Mr. Tom Connors reports

ACT ENERGY TECHNOLOGIES COMPLETES ACQUISITION OF STRYKER DIRECTIONAL, EXPANDING PRESENCE IN THE SOUTHERN UNITED STATES

On Jan. 5, 2026 (the closing date), ACT Energy Technologies Ltd. acquired all the assets of Stryker Energy Directional Services LLC for total consideration of $24.2-million (U.S.) (approximately $34-million (Canadian)). The purchase price consisted of $12.5-million (U.S.) in cash, a $6.7-million (U.S.) promissory note and $5.0-million (U.S.) in ACT common shares.

Stryker, founded in 2010 and based in Conroe, Tex., is a well-established directional drilling services provider with a highly experienced management team and a strong operating history across the Southern United States. In 2025, Stryker averaged approximately 17 active jobs per operating day, including work utilizing RSS technology. Stryker's existing management team will lead the business, ensuring continued strong customer service and long-term alignment with ACT shareholders.

"Stryker has built a strong brand and a proven reputation for delivering high performance directional drilling services to customers across the Southern U.S.," said Tom Connors, president and chief executive officer of ACT. "We are excited to welcome Stryker's management team and employees to ACT. Their expertise and operational track record will strengthen our U.S. platform and enhance our ability to serve customers with high-value drilling technologies. The acquisition of Stryker, which relies on rented third party mud motors for approximately one-half of its active jobs, presents a meaningful opportunity for ACT to supply motors from our existing inventory, immediately reducing rental expenses and expanding margins. Their RSS fleet and deep experience in deploying and servicing MWD tools further complement our technology-focused strategy. We expect the cash flow generated by Stryker to pay back in less than 2.5 years, with additional upside as synergies are realized."

Transaction highlights

• Expands ACT's scale and presence in key U.S. basins: Stryker's strong position in the Southern U.S. enhances ACT's existing operations and increases U.S. job count in the Southern U.S.;
• Strengthens ACT's technology portfolio: Stryker's fleet of 10 RSS tools adds to ACT's U.S. RSS fleet of 30 tools. RSS technology represents the highest-value segment of the directional drilling market, generating superior revenue and margins;
• Significant synergy potential: ACT expects more than $5.0-million in annual synergies, primarily from replacing Stryker's rented mud motors with ACT-owned assets;
• Balanced and strategic funding structure: the combination of cash, debt and equity supports management retention and preserves ACT's financial flexibility;
• Accretive financial impact: Including expected synergies and minimal follow-on capital requirements, ACT anticipates a payback period in less than 2.5 years. The transaction is expected to be accretive to net income, adjusted EBITDAS (earnings before interest, taxes, depreciation and amortization, and share-based compensation), and free cash flow (see non-GAAP (generally accepted accounting principles) and supplementary financial measures).

Key terms of the transaction

Under the definitive agreements between ACT and Stryker, ACT paid the following consideration:

• $12.5-million (U.S.) in cash;
• $5.0-million (U.S.) in equity, via the issuance of 1,299,394 common shares of ACT;
• A $6.7-million (U.S.) promissory note issued by a wholly owned subsidiary of ACT to Stryker, structured as a three-year, 6-per-cent subordinated note, with $2.5-million (U.S.) repayable on the 12- and 24-month anniversaries of the closing date, and the balance of $1.7-million (U.S.) repayable on the 36-month anniversary of the closing date.

The acquisition shares were issued at a deemed price of $5.29 per acquisition share for a value of approximately $5.0-million (U.S.). The acquisition shares are subject to a four-month statutory hold period under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada. Additionally, the acquisition shares are subject to contractual resale restrictions, with 30 per cent of the acquisition shares released on the dates that are 12 and 24 months following the closing date, and 40 per cent on the date that 36 months following the closing date.

In connection with the transaction, the company also issued 727,660 common shares of the company to Stryker at a price of $5.29 per share, for aggregate gross proceeds of $3.85-million ($2.8-million (U.S.)) as a concurrent private placement. The Stryker shares are subject to a four-month statutory hold period under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada. Additionally, the Stryker shares are subject to contractual resale restrictions, with 25 per cent of the Stryker shares released on each of the dates that are 12, 24, 36 and 48 months following the closing date (see non-GAAP measures and supplementary financial information below, for foreign exchange conversion assumptions).

Advisers

Peters & Co. Ltd. acted as financial adviser to ACT. DS Lawyers Canada LLP served as Canadian legal counsel, and Porter Hedges LLP acted as U.S. legal counsel to ACT and its subsidiaries.

About ACT Energy Technologies Ltd.

ACT Energy Technologies, headquartered in Calgary, Alta., operates in Canada and the United States under the brands Altitude Energy Partners, Discovery Downhole Services and Rime Downhole Technologies. ACT's common shares trade on the Toronto Stock Exchange under the symbol ACX. ACT provides high performance directional drilling services and downhole technologies to North American energy companies, delivering tailored solutions that improve drilling efficiency and reduce project costs.

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