Reports a Historical Repossession Rate Under One Percent, Highlighting the Strength of Its Asset-Light Automotive Financing Platform, and Announces Meeting Date for Its 2026 Annual General and Special Meeting
VANCOUVER, B.C. - November 3, 2026
<p><strong>OCAL Financial Reports a Historical Repossession Rate Under One Percent, Highlighting the Strength of Its Asset-Light Automotive Financing Platform, and Announces Meeting Date for Its 2026 Annual General and Special Meeting</strong></p>
<p><em>Fewer than one in a hundred vehicle loans arranged since 2021 has ended in repossession; approximately 99 percent of signed contracts have been funded by lenders; annual general and special meeting on December 10, 2026</em></p>
<p>VANCOUVER, B.C. - November 3, 2026 - OCAL Financial Inc. (“OCAL” or the “Company”) (TSXV: OCAL; FSE: JC3), the technology-enabled automotive financing and purchasing platform that gets Canadians approved for financing first and holds no standing vehicle inventory, today announced that fewer than one percent of the vehicle loans arranged through its platform since 2021 have resulted in repossession, according to management information for the period from the Company’s first funded transaction in 2021 to September 30, 2026, based on lender reporting.</p>
<p>The Company believes this historical performance reflects the effectiveness of its credit verification procedures, lender relationships, disciplined financing practices, and customer-first approach that prioritizes financial eligibility and affordability before vehicle selection.</p>
<p>With more than 1,500 cumulative funded vehicle transactions and audited revenue of $6.48 million in the fiscal year ended August 31, 2025, OCAL has an established commercial operating history while maintaining an asset-light structure that eliminates the need for standing vehicle inventory. A funded vehicle transaction is a retail vehicle sale arranged through OCAL’s platform for which the customer’s financing contract was funded by a lender and the vehicle was delivered to the customer; the cumulative count is drawn from the Company’s transaction records and lender reporting since its first funded transaction in 2021 and is not a measure presented in its financial statements.</p>
<h2>Operating Highlights</h2>
<p><strong>Disciplined Transaction Quality and a Scalable Business Model:</strong> OCAL’s process begins with financing approval and ends with the vehicle, reversing the conventional dealership sequence. Through its approval-first approach, OCAL verifies each customer’s identity, income, creditworthiness and financing eligibility, explains the approval in plain terms, and only then sources a vehicle that fits the approved terms. This approach is designed to improve transaction quality, reduce financing uncertainty and strengthen lender confidence.</p>
<p>According to management, approximately 99 percent of signed customer contracts were successfully funded by lenders over the period from the Company’s first funded transaction in 2021 to September 30, 2026, reflecting the Company’s ability to convert approved transactions into completed vehicle sales. Unlike a lender, OCAL does not retain consumer loans on its balance sheet or assume the associated credit-default risk.</p>
<p><strong>Commercial Traction and Operating Efficiency:</strong> OCAL’s revenue model combines vehicle sales with financing-related compensation and protection products, creating multiple sources of revenue on every transaction. Management reports that approximately 98 percent of funded transactions include a warranty or other protection product, and that repeat and referral customers accounted for approximately 17.6 percent of funded transactions over the previously disclosed trailing twelve-month period. Every vehicle OCAL sells is under five years old, inspected and reconditioned before delivery, and carries a two-year, unlimited-kilometre warranty.</p>
<p><strong>Technology-Enabled Compliance and Scalable Infrastructure:</strong> OCAL operates through a centralized digital workflow that integrates customer verification, financing approvals, vehicle sourcing through OPENLANE Canada after approval, digital contracting and delivery to the customer’s door, with every disclosure, signature and transaction recorded. The Company is licensed in British Columbia and Alberta and intends to apply the same infrastructure as it expands into additional Canadian markets, subject to applicable licensing and regulatory approvals.</p>
<h2>Management Commentary</h2>
<p>“Maintaining a repossession rate below one percent over our operating history reflects the discipline behind every transaction and the trust we work to build with our customers.” said Mehdi Moghareh, Chief Executive Officer of OCAL Financial.</p>
<p>“Many customers come to us facing challenges with financing approval, finding the right vehicle, accessing a dealership or simply understanding their financing options. We solve the problem first, and the vehicle follows. Our approval-first model builds trust with customers and lenders while providing a scalable foundation for long-term growth and profitability.”</p>
<h2>Operating Performance</h2>
<h2>Transaction Economics and Path to Profitability</h2>
<p>OCAL’s asset-light business model is designed to generate multiple revenue streams from each funded vehicle transaction while maintaining a largely fixed operating cost structure. In the fiscal year ended August 31, 2025, the Company’s audited revenue increased 18.8 percent to $6,480,254, gross profit increased 32.7 percent to $810,751, or 12.5 percent of revenue (fiscal 2024: $610,787, or 11.2 percent), and operating expenses decreased 9.8 percent to $1,114,195, narrowing the operating loss to $303,444 from $624,056. Finance, insurance and other products contributed $701,727 of fiscal 2025 gross profit.</p>
