MONTREAL , Dec. 1, 2025 /CNW/ - Mercanto Holdings Inc. (TSXV: MUSH) ("Mercanto" or the "Company"), today announced its financial results for the fiscal year ended July 31, 2025.

Fiscal 2025 was a year of transition for the Company, driven primarily by a province-wide restructuring of the cannabis product assortment and distribution planogram in Quebec. While these changes reduced the number of Mercanto products available on shelves, the Company believes the new structure provides a more stable and predictable operating environment going forward.

Fiscal 2025 Financial Results

(All financial information is in Canadian dollars and extracted from the Company's audited consolidated financial statements and MD&A for the year ended July 31, 2025.)

• Revenue: $3,561,289 (2024: $4,636,034)
• Net Revenue: $2,995,995 (2024: $3,893,410)
• Gross Margin: $621,689 (2024: $1,225,022)
• Net Income (Loss): $(412,313) (2024: $40,603)

The decline in revenue and margin was largely attributable to the completion of the rationalization process in Quebec, the Company's primary market.

Impact of Quebec Market Restructuring

During fiscal 2025, the Quebec cannabis retailer completed a comprehensive review and reduction of its entire product portfolio. As part of this process:

• Certain Mercanto SKUs were delisted;
• The "nursery program"—under which emerging products were tested in a portion of stores before province-wide rollout—was discontinued.

Although these measures had a negative short-term impact on the Company's results, Mercanto believes they create long-term structural benefits for established Quebec suppliers, including:

• More consistent listing cycles;
• Clearer product-call processes;
• Improved predictability for production and inventory planning;
• Province-wide launches for new listings, rather than partial-store trials.

These structural changes are expected to improve visibility and operational stability beginning in FY2026.

Positioning for calendar 2026

Following the conclusion of the rationalization process, Mercanto received approval for six new Quebec product's now launched including:

• One vape battery
• Three vape cartridges
• Two SKUs transitioned from the discontinued nursery program to full in-store availability

Mercanto remains amongst the more diversified suppliers in the province, participating across several categories. The Company expects these new listings and the more stable provincial listing framework to support revenue recovery in FY2026.

Liquidity

As at July 31, 2025, the Company reported:

• Cash: $394,974 (2024: $202,370)
• Working Capital: $225,910 (2024: $545,789)

Mercanto continues to benefit from low credit risk exposure, an asset-light model, and strong relationships with suppliers.

Stock Option Grants

The Company also announces that it has granted an aggregate of 1,300,000 stock options pursuant to its stock option plan. Each of Eric Ronsse, Steve Saviuk, Michel Dahan, Franck Aton, and Scott Jardin has been granted 250,000 options, and Jerry Chen has been granted 50,000 options. All options are exercisable at the price of market close on November 27, 2025 ($0.12 per share) which shall vest 50% on November 28, 2025, and 50% one year thereafter, and expire ten years from the date of grant.

About Mercanto Holdings Inc.

Mercanto Holdings Inc. (formerly The Good Shroom Co Inc.) is a Quebec-based cannabis processor operating under a Health Canada Standard Processing Licence. Through its wholly owned subsidiary, Teonan Biomedical Inc., the Company sells cannabis products for the Canadian regulated market as well as functional mushroom beverages. The Company's products are distributed across multiple provinces.

Forward-Looking Statements

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements.

Forward-looking statements in this press release may include, but are not limited to:

• the expected impact of provincial market restructuring;
• anticipated timing and outcome of product listings;
• expectations regarding revenue trends, operational stability, or future performance;
• the Company's ability to maintain listings, successfully launch new products, or benefit from regulatory or structural changes.

Forward-looking statements are based on management's current expectations, estimates, projections, and assumptions, including but not limited to assumptions regarding general economic conditions, regulatory environments, competitive conditions, provincial purchasing behaviour, and the Company's ability to execute its operational strategies. While management believes these assumptions are reasonable as of the date hereof, they are inherently subject to significant business, economic, regulatory, and competitive uncertainties.

Readers are cautioned that forward-looking statements involve risks and uncertainties, including, without limitation: changes in provincial listing practices; regulatory or policy changes; shifts in consumer behaviour; supply-chain disruptions; competitive pressures; and other risks described in the Company's filings on SEDAR+. Actual results may differ materially from those expressed or implied in the forward-looking statements.

Readers should not place undue reliance on forward-looking statements. Except as required by applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking statements to reflect new information, future events, or circumstances.

SOURCE Mercanto Holdings Inc.