Calgary, Alberta--(Newsfile Corp. - August 13, 2026) - Kovo+ Holdings Inc. (TSXV: KOVO) ("Kovo" or the "Company") announces that, further to its press release of August 6, 2026, the Company's board of directors (the "Board of Directors") has established a special committee of directors (the "Special Committee") to, among other things, lead the Company's evaluation of strategic and financing alternatives in connection with the default notice and demand for repayment (the ("Default Notice") received from its secured creditor, Avonlea Ventures #2 Inc. ("AVI").

The Special Committee has been authorized by the Board to review, evaluate and, as appropriate, negotiate and make recommendations to the Board with respect to various potential strategic transactions and alternatives available to the Company as a result of the alleged events of default under the Company's 2nd Amended & Restated Senior Loan and Security Agreement dated August 29, 2024 and secured promissory grid note dated May 1, 2025, both as extended and amended pursuant to extension agreements dated May 1, 2025, June 30, 2025, July 31, 2025, August 29, 2025, and April 20, 2026 . To assist in its work, the Special Committee may engage professional advisors as it considers appropriate, including legal, financial and accounting advisors.

While the Special Committee conducts its evaluation, the Company remains committed and is engaging in ongoing discussions with AVI to identify, review and evaluate viable solutions available to the Company. The Company has also initiated a comprehensive search for a new chief executive officer and is considering both internal and external candidates. For the purpose of establishing continuity during this crucial period, Mr. Chris Burch, the current president of HEAL Global Holdings Inc., the Company's wholly-owned subsidiary responsible for Kovo's revenue cycle management and credentialing business, has agreed to serve as interim Chief Executive officer of the Company, such appointment being supported by the entire board of directors.

In addition, as AVI has expressed its expectation that the Company adhere to certain timelines and because it is acknowledged that any negotiated arrangement between the Company and AVI will require disinterested shareholder approval pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, the Company has determined that it is necessary to immediately call a special meeting of shareholders for October 1, 2026, on a preemptive basis to consider, and if thought fit, transactions which may be proposed by AVI, in cooperation with the Special Committee, in the coming weeks (the "Special Meeting"). Details regarding any transactions proposed by AVI and which require disinterested shareholder approval will be set forth in an information circular delivered to shareholders in due course in compliance with applicable law. Such Special Meeting may be adjourned, postponed, delayed or cancelled should negotiations not result in a mutually beneficial transaction proposal.

The Company has not yet determined a definitive timeline for the completion of these processes and negotiations (other than in respect of the earliest timing of the Special Meeting) and does not intend to comment further unless and until it determines that additional disclosure is appropriate in the circumstances and in accordance with applicable securities laws. Kovo cautions that there are no guarantees that the processes will result in any particular outcome. The Company will continue to operate its business as usual as it undertakes these processes.

About Kovo+ Holdings Inc.

Kovo is a versatile technology company leading the charge in AI initiatives to drive impact and innovation across diverse industries. Kovo remains committed to its core business-model of strategic growth opportunities within mid-market Medical Billing firms, where exploitive business optimization synergies exist. Moving forward, Kovo will integrate accretive broader healthcare sector additions to its portfolio and opportunities beyond in multiple new markets. Dedicated to revolutionizing business process optimization through technological advancements and evolving AI-applied methods, Kovo embodies a commitment to ensured and enduring profitability. To learn more about Kovo and to keep up to date on Kovo news, visit www.kovoplus.com.

Cautionary Note Regarding Forward-Looking Information

Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities laws. Such forward-looking statements or information are provided to inform the Company's shareholders and potential investors about management's current expectations and plans relating to the future and include, but are not limited to, statements in respect of the strategic review process and results thereof, chief executive officer search, the availability of strategic alternatives, the ability of the Company to accomplish its business objectives and future plans, the likelihood of the Company or the Special Committee developing a negotiated transaction with AVI or a third-party, the success of such negotiated transaction and the likelihood of AVI enforcing its secured interests, the timing and holding of the Special Meeting, the content of any information circular describing a transaction between AVI and the Company, the nature of such transaction and the development and operations of the Company. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "anticipate", "proposed", "estimates", "would", "expects", "intends", "plans", "may", "will", and similar expressions. Forward-looking statements or information are based on a number of factors and assumptions that have been used to develop such statements and information, but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or expressly qualified by this cautionary statement.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309580

Source: Kovo+ Holdings Inc.