Mercanto Holdings Inc. Reports Q2 2026 Financial Results and Provides Commercial Update on Québec Product Launches

MONTRÉAL, March 25, 2026 /CNW/ - Mercanto Holdings Inc. (TSXV: MUSH) ("Mercanto" or the "Company") today reported its financial results for the second quarter of fiscal 2026. The Company's unaudited consolidated financial statements for the period ended January 31, 2026, and the related management's discussion and analysis ("MD&A"), are available under the Company's profile on SEDAR+.

Q2 2026 Financial Highlights

• Revenue of $2,076,820, compared to $1,003,116 in the prior-year period (+107% YoY);
• Gross profit of $464,845, compared to $196,413 in the prior-year period (+137% YoY);
• EBITDA of $252,233, compared to $(96,038) in the prior-year period (improvement of $348,271 to positive EBITDA);
• Net income of $177,785, compared to a net loss of $(109,215) in the prior-year period (improvement of $287,000);
• The Company is current on its cannabis excise tax obligations, with all amounts due paid in full and on time as of the date of this release;
• The Company has no long-term debt, other than lease liabilities;
• The Company has 51,674,683 common shares outstanding as of the date of this release, reflecting limited dilution since going public in late 2021.

Commercial Update

In addition to its financial results, Mercanto provides the following update on product initiatives supporting its Québec market strategy.

The Company is set to introduce a new CBD 10 mg capsule format (30 capsules per container) in August 2026. The product will be sold in-store alongside Mercanto's existing CBD 50 mg capsules, expanding the Company's presence in the CBD capsule category and broadening its retail offering. Management believes the lower dose format is complementary to the existing ‑higher dose‑ capsules and is intended to address a different consumer segment rather than replace existing products.

Mercanto already offers CBD 50 mg and CBD 100 mg capsules online through the Québec government's cannabis e-commerce platform. As of August 2026, the Company expects the full four SKU‑ CBD capsule assortment to be available online, consisting of:

• CBD 10 mg capsules
• CBD 25 mg capsules
• CBD 50 mg capsules
• CBD 100 mg capsules

While the complete assortment will be available online, sales in the category continue to be primarily driven by retail distribution. The addition of the CBD 10 mg capsules in-store expands Mercanto's retail lineup and is expected to provide incremental contribution to the Company's CBD category revenue.

Mercanto is also preparing to launch an infused pre-roll product in June 2026, adding to the Company's presence in the infused segment, one of the faster g‑rowing derivative categories in Québec.

About Mercanto Holdings Inc.

Mercanto Holdings Inc. is a cannabis company focused on the Québec market, with a strategy centered on developing, launching and commercializing cannabis products in categories where the Company believes it can build a differentiated position and drive profitable growth.

For more information, please refer to the Company's public filings available on SEDAR+.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information in this news release includes, without limitation, statements relating to: the anticipated timing of the launch of the Company's CBD 10 mg capsules and infused pre-roll product; the expected availability of the Company's CBD capsule formats online and in-store; the anticipated contribution of new products to revenue; the Company's expected position in the CBD capsule category in Québec; and the Company's business strategy, growth plans and commercial prospects.

Forward-looking information is based on a number of assumptions, including but not limited to assumptions regarding continued demand for the Company's products, successful product launches, manufacturing and supply chain continuity, the timing and outcome of provincial listing and distribution processes, and general economic and regulatory conditions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control, that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking information. Such factors include, without limitation, risks relating to delays in product launches, changes in provincial purchasing decisions, changes in consumer preferences, pricing pressure, competitive developments, supply disruptions, regulatory developments, and the other risk factors described in the Company's continuous disclosure record.

Readers are cautioned not to place undue reliance on forward-looking information. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, there can be no assurance that such information will prove to be accurate. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

SOURCE Mercanto Holdings Inc.

For further information, please contact: [email protected]