EMERGE Successfully Completes the Sale of Its Entire Portfolio of Shop Domain Names to Shopify Inc.

Toronto, ON – January 7, 2025

A New Chapter for EMERGE Commerce Ltd.

In a strategic move to bolster its cash position and focus on core growth areas, EMERGE Commerce Ltd. (TSXV: ECOM) ("EMERGE" or the "Company") has announced the sale of its premium web domains, Shop.ca and Shop.us, to Shopify Inc. (NYSE: SHOP), for US$375,000, or approximately CA$536,000.

A Strategic Decision

The sale of these dormant domains marks a significant milestone for EMERGE, as it seeks to optimize its assets and drive growth in key areas. According to Ghassan Halazon, founder and CEO of EMERGE, "The Shop domains had been idle and non-revenue generating in recent years under our ownership. As such, management felt that monetizing these dormant domains via a sale to Shopify, in return for non-dilutive cash proceeds to fund future growth plans made perfect sense."

A Strong Cash Position

EMERGE’s financial position has improved significantly over the past year, with its cash balance exceeding $3.0M at year-end, compared to $1.6M at September 30, 2024, and $2.5M at December 31, 2023. The sale of the Shop domains will further enhance EMERGE’s liquidity, enabling the Company to focus on strategic initiatives and drive growth in its core businesses.

A Year of Transformation

The sale of the Shop domains marks a notable conclusion to a transformative year for EMERGE. During this period, the Company has achieved several key milestones, including:

Re-igniting organic revenue growth
Improving profitability
Substantially reducing debt
Growing its cash position year-over-year

A Strong Foundation for Growth

As EMERGE looks ahead to 2025, management is committed to driving growth and expansion in the Company’s core businesses. The sale of the Shop domains will enable EMERGE to focus on key areas, including:

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Grocery Businesses

EMERGE’s grocery businesses include:

trulocal: A premium meat and seafood subscription brand
Carnivore Club: An artisanal meat brand

Golf Businesses

EMERGE’s golf businesses include:

UnderPar: A discounted tee-times/experiences brand
JustGolfStuff: A golf products & apparel brand

A Commitment to Growth

As EMERGE continues on its growth trajectory, management is committed to exploring opportunities to monetize non-core/legacy assets and further bolster the Company’s cash position. With a strong foundation in place, EMERGE is well-positioned for continued success in 2025.

About EMERGE Commerce Ltd.

EMERGE Commerce Ltd. (TSXV: ECOM) is a premium e-commerce brand portfolio in Canada and the U.S. The Company operates subscription and marketplace e-commerce properties that provide members with access to unique offerings across grocery and golf verticals.

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Cautionary Notice

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.

Notice Regarding Forward-Looking Statements

This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions, and including statements with respect to the anticipated savings to result from the implementation of the cost optimization and synergies initiative. Readers are cautioned not to place undue reliance on forward-looking information.

Forward-Looking Information

The forward-looking information contained in this press release is expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention, and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.