Exhibit
99.1
Worksport
Signs Term Sheet to Acquire U.S.-Manufactured Truck Bed Accessory Business & Accompanying IP Portfolio
Proposed
first acquisition targets revenue growth through cross-selling to Worksport’s U.S. wide dealer network and 50,000+ email targeted
customers
Product
intended for standalone sales + bundled sales with Worksport’s tonneau covers and scaled through its U.S. manufacturing and distribution
network
West
Seneca, New York, November 04, 2026 - Worksport Ltd. (Nasdaq: WKSP) (“Worksport” or the “Company”), a U.S.-based
innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods
markets, today announced it has signed a term sheet to acquire a growing business with a patented, U.S.-manufactured truck bed accessory
already on the market. The proposed acquisition, Worksport’s first, would be a step in the Company’s strategic plan to
grow beyond tonneau covers by leveraging its U.S.-based enterprise-level manufacturing infrastructure toward a broader range of products.
It is intended to create new sales opportunities across the Company’s new and existing customers and distribution channels.
The
announcement follows Worksport’s preliminary third-quarter results, reported November 3, which included record net sales of
approximately $7.24 million and operating cash use reduced to approximately 5% of net sales. With the core business now converting
its investment into sales and cash, the Company is turning to the next step: getting more out of the manufacturing enterprise, distribution
channels, and large customer base it has already built.
Proposed
Acquisition Highlights
| ● | Patented
and U.S.-manufactured: an established U.S made brand, with intellectual property, already
selling in the market |
| | | |
| ● | Complementary
to Worksport’s tonneau covers: a second product for the same truck owner and the
same truck bed |
| | | |
| ● | Built-in
path to market: cross-selling to Worksport’s existing customers and distribution
partners, and packaging sales with existing Worksport tonneau cover buyers, simultaneously
opening up new, larger market opportunities |
Why
This Business
Worksport’s
tonneau covers protect what is in the truck bed. This patented product is designed to make that cargo easier to access. If completed,
the proposed acquisition would add a natural companion product for the same customer, sold through the same channels.
Like
Worksport’s own products, it is built in America. Worksport designs and manufactures its proprietary tonneau covers in-house at
its West Seneca, New York facility, and the proposed acquisition would extend that model to a second product line, with the intent to
leverage Worksport’s existing mature infrastructure.
According
to SEMA, vehicle owners spent more than $15 billion modifying pickups in 2025, including nearly $4 billion on utility accessories
such as racks, toolboxes and covers.
Putting
Worksport’s Scale to Work
Worksport
already has what a product like this needs to grow: U.S. manufacturing, an established brand and a distribution network that accounted
for 50% of September net sales. Its customer database includes more than 50,000 targetable customers acquired through organic
growth and paid advertising, in addition to its extensive nationwide distribution network. Management believes selling to existing customers
can cost less than acquiring new ones, potentially improving marketing returns and supporting margins over time. Following completion,
Worksport intends to bundle the product with its top-selling NEXUS tonneau cover during major promotional periods.
The
proposed transaction also points to a broader direction. Worksport sees its established enterprise level manufacturing, distribution
and loyal, growing customer base as a platform that can support more than one product type. The Company believes that adding proven,
U.S.-made accessories like this one can be a repeatable way to put that platform to work.
Status
of the Proposed Transaction
The
term sheet is non-binding with respect to the proposed acquisition. Completion remains subject to ongoing due diligence, negotiation
and execution of definitive agreements, and satisfaction of applicable closing conditions. There can be no assurance that a definitive
agreement will be signed or that the proposed acquisition will be completed. The Company believes it will close on this acquisition in
the near term.
CEO
Commentary
“Our
customers have already shown us that they care about their truck bed and what goes in it,” said Steven Rossi, Founder and Chief
Executive Officer of Worksport. “We have spent years building U.S. manufacturing, distribution and a loyal, growing customer
base, and this proposed transaction is about putting all three to work. This product found buyers with one founder and a website.
