EMERGE Commerce (ECOM) Investor Update summary

Portfolio and Operational Focus

• Streamlined to two main verticals: grocery (truLOCAL) and golf (UnderPar, Just Golf Stuff, Tee 2 Green), with a national presence in Canada and growing U.S. exposure.

• Achieved three consecutive quarters of organic revenue growth, reversing prior declines post-pandemic.

• Portfolio now includes four brands, with truLOCAL as the largest by revenue and Tee 2 Green as a recent profitable acquisition.

• Centralized management and synergy-driven strategy have replaced the previous decentralized approach.

• Significant cost savings realized through operational streamlining, payment processing, and email service provider deals.

Financial Performance and Guidance

• Pro forma revenue stands at approximately CAD 25 million, with adjusted EBITDA expected to be positive moving forward.

• Tee 2 Green acquisition adds $1 million in EBITDA and is expected to make the business cash flow positive in 2025.

• Debt reduced by 77% to $5.85 million, with a refinanced facility extending to April 2027.

• Year-end cash position was about $3 million, supporting recent acquisitions without new capital raises.

• Market cap is $6.4 million, with an enterprise value of $11.7 million and 142+ million shares outstanding.

Acquisition Details and Synergies

• Tee 2 Green acquired for $2.2 million, funded with $1.1 million cash, $900,000 deferred over 5 years, and $200,000 in shares at $0.065/share, with a 180-day escrow.

• Acquisition brings $2.4 million in inventory, paid down over eight years, and is expected to deliver significant cash flow and margin benefits.

• T2G generated $6.4 million revenue, $1 million Adjusted EBITDA, and $700,000 net income in 2024 (unaudited).

• Management had a pre-existing operational relationship with Tee 2 Green, de-risking the acquisition and enabling instant synergies.

• No finder's fees were paid, and all conditions precedent, including TSXV approval, were satisfied.