Supremex Completes Sale-Leaseback of Two Properties

Transaction unlocks significant value to shareholders

Resulting net cash position will provide greater flexibility to carry out business strategy

MONTREAL, July 10, 2025 (GLOBE NEWSWIRE) -- Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, announced today that it completed a sale-leaseback transaction in respect of its two owned properties for gross proceeds of $53.0 million, subject to certain post-closing adjustments (the “Transaction”). As a result of the Transaction, the Company will enjoy even greater financial flexibility to continue executing its business strategy and returning value to shareholders.

Pursuant to the terms of the definitive agreements entered into in respect of the Transaction, the Company, indirectly through certain of its wholly-owned subsidiaries, sold its properties located on Cordner Street in LaSalle, Quebec, and on Humberline Drive in Etobicoke, Ontario, to entities affiliated to Brasswater, a leading real estate development firm in Eastern Canada and the United States. These facilities house the Company’s two primary envelope sales and manufacturing premises, while the LaSalle facility also houses corporate offices. At the closing of the Transaction, Supremex entered into lease agreements in respect of the properties for an initial 10-year term. The lease agreements also include three five-year renewal options at fair market rent.

“This transaction unlocks significant value for shareholders and considerably strengthens our balance sheet. It also provides even greater financial flexibility which, combined with our strong free cash flow generation, will enable us to focus on achieving our strategic objectives and sustaining profitable growth while continuing to optimize returns to shareholders,” said Stewart Emerson, President and Chief Executive Officer of Supremex.

About Supremex

Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates ten manufacturing facilities across four provinces in Canada and five manufacturing facilities in three states in the United States employing approximately 900 people. Supremex’ extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs and solutions providers.

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Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the purported use of the net proceeds of the Transaction by the Company, the intended benefits of the Transaction for the Company and its stakeholders, and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and ability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Supremex cautions that such assumptions may not materialize and that economic conditions such as economic uncertainty, downturns or recessions, or the imposition of tariffs or trade restrictions, may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.

Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the possibility that the Company may not be able to realize the intended benefits of the Transaction in the manner as they are currently anticipated, or at all, as well as the other risks and uncertainties discussed throughout in the Company's management discussion and analysis for the year ended December 31, 2024, and in the Company's annual information form dated March 20, 2025, particularly under the heading “Risk Factors”. Consequently, the Company cannot guarantee that any forward-looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.