J-Star Holding Co., Ltd. Advances U.S. Drone Manufacturing Initiative; Negotiates Acquisition of Facility in the Greater Houston Area

Production scope and timing depend on securing the facility, installing equipment and developing commercial relationships.

Rhea-AI Summary

J-Star Holding (Nasdaq: YMAT) is negotiating to acquire a Greater Houston manufacturing facility for its planned U.S. drone-frame production initiative. The proposed site would house YMA (TX) INC., an independent U.S. legal entity J-Star is organizing for potential joint ventures with North American drone developers, aerospace manufacturers and industrial partners.

J-Star plans to contribute proprietary composite technology, licensing and engineering expertise, alongside technical and operational support for facility development and production-line installation. The acquisition remains subject to final negotiations and due diligence. Facility preparation, retrofitting and joint-venture onboarding are planned after final settlement. Production scope and timing depend on completing the transaction, preparing the site, installing equipment and developing commercial relationships.

2 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.The planned Texas manufacturing platform would extend J-Star's composite capabilities into U.S. drone-frame production.
• Minor point. Forward-looking: it has not happened yet and may not happen.J-Star plans to contribute technology, licensing and engineering expertise and support facility development and production-line installation.

Negative

• Moderate pointThe proposed Houston facility acquisition remains subject to final negotiations and due diligence.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Production scope and timing depend on transaction completion, site preparation, equipment installation and commercial relationship development.

Argus 15 min delay 60 alerts

+89.33% vs previous close $2.48 last price 3531.0x rel. volume Open Argus

Details

Market move: YMAT +89.33% vs previous close. Houston facility acquisition

+34.7% Peak in 12 min

$1.32 – $2.68 Day Range

$9.95M Mkt Cap at Last Price

On Oct 19, the day this news came out, the latest delayed price for YMAT is 89.33% above the previous close. Argus tracked a peak move of +34.7% during the session. Our momentum scanner has recorded 60 alerts for this stock so far that day. The latest delayed price is $2.48. Relative volume is exceptionally heavy at 3531.0x the average.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Historical Context

1 past event · Latest: Oct 09

1 event

1. Oct 09

   U.S. expansion financing

   24h Move

   +125.6%

   Outlined capital initiatives to fund the planned Houston drone-frame facility and site preparation.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

unmanned aerial vehicle, original equipment manufacturer, resin matrix, export control

4 terms

unmanned aerial vehicle technical

"North American commercial unmanned aerial vehicle ("UAV") developers"

An unmanned aerial vehicle, often called a drone, is a flying device operated without a human pilot onboard, typically controlled remotely or through automated systems. It is used for various purposes such as surveillance, delivery, and data collection. For investors, understanding unmanned aerial vehicles is important because they represent a growing technology with potential applications across many industries, influencing market opportunities and innovation.

original equipment manufacturer technical

"aerospace original equipment manufacturers ("OEMs")"

An original equipment manufacturer (OEM) is a company that designs and builds parts or complete products that other firms sell under their own brand name, like a bakery making cakes that coffee shops rebrand and sell. Investors care because OEMs often win steady, long-term contracts, predictable production volumes and thin but scalable profit margins, so changes in their order book or supply chain can signal future revenue and risk for both the OEM and the brands that rely on it.

resin matrix technical

"custom resin matrix formulations"

A resin matrix is the continuous polymer material in a composite that surrounds and bonds together the reinforcing elements (like fibers or particles), transferring loads between them and protecting them from damage and the environment. The matrix determines properties such as toughness, heat and chemical resistance, and how the composite can be processed, while the reinforcement provides most of the composite’s stiffness and strength.

export control regulatory

"applicable U.S. export control requirements"

Export control are government rules that limit the sale, transfer or disclosure of certain goods, technology or services to foreign countries, organizations, or individuals. They matter to investors because they can block or restrict a company’s ability to reach markets, partner internationally or generate revenue—think of them like travel visas for products and know‑how; violations can lead to fines, lost contracts and serious legal and reputational risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company is Organizing an Independent Texas-based Manufacturing Platform, Contributing Proprietary Composite Technology and Engineering Expertise to Support Planned U.S. Drone-Frame Production

Strategic Real Estate Negotiations Anchor High-Precision Automated Carbon Fiber Drone Frame Production Footprint in Texas, Building Upon over 50 Years of Composite Material Expertise

TAICHUNG, Taiwan and HOUSTON, Oct. 19, 2026 (GLOBE NEWSWIRE) -- J-Star Holding Co., Ltd. (Nasdaq: YMAT) (“J-Star” or the “Company”), an innovator in advanced composite manufacturing, today announced progress on its planned U.S. drone frame production initiative, including ongoing negotiations to acquire a commercial manufacturing facility located in the Greater Houston area.

