Exchange Income Corporation Announces Early Redemption of 7 Year 5.25% Debentures Due January 15, 2029

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WINNIPEG, Manitoba — Exchange Income Corporation (“EIC” or the “Corporation”) (TSX: EIF) announced today that it has delivered notice to the holders of the Corporation’s outstanding 7 Year 5.25% Convertible Unsecured Subordinated Debentures due January 15, 2029 (the “Debentures”) that pursuant to Section 4.2 of the trust indenture governing the Debentures dated December 6, 2021 (the “Trust Indenture”), the Corporation will, effective December 2, 2025 (the “Redemption Date”), redeem all issued and outstanding Debentures, plus accrued interest thereon.

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The Corporation is taking the step to redeem these Debentures as the current market price of EIC’s common shares is greater than 125% of the conversion price of the Debentures of $60.00, which permits the Corporation to redeem the Debentures in accordance with the Trust Indenture. In accordance with the Trust Indenture, holders of these Debentures may convert the outstanding Debentures into common shares of EIC at a price of $60.00 per share, which is at a discount to the closing price of EIC’s common shares on October 28, 2025, the date of this press release.

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The Corporation encourages individual holders of Debentures (“Debentureholders”) to review redemption instructions from their financial institution to ensure a request for conversion is submitted in advance of the cutoff time set by the Debentureholder’s financial institution. This can be several days in advance of the Redemption Date and is not controlled by the Corporation.

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There are currently 114,798 Debentures issued and outstanding in the aggregate principal amount of $114,798,000 ($1,000 per Debenture) as at the date hereof. Accordingly, on the Redemption Date, subject to compliance with the Trust Indenture, the holder of each Debenture (unless converted prior to the Redemption Date in accordance with the terms of the Trust Indenture) will receive a total payment of $1,020.1369863, comprised of a principal repayment of $1,000.00 and interest of $20.1369863 for the 140 day period from July 15, 2025 up to, but excluding, the Redemption Date. All interest on the Debentures shall cease from and after the Redemption Date.

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Certificates representing the Debentures must be tendered to the indenture trustee, Computershare Advantage Trust of Canada, 320 Bay Street, 14^th Floor, Toronto, Ontario, M5H 4A6 Attention: Traicy Thomas.

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About Exchange Income Corporation

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Exchange Income Corporation is a diversified acquisition-oriented company, focused in two segments: Aerospace & Aviation and Manufacturing. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth. For more information on the Corporation, please visit www.ExchangeIncomeCorp.ca.

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Additional information relating to the Corporation, including all public filings, is available on SEDAR+ ( www.sedarplus.ca).

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Caution concerning forward-looking statements

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The statements contained in this news release that are forward-looking are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. Many of these forward-looking statements may be identified by looking for words such as “believes”, “expects”, “will”, “may”, “intends”, “projects”, “anticipates”, “plans”, “estimates”, “continues” and similar words or the negative thereof. These uncertainties and risks include, but are not limited to, external risks, operational risks, financial risks and human capital risks. External risks include, but are not limited to, risks associated with economic and geopolitical conditions, competition, government funding for Indigenous health care, access to capital, market trends and innovation, general uninsured loss, climate, acts of terrorism, armed conflict, labour and/or social unrest, pandemic, level and timing of government spending, government-funded programs and environmental, social and governance. Operational risks include, but are not limited to, significant contracts and customers, operational performance and growth, laws, regulations and standards, acquisitions (including receiving any requisite regulatory approvals thereof), concentration and diversification, maintenance costs, access to parts and relationships with key suppliers, casualty losses, environmental liability, dependence on information systems and technology, cybersecurity, international operations, fluctuations in sales prices of aviation related assets, fluctuations in purchase prices of aviation related assets, warranty, performance guarantees, global offset and intellectual property risks. Financial risks include, but are not limited to, availability of future financing, income tax matters, commodity risk, foreign exchange, interest rates, credit facility and the trust indentures, dividends, unpredictability and volatility of securities pricing, dilution and other credit risk. Human capital risks include, but are not limited to, reliance on key personnel, employees and labour relations and conflicts of interest.

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Except as required by Canadian Securities Law, Exchange Income Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Exchange Income Corporation with the securities regulatory authorities, available at www.sedarplus.ca.

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Contacts

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For further information, please contact:

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Mike Pyle
Chief Executive Officer
Exchange Income Corporation
(204) 982-1850
[email protected]

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Pam Plaster
Vice President, Investor Development
Exchange Income Corporation
(204) 953-1314
[email protected]

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