Mr. Josh Scherba reports

WILDBRAIN ACQUIRES PERSONALITY AI, A TRUSTED PARTNER FOR BRINGING BELOVED CHARACTERS TO LIFE

Wildbrain Ltd. has acquired Personality AI, a trusted, kid-safe partner for bringing beloved character experiences to life through proprietary generative AI (artificial intelligence). Personality AI adds a differentiated capability to Wildbrain's platform of global licensing, franchise management, content production and network scale, introducing a new category of safe-by-design, scalable character experiences that can be built once and deployed anywhere. Personality AI's character experiences enable deeper consumer engagement with entertainment IP beyond traditional licensing and content.

Personality AI was selected by Amazon in 2025 to develop a generative AI platform for Amazon Kids+, its subscription service for children. Projects include Hey Peppa Pig, an interactive voice experience developed with Hasbro that lets kids talk with Peppa Pig through games and activities inspired by the brand's official series. Launched in December, 2025, Hey Peppa Pig is currently available on Fire Kids tablets through Amazon Kids+, demonstrating Personality AI's ability to deliver trusted, child-safe generative AI experiences for globally recognized entertainment brands and platforms with children in mind.

Management believes Personality AI's business model is well positioned to generate recurring revenue streams with attractive margin characteristics and is expected to be EBITDA (earnings before interest, taxes, depreciation and amortization) accretive in fiscal 2027. The agreement is designed to align the interests of Personality AI's management with Wildbrain shareholders and incentivize continued growth and long-term value creation.

Under the agreement, Wildbrain has acquired 100 per cent of the outstanding shares of Personality AI effective immediately for closing consideration of approximately $11-million (U.S.) in cash (subject to customary working capital adjustments and holdbacks) and one million Wildbrain shares. The vendors will also receive $2-million (U.S.) of additional consideration on the first anniversary of closing, payable in up to one million Wildbrain shares with any balance in cash.

The agreement also provides for additional performance-based cash consideration up to $56-million (U.S.) in aggregate tied to the Personality AI business achieving certain revenue targets in calendar 2027, 2028 and 2029. All of the Wildbrain shares issued to the vendors will be subject to a lock-up period of six months from the date of issuance.

Built on safety-first architecture and trusted children's privacy standards

Personality AI develops kid-safe, rigorously tested and fully approved single-instance custom AIs for IP holders, deployable across any product, platform, location or experience. Part of the FTC-approved Privo Coppa Safe Harbor Program -- one of the industry's most respected independent oversight programs for compliance with the Federal Children's Online Privacy Protection Act -- Personality AI also prides itself on delivering a safe experience, including time limits, age-appropriate knowledge bases and enriching experiences, encouraging interaction but not co-dependence.

Personality AI's service is built around safety-first architecture, incorporating moderated interactions, child development experts, layered quality control, privacy-by-design principles, and a commitment to not store or monetize children's personal data. Personality AI does not store user voice recordings or any other user personally identifiable information (PII) on devices or remotely.

Acquisition creates scalable opportunities to monetize owned and partner IP

Personality AI joins Wildbrain with a growing pipeline of prospective licensing engagements. Its interactive character AIs are built to evolve-continually enhanced, expanded and renewed-enabling safe, on-brand deployments of beloved characters across consumer products, digital platforms, physical locations and emerging use cases. This creates a new engagement engine within Wildbrain's franchise flywheel, extending fan interaction beyond traditional content windows and creating new opportunities for commercial activation.

Paired with Wildbrain's established strength in content-driven storytelling, franchise management and global licensing through Wildbrain CPLG, Personality AI extends the company's ability to monetize both owned and partner IP through interactive character experiences, addressing a large and growing market of IP owners and platforms across kids' and family entertainment.

Under the agreement, John Goscha, founder and chief executive officer of Personality AI, joins Wildbrain's executive leadership team with the title executive vice-president, Personality AI, reporting to Josh Scherba, president and CEO of Wildbrain. The acquisition also brings Personality AI's team of experts in AI app and product creation to Wildbrain under Goscha.

"I'd like to welcome John and his team to Wildbrain, who bring proven new technology and commercial capabilities to our platform. Our strategy at Wildbrain is centred on building long-term value by activating IP on a global scale. As fan engagement continues to evolve, we believe interactive AI experiences represent an important new opportunity for brands to connect with audiences in meaningful ways.

"Personality AI enables more continuous interaction between fans and brands, strengthening our ability to deliver end-to-end franchise solutions to partners. This highly complementary acquisition positions us and Personality AI as a more integrated partner to IP owners globally through our in-house licensing agency, Wildbrain CPLG, while helping support the continued growth of both our owned and partner brands."

Josh Scherba, president and CEO, Wildbrain

"I'm thrilled to be joining forces with Wildbrain, a clear leader in family entertainment. At Personality AI, we share Wildbrain's commitment to children's well-being, which is why we employ rigorous safety standards to ensure appropriate, authentic, and trustworthy content and experiences for kids, parents and IP owners alike.

"I look forward to working with Josh and the Wildbrain management team to bring our capabilities to more brands, platforms and audiences around the world while maintaining the high standards of safety, trust and innovation that have defined Personality AI."

John Goscha, executive vice-president, Personality AI

John Goscha, Wildbrain's executive vice-president, Personality AI, is a lifelong inventor and entrepreneur who founded Personality AI in 2025 to help IP owners create character-driven AI experiences that are safe by design, true to the underlying brand and deployable across products, platforms and locations. Previously, Mr. Goscha founded IdeaPaint, growing it into an internationally recognized design brand, Lucidity, where he pioneered new lighting technologies, and Native Voice, a conversational AI platform connecting consumers with voice experiences across devices. Mr. Goscha has been recognized by Bloomberg Businessweek Inc. Magazine, Forbes and the Boston Business Journal for his entrepreneurial achievements.

About Wildbrain Ltd.

At Wildbrain, the company builds and grows beloved family brands through exceptional entertainment experiences. Home to franchises such as Strawberry Shortcake, Teletubbies, Yo Gabba Gabba!, Inspector Gadget and Degrassi, the company is a global leader in franchise management-bringing stories to life through content production, audience reach and consumer products. The company's award-winning studio has partnered with top global platforms such as Apple TV, Netflix and the BBC, producing acclaimed series such as The Snoopy Show, Strawberry Shortcake: Berry in the Big City, Teletubbies (2015), Yo Gabba GabbaLand! and Finding Her Edge. The Wildbrain Network, offering more than 1,000 channels across YouTube, FAST and AVOD, delivers premium-quality content to today's kids and families wherever they're watching-connecting advertisers to audiences at scale through brand-safe media solutions. Wildbrain CPLG, the company's global licensing and consumer products arm, represents its own and partner brands across major territories worldwide. Headquartered in Toronto, Wildbrain trades on the Toronto Stock Exchange (TSX: WILD).

About Personality AI

Personality AI builds true-to-life, conversational character AIs for IP owners and their licence partners. Personality's team of AI engineers, child development experts and award-winning entertainment producers combine deep technical expertise with decades of kids-media experience to deliver custom model builds grounded in each character's DNA and safe-by-design. Personality partners with IP holders and voice talent to create a single, fully licensed AI that can be integrated across toys, apps, kiosks and other consumer products. One build, endless opportunities. Part of the FTC-approved Privo Coppa Safe Harbor Program -- one of the industry's most respected independent oversight programs for compliance with the Federal Children's Online Privacy Protection Act -- Personality AI prides itself on delivering a safe interactive AI experience for kids.

We seek Safe Harbor.