Emergia Inc. Announces the Signing of a Term Sheet for a Merger with Kraken Holding

Montreal, Quebec--(Newsfile Corp. - June 12, 2024) - Emergia Inc. (CSE: EMER) ("EMERGIA") is pleased to announce the signing of an LOI with Kraken Holdings ("KRAKEN") upon which KRAKEN's real estate holding will be merged with EMERGIA.

The Term Sheet is subject to a 45-day exclusivity period for the completion of due diligence, meeting certain conditions and to negotiate definitive, binding agreements. Mr. Hasan Al-Shawa, Emergia Co-founder and former Chairman, acted as Adviser and worked tirelessly to help conclude the term sheet.

About KRAKEN: Kraken Holding is a leading real estate Developer and Operator in the Abitibi-Témiscamingue Region of Québec. Their current real portfolio, valued at $121 million and developed in less than eight years, will serve as a solid foundation for the group's ambitious 2025-2030 plan whose goal is to reach 2,500 doors worth over $400 million, including more than 1,000 new doors in Abitibi-Témiscamingue. A possible partnership with EMERGIA and its real estate and financial ecosystem would undoubtedly enable us to reach 4,000 doors and exceed $650 million over the same period.

KRAKEN is led by 2 prominent and dynamic entrepreneurs from Abitibi-Témiscamingue, Yannick Richard and Jonathan Bourgelas-Nicol. "They represent great value-added to Emergia's Team and will undoubtedly propel the Company towards ambitious goals of profitable growth. We are looking forward to succeeding with them," said Faraj Nakhleh, Chairman of EMERGIA.

The Abitibi-Témiscamingue Region has a GDP per capita 21% higher than the rest of Québec. It is rich in Gold, silver, Copper & Lithium, among many other precious metals that are anchors of the world financial systema, technology products and economy.

For more information, please contact Yannick Richard (819) 856-0940,
Yannick.richard@perseus-sc.ca

ABOUT EMERGIA INC.

EMERGIA is a Montreal, Canada based owner, acquirer, operator, manager, and developer of revenue producing multi-purpose real estate, including retail, multifamily, industrial, and office buildings as well as land for immediate developments. The Corporation operates mainly in Quebec & Ontario, and its investment platform is based on an integrated, agile and efficient develop-to-own strategy that enables EMERGIA and its shareholders to benefit from development profits and the value-add while securing stable long-term returns.

The Corporation has recently gone through a major change in mission focus at the request of shareholders, brought in an experienced and hands on and proactive new Board and Chairman, and is actively working with financial and real estate partners on a major reorganization and refocusing on its core mission. In a matter of weeks, EMERGIA announced the disposal of some non-core and costly assets, potential investments by large financial partners, and the acquisition of a large portfolio of cashflow positive assets with development upside.

For more information, please visit www.emergia.com and www.sedarplus.ca : EMER.CN
Faraj Nakhleh, Chairman, Emergia Inc.
T: 514.781.4613

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Source: EMERGIA INC.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by looking for words such as "about", "approximately", "may", "believes", "expects", "will", "intend", "should", "plan", "predict", "potential", "project", "anticipate", "estimate", "continue" or similar words or the negative thereof or other comparable terminology. Such forward-looking information includes, without limitation, statements with respect to the effect of the global market conjuncture on the Corporation's financial condition, the anticipated closing of the Private Placement, business strategy and plans, and objectives of or involving the Corporation. The forward-looking information is based on certain key expectations and assumptions made by the Corporation, including expectations and assumptions concerning satisfaction of all conditions of closing, absence of exercise of any termination right and the timing and receipt of regulatory approval with respect to the Private Placement and the issuance of the private placement shares and the availability of capital resources. Although the Corporation believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the effect of the global market conjuncture on the Corporation's financial condition, the real estate industry, and society as a whole. the market for the common shares, volatility of market price for common shares and other risks generally attributable to the business of the Corporation. For additional information with respect to risks and uncertainties, refer to the annual MD&A of the Corporation for the year ended December 31, 2021, filed on SEDAR at www.sedarplus.ca.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.

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