ALUULA Composites to Recruit CFO and Extends Maturity Date of Existing $1m Loan

Rhea-AI Summary

ALUULA Composites (OTCQB: AUUAF) said CFO Dale Graham will depart effective March 31, 2026 and the company is actively recruiting a successor while Graham remains in role and will be available as a consultant.

The company also amended a related-party $1,000,000 short-term loan from 0876991 B.C. Ltd., which carries 12% per annum interest, returning the principal to $1,000,000 and extending the maturity to January 1, 2027. Prior amendments included a $200,000 repayment on January 1, 2025 and earlier maturity extensions. The company says it relies on exemptions in MI 61-101 sections 5.5(a) and 5.7(1)(a) for this related-party amendment.

Positive

• CFO will remain through March 31, 2026 and provide consulting support
• Loan maturity extended to Jan 1, 2027, reducing immediate repayment pressure

Negative

• Related-party loan reinstated to $1,000,000, signaling continued leverage
• Loan carries a high 12% annual interest rate
• Company relied on MI 61-101 exemptions, reducing formal minority approval/valuation processes

News Market Reaction

-1.54%

1 alert

-1.54% News Effect

On the day this news was published, AUUAF declined 1.54%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Victoria, British Columbia--(Newsfile Corp. - January 12, 2026) - ALUULA Composites Inc. (TSXV: AUUA) (OTCQB: AUUAF) ("ALUULA" or the "Company") announces that it is working closely with Dale Graham, the Company's current Chief Financial Officer, to transition to a new CFO who will support the business through its next phase of growth and development. The Company will be actively recruiting for a new CFO while Dale continues in the role. Officially Dale will depart on March 31st, and he will work with the Company to ensure a smooth transition and remain available to the Company after this date on a consulting basis.

The Company thanks Dale for his contributions and leadership during his tenure with ALUULA as he has been a key member of the team, starting in early 2024, helping mature and stabilize the operations to ensure a strong foundation for future growth.

The Company is now initiating the search for its next Chief Financial Officer who will be a key member of the executive team, instrumental in advancing the Company's financial strategy and supporting future growth plans currently underway. Interested and qualified candidates can review the job description found on the careers page of ALUULA's website.

Related Party Loan Amendment

The Company also announces that it has agreed with the lender to amend the terms of an existing short term loan agreement to extend the maturity date to January 1st, 2027. The Company entered into a $1,000,000 short-term loan agreement (the "Loan Agreement") with 0876991 B.C. Ltd. ("0876991"), a related party to the Company, on December 29, 2023. The loan bears interest at a rate of 12% per annum. In June 2024, the parties agreed to amend the Loan Agreement and extend the repayment date from July 1, 2024 to January 1, 2025. In October 2024, the parties entered into a second amendment to the Loan Agreement pursuant to which: (i) $200,000 of the loan was repaid on January 1, 2025, and the due date for repayment of the balance of the loan was extended to January 1, 2026; and (ii) the Company was affirmed as the debtor due to the corporate amalgamation with its wholly-owned subsidiary on August 1, 2024 (please see news release dated September 4, 2024). In January of this year, the parties agreed to amend the terms of the Loan Agreement to return to the original $1,000,000 total loan and extend the maturity to January 1st, 2027. All other terms of the Loan Agreement remain unchanged.

As the lender is a related party to the Company, the amendment to the loan agreement constitutes a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, and the Company is relying on the exemptions contained in section 5.5(a) and 5.7(1)(a) respectively from the formal valuation and minority shareholder approval requirements in that instrument.

About ALUULA Composites

ALUULA is an ultra-light, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear as well as commercial and industrial equipment. Proudly owned and manufactured on the Canadian west coast, ALUULA's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA's materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.

aluula.com | (TSXV: AUUA) (OTCQB: AUUAF)

On behalf of the Board of Directors,
Sage Berryman
Chief Executive Officer
1-888-724-2470

For ALUULA investor inquiries, please contact: 1-888-724-2470, ext. 4

IR@aluula.com

For ALUULA media relations, please contact:

media@aluula.com

ALUULA's Brand Partners

The term "brand partners" does not refer to formal partnerships with our customers. The term refers to marketing relationships with our customers who use ALUULA's technology as a brand ingredient in their products.

TSX Venture Exchange

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

Forward-Looking Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements, including, but not limited to: the departure of the current CFO and the recruitment of a new CFO. These statements are based on assumptions subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, including the recruitment process and availability and hiring of suitable candidates, the actual results, expectations, achievements, or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280105

FAQ

When will ALUULA Composites' CFO Dale Graham officially leave the company (AUUAF)?

Dale Graham will depart effective March 31, 2026 and will remain available as a consultant.

What are the terms of the amended related-party loan for ALUULA (AUUAF)?

The loan was returned to a $1,000,000 principal, bears 12% per annum interest, and the maturity was extended to January 1, 2027.

Was any portion of the ALUULA related-party loan repaid previously (AUUAF)?

Yes, $200,000 of the loan was repaid on January 1, 2025 before the parties reinstated the $1,000,000 principal.

How is ALUULA handling the related-party transaction disclosure requirements (AUUAF)?

The company is treating the amendment as a related-party transaction and is relying on exemptions in MI 61-101 sections 5.5(a) and 5.7(1)(a).

Will ALUULA recruit a new CFO and where can candidates apply (AUUAF)?

Yes, the company is actively recruiting a new CFO and interested candidates can review the job description on ALUULA's careers webpage.

What immediate financial relief does the loan amendment provide for ALUULA shareholders (AUUAF)?

The primary short-term effect is an extension of the repayment date to January 1, 2027, which defers near-term cash outflow obligations.