Mercanto Holdings Reports Strong Early Performance of New Québec Listings and Steady Core Portfolio

Mercanto Holdings Reports Strong Early Performance of New Québec Listings and Steady Core Portfolio

Titanimal hash and CBD 10 mg capsules reordering above plan; fiscal 2026 results expected before end of November

TORONTO, Oct. 6, 2026 /CNW/ -- Mercanto Holdings Inc. (TSXV: MUSH) (mercantoholdings.com) ("Mercanto" or the "Company") today provides an update on its three newest Société québécoise du cannabis ("SQDC") listings and its established portfolio.

Québec orders

• SQDC purchase orders averaged approximately $110,000 per week over the four weeks ended September 30, 2026, all from recurring reorders. A year earlier, in the first quarter of fiscal 2026, the Company's total revenue across all channels averaged approximately $69,000 per week.
• Mercanto has sixteen active SQDC listings, most on minimum one-year terms.

New launches — all three at or above plan

Initial SQDC orders stock store shelves and the online channel at launch and are substantially larger than weekly reorders; the four-week average above includes no initial orders. Reorders then follow weekly sell-through and are the better measure of ongoing demand.

• Velada Titanimal ice-water hash (2 g) — initial order of approximately 7,800 units. The first production lot sold through, capacity has been added, and reorders average roughly 550 units per week, with the latest week the strongest since launch.
• Velada CBD 10 mg capsules — launched in August 2026. Reorders have risen three weeks in a row and are ahead of plan. The 10 mg completes Velada's CBD capsule range in Québec: 10, 25, 50 and 100 mg online, with 10 mg and 50 mg also in stores.
• Cereal Milk rosin-infused pre-rolls (3 × 0.5 g) — initial order of approximately 5,600 units. Launch demand outpaced supply; supply was restored within two weeks and stores are now fully stocked. A second rosin-infused pre-roll, Guavacot Kush, reorders weekly.

The full brand portfolio is on mercantoholdings.com, under Brands.

Core portfolio

• Nordique Royale Afghan Gold cartridge — approximately 1,000 units per week. Consistently among the province's top eight distillate cartridges, usually around sixth, at the highest price point in its category.
• Velada Cherry Blossom cartridge — approximately 750 units per week, around eighth in the category, with a half-strength, CBD-balanced profile unique on the Québec shelf.
• Nordique Royale Afghan Gold hash — approximately 500 units per week, reordered every week for close to three years.
• CCELL 510 battery — Québec's best-selling battery at approximately 2,400 units per week.

Outlook

• Fiscal 2026 results (year ended July 31, 2026) expected before the end of November.
• Fiscal 2027 is expected to be the first year with twelve full months of vape cartridges and batteries, alongside the three new listings.
• With most of its SQDC listings on minimum one-year terms, management believes the Company enters fiscal 2027 with its most predictable revenue base to date.
• Net income of $145,212 for the nine months ended April 30, 2026; no long-term debt other than lease liabilities.

Financial history, share structure, governance and news-release alerts are available on mercantoholdings.com, under Investors.

Purchase-order and unit figures are unaudited, are derived from SQDC purchase orders received by the Company and third-party sell-through data, and include applicable excise duty. Purchase orders are not a measure of revenue under IFRS, do not have a standardized meaning and may not be comparable to measures presented by other issuers; revenue is recognized when products are delivered. These figures are not a forecast of revenue or results.

About Mercanto Holdings Inc.

Mercanto Holdings Inc. (TSXV: MUSH) is a Québec-based house of cannabis and wellness brands. Through its wholly owned subsidiary Teonan Biomedical Inc., a Health Canada standard processing licence holder, the Company develops, manufactures and markets Nordique Royale (hash and vape cartridges), Velada (capsules, hash and pre-rolls) and Le P'tit Snack (edibles), sold through provincially authorized retailers, primarily in Québec. Learn more at mercantoholdings.com.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian securities legislation, which may be identified by words such as "expect", "anticipate", "will", "intend" and similar expressions. Forward-looking information in this release includes statements regarding: the expected timing of the release of the Company's fiscal 2026 results; the expectation that fiscal 2027 will be the first year with twelve full months of vape cartridge and battery sales, alongside the three new listings; the continued listing, shelf placement, listing terms and ordering of the Company's products by the SQDC and other provincial retailers; expected revenue visibility; and the Company's financial position and capital management.

Forward-looking information is based on management's current expectations and on assumptions that management believes are reasonable, including that: the SQDC will continue to order the Company's products at rates consistent with recent experience; listings will not be withdrawn before the end of their minimum terms; the Company and its third-party manufacturing partners will be able to supply demand; and there will be no material adverse change in the regulatory, tax or excise environment. Such information is subject to known and unknown risks and uncertainties that could cause actual results to differ materially, including: the Company's dependence on the SQDC, which accounts for the large majority of its sales; changes in provincial purchasing, inventory or listing decisions, including delisting; supply-chain disruptions and reliance on third-party manufacturers; pricing pressure, competition and changes in consumer demand; regulatory and excise developments; and the other risks described in the Company's filings available under its profile at www.sedarplus.ca. Recent purchase-order activity is not necessarily indicative of future orders or of reported revenue for any period. Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking information except as required by law.

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.

SOURCE Mercanto Holdings Inc.