Mr. Eric Ronsse reports

MERCANTO HOLDINGS REPORTS STRONG EARLY PERFORMANCE OF NEW QUEBEC LISTINGS AND STEADY CORE PORTFOLIO

Mercanto Holdings Inc. has provided an update on its three newest Societe quebecoise du cannabis (SQDC) listings and its established portfolio.

Quebec orders:

• SQDC purchase orders averaged approximately $110,000 per week over the four weeks ended Sept. 30, 2026, all from recurring reorders. A year earlier, in the first quarter of fiscal 2026, the company's total revenue across all channels averaged approximately $69,000 per week.
• Mercanto has 16 active SQDC listings, most on minimum one-year terms.

New launches -- all three at or above plan

Initial SQDC orders stock store shelves and the on-line channel at launch and are substantially larger than weekly reorders; the four-week average above includes no initial orders. Reorders then follow weekly sell-through and are the better measure of continuing demand:

• Velada Titanimal ice-water hash (two grams (g)) -- initial order of approximately 7,800 units. The first production lot sold through, capacity has been added and reorders average roughly 550 units per week, with the latest week the strongest since launch;
• Velada CBD (cannabidiol) 10-milligram (mg) capsules -- launched in August, 2026. Reorders have risen three weeks in a row and are ahead of plan. The 10 mg completes Velada's CBD capsule range in Quebec: 10, 25, 50 and 100 mg on-line, with 10 mg and 50 mg also in stores;
• Cereal Milk rosin-infused prerolls (three times 0.5 g) -- initial order of approximately 5,600 units. Launch demand outpaced supply; supply was restored within two weeks and stores are now fully stocked. A second rosin-infused preroll, Guavacot Kush, reorders weekly.

The full brand portfolio is on the Mercanto Holdings website, under brands.

Core portfolio:

• Nordique Royale Afghan Gold cartridge -- approximately 1,000 units per week. Consistently among the province's top eight distillate cartridges, usually around sixth, at the highest price point in its category;
• Velada Cherry Blossom cartridge -- approximately 750 units per week, around eighth in the category, with a half-strength, CBD-balanced profile unique on the Quebec shelf;
• Nordique Royale Afghan Gold hash -- approximately 500 units per week, reordered every week for close to three years;
• CCELL 510 battery -- Quebec's best-selling battery at approximately 2,400 units per week.

Outlook:

• Fiscal 2026 results (year ended July 31, 2026) expected before the end of November;
• Fiscal 2027 is expected to be the first year with 12 full months of vape cartridges and batteries, alongside the three new listings;
• With most of its SQDC listings on minimum one-year terms, management believes the company enters fiscal 2027 with its most predictable revenue base to date. Net income was $145,212 for the nine months ended April 30, 2026, with no long-term debt other than lease liabilities.

Financial history, share structure, governance and news release alerts are available on the Mercanto Holdings website, under investors.

Purchase order and unit figures are unaudited, are derived from SQDC purchase orders received by the company and third party sell-through data, and include applicable excise duty. Purchase orders are not a measure of revenue under IFRS (international financial reporting standards), do not have a standardized meaning and may not be comparable with measures presented by other issuers; revenue is recognized when products are delivered. These figures are not a forecast of revenue or results.

About Mercanto Holdings Inc.

Mercanto Holdings is a Quebec-based house of cannabis and wellness brands. Through its wholly owned subsidiary, Teonan Biomedical Inc., a Health Canada standard processing licence holder, the company develops, manufactures and markets Nordique Royale (hash and vape cartridges), Velada (capsules, hash and prerolls) and Le P'tit Snack (edibles), sold through provincially authorized retailers, primarily in Quebec.

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