2026. In addition to the maturity date extension, the bank facility amendment reduces the total commitment to $65-million. The company also announced that on Jan. 27, 2026, debentureholders approved amendments, including an extension of the maturity date to July 31, 2026.

The company's president and chief executive officer, Simon Hitzig, commented, "The successful first quarter transactions were aimed at reducing bank debt, as well as simplifying the business." On Feb. 10, the company announced the sale of its 60-per-cent interest in BondIt Media Capital and on March 13, the company announced the sale of certain U.S. portfolio assets. These transactions, together with a series of additional loan sales and repayments since Dec. 31, 2025, reduced the amount outstanding under the bank facility from $148.2-million at the start of the year to $71.6-million at March 31, 2026.

Mr. Hitzig further noted: "Accord is now entirely focused on small business lending in Canada -- one country, one target market, one team. While 'Accord 2.0' emerges future focused from its recent repositioning, our nearly 50 years of Canadian market presence opens doors with well-earned name recognition and respect."

Exiting the U.S. market caused the company's finance receivables and loans to decline from $346-million at the start of the year to $154-million at March 31, 2026. While Accord refocused on its home market, the corresponding reduced scale directly affects revenue. The company has taken steps to reduce overhead as funds employed declined; however, the pace of cost-cutting lags the revenue decline. The first quarter financial results reflect this challenge, compounded by the burden of professional and other fees related to managing and repaying the bank facility.

Mr. Hitzig further stated: "Streamlining the business and simplifying the portfolio is intended to set the stage to restructure and/or refinance all the company's debt -- this is the top priority for Accord and we continue to work with our financial advisers in this regard. While progress has been made and our lenders have granted extensions to provide additional time, there are no assurances that further initiatives will be successful or sufficient to fully repay our outstanding debt when due or that our lenders will continue to grant extensions such that the company can continue to operate as a going concern."

Board change

The company also announced that David Beutel resigned from the board of directors on May 14, 2026. "We thank David for his contributions since joining the board in 2014 and wish him well in his next endeavours," said Mr. Hitzig.

About Accord Financial Corp.

Accord Financial is one of Canada's most dynamic commercial finance companies providing fast, versatile financing solutions, including asset-based lending, factoring, inventory finance, equipment finance and working capital loans, and equipment finance. By leveraging its unique combination of deep experience and independent thinking, Accord Financial crafts winning financial solutions for small and medium-sized businesses, simply delivered, so its clients can thrive.

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