We want to see what it can do with our plant, our channels and our customers. It also shows the industry where we are headed:
Worksport is more than a tonneau cover company. As our brand matures, we want to be the natural home for far more than American-made
tonneau covers. We have enterprise level infrastructure to build amazing products in the USA and we’re able to begin strategically
leveraging that infrastructure to our advantage. Reaching positive operating cash flow remains our first priority, and we believe the
platform we have built can do a lot more. This is just the beginning. Sony’s first product was a humble rice cooker; ours is tonneau
covers. Like Sony, leveraging our foundational product and infrastructure for growth is the next step in our expansion towards
something much bigger. Brick by brick!”
Stay
tuned for more as Worksport continues to expand its product line, and join our mailing list to stay up to date with the latest: Join
Worksport’s Newsletter
Contacts
Investor
Relations, Worksport Ltd. T: 1 (888) 554-8789-128
W:
investors.worksport.com W: www.worksport.com E: investors@worksport.com
Connect
with Worksport Chief Executive Officer, Steven Rossi
Steven
Rossi LinkedIn |
About
Worksport
Worksport
Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau
covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with
Hyundai for the SOLIS Solar cover. Additionally, Worksport’s hard-folding cover, designed and manufactured in-house, is compatible
with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks
to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile
energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy’s website is terravisenergy.com.
Connect
with Worksport
Please
follow the Company’s social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube,
and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company’s newsletters
at investors.worksport.com.
Social
Media Disclaimer
The
Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than
content published by the Company. Investors and others should note that the Company announces material financial information to its investors
using its investor relations website, press releases, Securities and Exchange Commission (“SEC”) filings, and public conference
calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors,
the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material
non-public information on social media. If there is any significant financial information, the Company will release it broadly to the
public through a press release or SEC filing prior to publishing it on social media.
Preliminary
Results and Operating Metrics
The
third-quarter financial information referenced in this release was reported by the Company on November 3, 2026, is preliminary and unaudited,
is based on management’s current close, remains subject to the completion of quarter-end review procedures, and may differ from
the results to be reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
Operating
cash use refers to net cash used in operating activities as presented in the Company’s preliminary condensed consolidated statement
of cash flows prepared in accordance with U.S. GAAP. B2B and distribution mix reflects preliminary net sales to business and distribution
customers as a percentage of total net sales, as classified by management. Operating cash use as a percentage of net sales is net cash
used in operating activities divided by preliminary net sales for the same period. These metrics are not substitutes for recognized net
sales and may differ from similarly titled metrics used by other companies.
Forward-Looking
Statements
The
information contained herein may contain “forward-looking statements.” Forward-looking statements reflect the current view
about future events. Forward-looking statements in this release include expectations regarding the proposed acquisition, including the
completion of due diligence, the negotiation and execution of definitive agreements, the satisfaction of closing conditions and the timing
of completion; the integration, manufacturing and sale of the acquired product; cross-selling, bundling and marketing efficiency; future
product additions or acquisitions; margins; and progress toward operating cash flow breakeven. When used in this press release, the words
“anticipate,” “believe,” “estimate,” “scheduled,” “expect,” “future,”
“intend,” “plan,” “project,” “envisioned,” “should,” or the negative of these
terms and similar expressions, as they relate to us or our management, identify forward-looking statements. These statements are neither
historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions
regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes
in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation
may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in
the forward-looking statements include, among others, the following: (i) the Company’s ability to complete due diligence, negotiate
and execute definitive agreements and complete the proposed acquisition on acceptable terms or at all; (ii) the Company’s ability
to integrate the acquired product and realize anticipated cross-selling and other benefits; (iii) supply chain delays; (iv) acceptance
of our products by consumers; (v) delays in or nonacceptance by third parties to sell our products; (vi) competition from other producers
of similar products; (vii) production constraints and working-capital requirements; (viii) the Company’s ability to continue reducing
operating cash use; and (ix) the availability of financing on acceptable terms. More detailed information about the Company and the risk
factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the SEC, including,
without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are
urged to read these documents free of charge on the SEC’s web site at www.sec.gov. As a result of these matters, changes
in facts, assumptions not being realized or other circumstances, the Company’s actual results may differ materially from the expected
results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press
release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent
events or circumstances, except as required by applicable law.
