AUTOCANADA COMPLETES SALE OF THREE BRITISH COLUMBIA DEALERSHIPS

Transaction unlocks value, reduces debt and provides opportunity to reallocate capital toward higher-return opportunities.

Transaction Highlights

• Completed the sale of three British Columbia dealerships for gross proceeds of approximately $32.2 million.
• In the trailing twelve months ended Q1 2026, the three dealerships generated approximately $111 million in revenue and incurred a net loss of $1 million.
• Net proceeds will initially be used to repay the Company's revolving credit facility, increasing financial flexibility and supporting future investment in higher-return growth opportunities.

EDMONTON, AB, July 15, 2026 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a leading Canadian multi-location automobile dealership and collision repair group, today announced that it has completed the sale of Island Chevrolet Buick GMC in Duncan, BC, Abbotsford Volkswagen in Abbotsford, BC, and Chilliwack Volkswagen in Chilliwack, BC.

AutoCanada received gross proceeds of approximately $32.2 million, comprised of $28.8 million for goodwill and fixed assets, excluding inventory and net working capital, and $3.4 million for real estate. In the trailing twelve months ended Q1 2026, the three dealerships generated approximately $111 million in revenue and incurred a net loss of $1 million.

The divested dealerships operated outside of AutoCanada's core regional operating clusters, limiting opportunities to realize operating scale and efficiency. As a result, the assets did not meet the Company's return thresholds and represented an opportunity to unlock capital for debt reduction and investment in high-return opportunities.

"This transaction reflects our disciplined approach to capital allocation," said Samuel Cochrane, Chief Executive Officer of AutoCanada. "While we are committed to growing our dealership network across Canada, we will not tolerate assets that do not meet our long-term return objectives. Where we see a path to improved performance, we will act decisively to execute a turnaround. Where we do not, we will redeploy capital into opportunities that deliver stronger returns and greater value for our shareholders."

About AutoCanada

AutoCanada's Dealership Operations segment operates 61 franchised dealerships in Canada, comprised of 23 automotive brands across 8 provinces as well as three independent used dealerships ("Used Vehicle Operations"). AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, and Volkswagen vehicles. In 2025, our Canadian dealerships sold approximately 71,000 new and used retail vehicles. AutoCanada's U.S. franchise dealerships, operating as Leader Automotive Group ("Leader"), operate 9 franchised dealerships comprised of 6 brands in Illinois, USA. In 2025, our U.S. dealerships sold approximately 8,000 new and used retail vehicles. Leader is classified as discontinued operations as the Company progresses the sale of its U.S. dealership portfolio.

AutoCanada's Collision Centre Operations segment operates 37 collision centres ("Collision Centres"), supported by 26 Original Equipment Manufacturer ("OEM") certifications covering 37 vehicle brands. The Company's Collision Centre Operations enables customer retention across multiple touchpoints within the automotive ownership lifecycle.

Forward-Looking Statements

Certain statements contained in this press release are forward-looking statements and information (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause our actual results to differ materially from those identified in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe" and similar expressions) are not all historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict.

Forward-looking statements in this press release include: AutoCanada's future financial position, and the redeployment of capital into higher-return growth opportunities.

Forward-looking statements provide information about management's expectations and plans for the future and may not be appropriate for other purposes. Forward-looking statements are based on various assumptions, and expectations that AutoCanada believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove correct. Those assumptions and expectations are based on information currently available to AutoCanada, and the historic performance of AutoCanada's businesses. AutoCanada cautions that the assumptions used to prepare such forward-looking statements could prove to be incorrect or inaccurate.

The forward-looking statements are also subject to the risks and uncertainties set forth below. By their very nature, forward-looking statements involve numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, AutoCanada's actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking statements. These risks and uncertainties include risks relating to failure to realize expected cost-savings, compliance with laws and regulations, reduced customer demand, operational risks, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) the Company's Management's Discussion & Analysis for the three-month period and year ended December 31, 2025 (the "MD&A") under Section 12 Risk Factors and (ii) AutoCanada's most recent Annual Information Form (the "AIF"). The preceding list of assumptions, risks and uncertainties is not exhaustive.

Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Therefore, any such forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this press release and in the MD&A.

Details of the Company's material forward-looking statements are included in the Company's most recent AIF. The AIF and other documents filed with securities regulatory authorities (accessible through the SEDAR+ website at https://www.sedarplus.ca) describe the risks, material assumptions, and other factors that could influence actual results and which are incorporated herein by reference.

When relying on our forward-looking statements to make decisions with respect to AutoCanada, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements are provided as of the date of this press release and, except as required by law, AutoCanada does not undertake to update or revise such statements to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

Additional Information

Additional information about AutoCanada is available at the Company's website at https://www.autocan.ca and on SEDAR+ at https://www.sedarplus.ca.

SOURCE AutoCanada Inc.

For further information contact: Sam Cochrane, Chief Executive Officer, Phone: 780.732.3157, Email: [email protected]