Ms. Tracy Zheng reports

POWERBANK STRENGTHENS BALANCE SHEET AND SOLAR PORTFOLIO WITH 14 per cent REDUCTION IN PROJECT DEBT WITH COMPLETION OF CA$25.4M REFINANCING

Powerbank Corp. has completed a $25.4-million project-level refinancing that reduces outstanding project loan principal by approximately $4.2-million, or 14 per cent. The transaction is expected to release approximately $5.0-million in net cash to Powerbank, reduce scheduled debt payments and simplify financing administration across 53 operating solar projects.

• Refinancing across 53 operating solar projects expected to release approximately $5.0-million in net cash to Powerbank;
• Consolidates 50 credit agreements into one facility with a major Canadian bank, with lower scheduled debt payments, banking fees and administrative costs expected;
• Powerbank to bring operations and maintenance of 49 solar projects in-house, supporting lower operating costs and greater operational control;
• This news release constitutes a "designated news release" for the purposes of the company's prospectus supplement dated June 5, 2025, to its short form base shelf prospectus dated May 7, 2025.

The refinancing covers projects held across 14 project companies and consolidates 50 credit agreements across three lenders into a single agreement with a major Canadian bank. The new facility replaces approximately $29.6-million in outstanding principal and borrowings remain at the project-owning subsidiary level.

The company expects the consolidated financing structure to lower scheduled quarterly debt payments, banking fees and administrative costs, supporting cash flow from its operating solar portfolio.

Expected cash release supports financial flexibility

The transaction is financed through the new facility and an approximately $1.5-million closing contribution from Powerbank. Approximately $5.9-million in existing reserve and lockbox funds are expected to be released following closing. Together with approximately $543,000 received from unwinding interest rate swaps associated with 45 existing loans, these funds are expected to provide approximately $5.0-million in net cash after Powerbank's closing contribution, reserve account funding and closing costs.

Bringing operations and maintenance in-house

Powerbank will assume operations and maintenance (O&M) responsibilities for 49 of the projects, which the company expects will reduce project-level operating costs and provide greater control over maintenance planning and operating performance. Under an agreement with the existing third party O&M provider, Powerbank will provide a full and final release of that provider's obligations.

The refinancing reflects Powerbank's continued focus on strengthening its balance sheet and IPP portfolio of operating assets, which generate long-term contracted revenue, while supporting the company's growth across its development pipeline in Canada and the United States.

About Powerbank Corp.

Powerbank is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the United States. The company develops solar and battery energy storage system (BESS) projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar and virtual net metering projects. The company has a potential development pipeline of almost one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built.

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