<p>The Company’s operating costs are largely fixed. As transaction volumes increase, OCAL has the potential to spread its fixed costs across more vehicle sales, improving operating efficiency and advancing toward profitability. Beginning with its November 10, 2026 news release, OCAL intends to report operating metrics for each closed month, using the same definitions each time.</p>
<p>The fiscal 2025 and fiscal 2024 figures above are taken from the Company’s audited financial statements for the year ended August 31, 2025, filed on SEDAR+ at www.sedarplus.ca.</p>
<h2>2026 Annual General and Special Meeting of Shareholders</h2>
<p>The Company also announces that it will hold its annual general and special meeting of shareholders on December 10, 2026 at 9:00 a.m. (Vancouver time) at Suite 1600, 925 West Georgia Street, Vancouver, British Columbia (the “Meeting”). The board of directors of the Company has fixed the close of business on November 2, 2026 as the record date for the Meeting. At the Meeting, shareholders will be asked to: (i) set the number of directors of the Company at four; (ii) elect directors of the Company for the ensuing year; and (iii) approve the adoption of a new omnibus equity incentive plan of the Company to replace the Company’s existing stock option plan.</p>
<p>In connection with the completion of the Company’s qualifying transaction on July 15, 2026 (the “Qualifying Transaction”), Crowe MacKay LLP resigned as auditor of the Company, and DMCL LLP was appointed as auditor of the Company. Accordingly, at the Meeting, shareholders will also be asked to re-appoint DMCL LLP as auditor of the Company until the next annual meeting of the Company and authorize the directors to fix its remuneration. In the opinion of the Company, no “reportable event” (as such term is defined in Section 4.11(1) of National Instrument 51-102 Continuous Disclosure Obligations (“NI 51-102”)) has occurred. The Company is relying on Section 4.11(3)(a) of NI 51-102 for an exemption from the change of auditor requirements of Section 4.11 of NI 51-102.</p>
<p>Further details concerning the Meeting will be set out in the Company’s management information circular, which will be sent to shareholders and made available under the Company’s profile on SEDAR+ at www.sedarplus.ca in advance of the Meeting.</p>
<h2>About OCAL</h2>
<p>OCAL Financial Inc. (TSXV: OCAL; FSE: JC3) is a technology-enabled automotive financing and purchasing platform transforming how Canadians finance and purchase vehicles. Built around an approval-first approach, OCAL connects customers with suitable financing options before sourcing a vehicle that meets their needs and budget. Its integrated platform brings together credit assessment and financial guidance, lender matching, vehicle sourcing, digital transactions and home delivery anywhere in the provinces it serves, eliminating the need to visit a traditional dealership. OCAL holds no standing vehicle inventory; it sources each vehicle only after a customer is approved, through OPENLANE Canada, its auction and sourcing channel. OCAL earns revenue from vehicle sales and related finance and protection products, and does not hold consumer loans or assume credit-default risk. Licensed in British Columbia and Alberta, OCAL generated revenue of $6.48 million (audited) in the fiscal year ended August 31, 2025 and has completed more than 1,500 funded vehicle transactions to date.</p>
<p>To learn more about OCAL, visit <a href="https://www.ocalfinancial.ca"><u>www.ocalfinancial.ca</u></a>.</p>
<h2>Investor Contact</h2>
<p>Shushu Feng, Investor Relations</p>
<p>Matthew Friesen, Executive Chairman</p>
<p>Mehdi Moghareh, Chief Executive Officer</p>
<p><a href="mailto:investors@ocal.ca">investors@ocal.ca</a> · 1 (604) 687-7765 · ocalfinancial.ca</p>
<h2>Cautionary Notes</h2>
<p>This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.</p>
<h2>Cautionary Note Regarding Forward-Looking Information</h2>
<p>This news release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”) within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer’s prospective financial performance or financial position. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding: the Company’s business plans and technology development; plans to expand into various provinces; the Company’s intention to report operating metrics on a monthly basis; the Company’s belief that its business model can scale efficiently and advance toward sustainable profitability; the Company’s intention to apply its compliance framework and infrastructure in new markets; and the Meeting, including the date of the Meeting and all matters to be voted on thereat. To develop the forward-looking information in this news release, the Company made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; the continued availability of lender and auction relationships on acceptable terms; the continued performance of customer contracts consistent with historical experience; and the ability of the Company to execute and achieve its business objectives. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to: adverse market conditions; changes in general economic, business and political conditions; changes in applicable laws and regulations; compliance with extensive government regulation; reliance on key and qualified personnel; reliance on third-party lenders and on OPENLANE Canada; risks associated with the technology industry in general; the risk that historical repossession and funding rates are not maintained; and the risk factors disclosed under the heading “Risk Factors” in the filing statement of the Company available on SEDAR+ at www.sedarplus.ca. The foregoing list of material risk factors and assumptions is not exhaustive. The Company assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.</p>
<p><strong>Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.</strong></p>