The proposed facility would serve as the manufacturing base for YMA (TX) INC., an independent U.S. legal entity that J-Star is organizing as a platform for potential joint ventures for drone-frame production with North American commercial unmanned aerial vehicle (“UAV”) developers, aerospace original equipment manufacturers (“OEMs”), and industrial partners.

J-Star's role in the initiative is focused on contributing its composite-materials expertise, proprietary technology and engineering capabilities, while supporting the early stages of facility development and production-line installation. The initiative is intended to extend the Company's existing capabilities in advanced composite manufacturing into the U.S. drone market while maintaining its core focus on composite engineering, material science and manufacturing.

J-Star’s Strategic Role as Organizer, Technology Provider, and Constructor

YMA (TX) INC. is intended to provide a foundation for collaborations through joint-venture frameworks with North American UAV developers, aerospace OEMs, and industrial partners. The scope and timing of production activities will depend on completion of the facility transaction, subsequent site preparation and equipment installation, and the development of commercial relationships.

Under this framework, J-Star serves as the primary organizer and key technology partner, contributing:

• Proprietary technology and licensing: Carbon fiber composite technologies, including custom resin matrix formulations, composite-to-metal interlocking structural designs and automated carbon fiber skin-to-skeleton welding methodologies;
• Engineering and material science: Structural design, material testing, and resin matrix optimization supplied by J-Star’s research laboratory, YMA Corporation, in Taichung, Taiwan;
• Facility development and production set-up: Contribute technical and operational support for facility procurement, site preparation, cleanroom configuration, production-line installation, in Houston; and
• Export control and data safeguards: Development of operational protocols at YMA (TX) INC. designed to address applicable U.S. export control requirements and safeguard access to controlled technical data and technology strictly to authorized U.S. Persons.

Building on Decades of Carbon Fiber Manufacturing Experience

The Houston facility will build directly upon J-Star’s over 50-year operational legacy in advanced carbon fiber composite manufacturing. Tracing its lineage back to 1970, the Company has steadily climbed the technological ladder—evolving from high-volume sports racquets and lifestyle bicycles to advanced robotic arm components, specialized healthcare equipment, automotive structures, and now precision drone frames. By combining decades of proven material science, specialized resin chemistry, and deep experience in massive high-precision production with automated U.S. assembly, YMA (TX) INC. will deliver high-reliability composite hardware to power and to support the growing U.S. drone industry.

Supporting U.S.-based Drone Manufacturing

The proposed Houston-area facility would provide a U.S. location for planned drone-frame manufacturing. Its location is within the Greater Houston aerospace region.

By combining J-Star’s composite materials capabilities with planned U.S. manufacturing operations, the Company seeks to establish a platform through which it can engage with North American UAV developers and industrial partners.

"Being in active negotiations to secure our Houston manufacturing site located in the Greater Houston area marks a decisive step forward in our North American expansion strategy," stated Jonathan Chiang, Chairman and Chief Executive Officer of J-Star. "By establishing YMA (TX) INC. as an independent, collaborative platform operating under strict U.S. data protection standards, J-Star is effectively connecting our over 50 years of carbon fiber industry experience, proprietary resin chemistry, and technical engineering with onshore U.S. joint-venture partners. We are providing the foundational IP, technology licenses, and early-stage construction support required to build a world-class automated drone frame production facility in Houston, Texas."

The completion of the real estate transaction remains subject to final negotiations, customary closing conditions, and due diligence protocols, with facility preparation, site retrofitting, and joint-venture onboarding planned to proceed following final settlement.

About J-Star Holding Co., Ltd.

J-Star Holding Co., Ltd. is a global manufacturer of carbon fiber and composite material products, with a legacy in high-performance cycling components and a growing portfolio of applications across healthcare, automotive, and other advanced materials markets. For more information, visit j-starholding.com. For more information on the corporate structure of J-Star Holding Co., Ltd., refer to “Item 4. Information On The Company – A. History and Development of the Company – Our Corporate Structure” described in our most recent annual report on Form 20-F, filed on April 30, 2026.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the Company's capital markets strategy, its U.S. expansion plans, and its evaluation of opportunities in aerospace and defense-adjacent markets. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including those described in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F and its registration statement on Form F-3, as amended. The Company undertakes no obligation to update any forward-looking statements, except as required by law.

Contact

Matt Chesler, CFA
FNK IR
646-809-2183
investor@j-starholding.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Has J-Star completed its Houston drone-frame facility acquisition?

No. J-Star is in negotiations to acquire the Greater Houston facility, with completion subject to final negotiations, customary closing conditions and due diligence. Facility preparation, retrofitting and joint-venture onboarding are planned to follow final settlement.

What export-control safeguards are planned for J-Star's Texas drone manufacturing platform?

J-Star is developing operational protocols at YMA (TX) INC. designed to address applicable U.S. export-control requirements and restrict access to controlled technical data and technology to authorized U.S. Persons.