What you need to know: • DWS issued shares at a premium to market as part of the earnouts from its acquisition of Perigon Beverage Group. • This provides a new floor for the stock ($0.196/share and $0.21/share), and tells us that Perigon is performing well on gross margins. • There has also been some insider buying on the stock from CFO Basman Alias and Director Ronald MacEachern. • We remain bullish on DWS as it proves its turnaround to investors. We recently initiated coverage on DWS, read our full report here. Friday after market close, Diamond Estates Wines & Spirits (DWS:TSXV, DWWEF:OTC) announced that it has issued 679.9K shares to the principals of Perigon Beverage Group at $0.21/share (17% premium to market). This is the second of three share issuances for Perigon based on the six-month gross margin earnouts set out in September 2024. Additionally, DWS issued 254.9K shares to 2RL Capital Inc. in connection with the Perigon acquisition and the ongoing services provided. This was completed at a price of $0.196/share, a 9% premium to the last close. Both sets of shares have a ~4-month hold. We view this as a positive indicator as the Company is settling its earnouts at a premium to the market price, providing a new floor for the stock. We are maintaining our BUY Rating and target price of $0.30/share on Diamond Estates. Initiation Recap We recently initiated coverage on Diamond Estates (see here), highlighting that the Company has emerged from a multi-year turnaround with clear operational momentum. After several years of divestitures, cost reductions, and balance sheet clean-up, DWS has returned to profitability, posted consistent margin expansion, and regained revenue growth, supported by a leaner operating model and expanded grocery and convenience access. Recent quarterly results have continued to validate the early stages of this recovery. Q1/26 and Q2/26 delivered two of the strongest quarters in the Company’s recent history, with revenue up 35% and 10% YoY, respectively, and gross margin reaching a record 66% in Q2/26. Adjusted EBITDA also reached $1.4M in Q1/26 and $1.8M in Q2/26, reflecting the growing impact of operating leverage. Net debt has declined meaningfully to $16.8M from peak levels of $32.4M, positioning DWS to enter the second half of its FY26 with improving financial flexibility and a clearer runway for sustained growth.