Allied Corp. Updates Corporate and Operational Developments Amidst Market Growth and Regulatory Challenges

July 31, 2026 — Leads & Copy — Allied Corp. is providing an update on recent corporate and operational developments, highlighting a significant business transformation over the past 18 months. The Company has secured multi-year commercial agreements, obtained CUMCS-GACP certification for its facility in Colombia, and commenced export activities to regulated markets, including Germany, where its products have reached pharmacies. Allied has also streamlined its organization and operations into a more efficient, execution-focused structure with key hires.

The Company has moved beyond its initial development phase, establishing certifications, quality systems, regulatory approvals, export channels, and initial commercial traction. Allied's immediate priorities include enhancing product quality and consistency, reinforcing its infrastructure, and increasing production capacity to meet market demand for compliant cannabis products.

The global medical cannabis market is experiencing rapid growth. In Germany, imports surged from 72.85 tonnes in 2024 to 201 tonnes in 2025, according to the German Federal Institute for Drugs and Medical Devices (BfArM). Industry trends indicate a rising demand for cost-effective and compliant production from countries like Colombia, which offers year-round cultivation and scalable output. Allied is experiencing this trend directly, with commercial interest and demand exceeding its current production capabilities. The Company has received additional inbound requests it cannot fulfill, underscoring the need for immediate capital to scale consistent and compliant production.

In personnel changes, Mr. Paul Bullock has resigned as the Company's interim CFO and COO, effective July 27, 2026. He had not performed services or been paid since the Company's last financial filings in January 2025. Allied has accepted his resignation and expressed gratitude for his contributions. The existing executive team and Board will manage the finance and operational functions on an interim basis. Mr. Bullock also resigned as a Director of the Company on the same date. To conclude its connection to Canada, Allied has changed its mailing address to one in the United States and updated its SEDAR+ profile on December 8, 2025. Daily management continues to be conducted outside of Canada, with a focus on its Colombian operations.

The British Columbia Securities Commission (BCSC) has issued a cease trade order (CTO) against Allied Corp. due to the Company's failure to file its unaudited consolidated interim financial statements for the period ended February 28, 2025, and the related management's discussion and analysis. The Company also failed to file its unaudited consolidated financial statements for the period ended May 31, 2025, and its audited consolidated financial statements for the year ended August 31, 2025, along with their respective management's discussion and analysis. Allied intends to apply to the BCSC to revoke the CTO and to cease being a reporting issuer in British Columbia. The CTO prohibits trading in the Company's securities until the required filings are made and the CTO is revoked by the Executive Director of the BCSC. However, the order does not prevent the Company from trading its securities with persons outside of Canada, from outside of Canada.

Despite cost reductions and deferred compensation implemented by management and the Board to preserve operations, Allied's liquidity and working capital remain critically constrained. The Company is actively pursuing financing and restructuring alternatives to address its working capital needs, focusing on sources outside of Canada and from non-Canadian residents. The BCSC's CTO remains in effect, and the Company will adhere to applicable securities laws.

Source: Allied Corp.