HPQ’s Next Battery Chapter: A Proposed U.S.-Based Company With Majority Ownership Expected And A Potential U.S. Listing

<p>WHAT YOU NEED TO KNOW</p><p>• Dedicated U.S. Business: Project ENDURA would establish a standalone platform to finance, develop and commercialize HPQ’s North American battery activities.</p><p>• Majority Ownership Expected: HPQ would retain an expected 55% interest following the contemplated initial financing, alongside US$4.2 million in cash consideration and a royalty on defined NewCo net revenue.</p><p>• Capital For Commercial Development: The financing target of approximately USD 20 million includes an anticipated investment of at least USD 8 million in production equipment and manufacturing capabilities. Allocations remain preliminary.</p><p>• Other Activities Retained: HPQ’s existing Novacium equity interest, North American clean-hydrogen licences and fumed silica project would remain outside the contemplated transaction.</p><p>• Potential U.S. Listing: The parties are evaluating a possible future U.S. public listing, subject to financing, market conditions and applicable regulatory and exchange requirements.</p><p>STRATEGIC IMPLICATIONS</p><p>For an emerging battery business, developing technology and financing commercial operations require different resources. Project ENDURA is intended to bring dedicated leadership, operating capabilities and third-party capital into one company focused on the North American market.</p><p>HPQ has principally funded battery development at the parent company level. The proposed structure would shift commercial financing toward NewCo, with the objective of reducing reliance on additional HPQ common share issuances. That does not eliminate potential HPQ dilution: the company expressly notes that it may require additional financing for its retained activities.</p><p>The proposed ownership structure would preserve HPQ shareholders’ indirect participation in the North American battery business. Cash consideration and a royalty would provide additional components of the contemplated transaction, while HPQ’s retained activities would remain outside it.</p><p>Open Markets would assist with transaction structuring, executive recruitment, operational setup, commercial development and financing coordination. Its partners and advisers bring prior experience at institutions including J.P. Morgan, Credit Suisse and Bank of America Merrill Lynch. These credentials reflect previous professional roles and do not represent financing commitments to Project ENDURA.</p><p>The search for a CEO, CFO and other executives has commenced,