Sabio Announces Private Placement Offering of Debentures and Debt Settlement

TORONTO, Aug. 12, 2025 /CNW/ -- Sabio Holdings (TSXV: SBIO) (OTCQB: SABOF) (the "Company" or "Sabio"), a Los Angeles-based ad-tech company specializing in helping top global brands reach, engage, and validate (R.E.V.) streaming TV audiences, is pleased to announce its intention to complete a non-brokered private placement offering (the "Offering") of unsecured debentures (collectively, the "Debentures") for aggregate gross proceeds of up to CAD$2,000,000.

The Debentures will bear simple interest at a rate of 15% per annum (calculated as 7.5% over a six-month period), payable in arrears on maturity. The Debentures will mature six months from the closing date of the Offering (the "Maturity Date"), with an option for the Company to extend the Maturity Date by an additional six months (the "Extension Right").

In connection with the Offering, subscribers will receive, for no additional consideration, common shares (each, a "Bonus Share") in the capital of the Company equal to 5% of the principal amount of the Debentures divided by the greater of: (a) $0.53; and (b) the lowest permitted price under the policies of the TSX Venture Exchange ("TSXV"). Should the Company exercise the Extension Right, holders of Debentures will be entitled to receive additional Bonus Shares equal to 10% of the principal amount of the Debentures divided by the greater of: (a) the volume-weighted average trading price of the Company's shares on the TSXV for the 10 consecutive trading days ending on the original Maturity Date; and (b) the lowest permitted price under the policies of the TSXV.

The Debentures will rank pari passu with all other existing unsecured indebtedness of the Company, however will be subordinate to one of the Company's senior lender by way of subordination agreement.

The net proceeds of the Offering will be used for general working capital purposes and to retire an existing convertible debt instrument.

The Offering remains subject to the execution of definitive documentation, including subscription agreements and subordination agreements, as well as receipt of all necessary regulatory approvals, including that of the TSXV. The Company may pay finders' fees under the Offering to qualified arm's length parties.

Debt Settlement

Further to the Company's news release dated July 31, 2025, the Company announces it has issued a total of 162,477 common shares (each, a "Share") of the Company at a deemed price of CAD$0.517 per Share to settle an aggregate of CAD$84,000 of interest ("Interest") that was due on July 31, 2025 (the "Debt Settlement"). The Interest related to certain secured convertible notes (collectively, the "Convertible Notes") issued in connection with a previously announced non-brokered private placement that closed on August 16, 2023.

The issuance of the Shares fully settles the Interest due and extinguishes the debt with the creditors under the Convertible Notes.

All securities issued pursuant to the Offering and Debt Settlement will be subject to a statutory hold period in accordance with applicable securities laws.

None of the securities issued in connection with either the Offering or the Debt Settlement will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

About Sabio

Sabio Holdings (TSXV: SBIO, OTCQB: SABOF) is a technology and services leader in the fast-growing ad-supported streaming space. Its cloud-based, end-to-end technology stack works with top blue- chip, global brands and the agencies that represent them to reach, engage, and validate (R.E.V.) streaming audiences.

Sabio consists of a proprietary ad-serving technology platform that partners with the top ad- supported streaming platforms and apps in the world and App Science™, a non-cookie-based software as a service (SAAS) analytics and insights platform with AI natural language capabilities, and Creator Television^® (Creator TV), the first creator-led streaming network and content studio dedicated to bringing the authenticity and energy of social media storytelling to TV.

For more information, visit: sabio.inc

Forward-Looking Statements

This press release may contain certain forward-looking information and statements ("forward- looking information") within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as "believes," "anticipates," "plans," "intends," "will," "should," "expects," "continue," "estimate," "forecasts," or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information, including but not limited to statements related to the Offering, the anticipated use of proceeds therefrom, and the Company's ability to closing the Offering. Readers are cautioned to not place undue reliance on forward- looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the other risk factors disclosed in the Company's annual information form and management's discussion and analysis (MD&A), which are publicly available on SEDAR+ at www.sedarplus.ca. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward- looking information, whether as a result of new information, future events, or otherwise.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: Sajid Premji, Chief Financial Officer, [email protected], Phone: [phone]; Sam Wang, Investor Relations, [email protected]

SOURCE Sabio Inc.