Financial Performance - Revenue for Q2 2026 was $8.5 million, an increase of $0.8 million from $7.7 million in Q2 2025, driven by the Winery division's sales growth in grocery and big-box stores [4] - Gross margin for Q2 2026 was $5.9 million, an increase of $1.7 million from $4.2 million in Q2 2025, with gross margin as a percentage of revenue growing to 69.8% from 53.8% [4] - Adjusted EBITDA increased by $1.3 million to $1.8 million in Q2 2026 from $0.5 million in Q2 2025, attributed to improving gross margins in the Winery division [4] - EBITDA decreased by $0.1 million to $0.9 million in Q2 2026 from $1.0 million in Q2 2025, primarily due to non-operational items in the prior year [4] - Net income decreased from $0.2 million in Q2 2025 to $Nil in Q2 2026, influenced by non-operational and one-time items [4] Strategic Initiatives - The company is focusing on strengthening its portfolio and investing in the retail sales team, aiming for significant growth in VQA products [7] - The company is benefiting from a strong 'buy local' movement, which is expected to persist over the long term [7] Shareholder Actions - The company issued an aggregate of 764,917 common shares at a price of $0.21 per share as part of the contingent consideration for the acquisition of Perigon Beverage Group [1] - The company granted a total of 1,250,000 stock options at a strike price of $0.19 per option to an officer, with options vesting at 25% annually [3] - Amendments to the Company's Stock Option Plan and DSU Plan were approved, allowing for a maximum of 13,376,703 common shares to be issued under security-based compensation arrangements [5] Debt Management - The company obtained a 60-day forbearance on most convertible debentures and related accrued coupon interest, with expectations for a rollover under updated terms [6]

Core Viewpoint - Diamond Estates Wines & Spirits Inc. is holding a Special Meeting of its Shareholders on December 22, 2025, to discuss the approval of a license agreement with Lassonde Holdings, which involves royalty rates and trademark acquisition options related to the D'Ont Poke the Bear brand [1][2]. Company Overview - Diamond Estates Wines & Spirits Inc. is a producer of high-quality wines and ciders and serves as a sales agent for over 120 beverage alcohol brands across Canada. The company operates four production facilities, primarily in Ontario and British Columbia, producing VQA wines under various well-known brand names [4]. License Agreement Details - The license agreement, established on May 10, 2024, involves Diamond Estates' subsidiary, Diamond Ltd., and Lassonde Holdings. It includes provisions for royalty payments based on sales of the D'Ont Poke the Bear brands and options for Diamond Ltd. to acquire DPTB trademarks at specified times [2]. Meeting Information - Further details regarding the Special Meeting and the matters to be discussed will be provided in the Management Information Circular, which will be available on the company's website and SEDAR+ profile by November 28, 2025 [3].

Core Points - Diamond Estates Wines & Spirits Inc. has entered into a Seventh Amendment to its Second Amended and Restated Credit Agreement with Bank of Montreal, effective November 10, 2025 [1] - The company expresses gratitude to Bank of Montreal for its support during its financial turnaround, as indicated by its Fiscal 2024/25 year-end and Q1 results [2] - The company will release its Q2 results towards the end of November [2] Company Overview - Diamond Estates Wines & Spirits Inc. produces high-quality wines and ciders and acts as a sales agent for over 120 beverage alcohol brands across Canada [3] - The company operates four production facilities, three in Ontario and one in British Columbia, producing predominantly VQA wines under various well-known brand names [3] Product Portfolios - The wine portfolio includes renowned brands such as Fat Bastard, Gabriel Meffre, and Kaiken, among others from various countries [5] - The spirits portfolio features distinguished brands like Tag Vodka, Ginslinger Gin, and Barnburner Whisky, as well as international brands from Mexico, Scotland, and the UK [6] - The beer, cider, and ready-to-drink (RTD) portfolio includes products from Ontario and international brands from Belgium, the Netherlands, and Germany [7] Credit Facilities - A bulge amount credit facility of $3,600,000 has been established, maturing on the earlier of the cancellation request date or March 27, 2026 [9] - A limited recourse guarantee has been added, granted by Lassonde Industries Inc. in favor of BMO, not exceeding the outstanding Bulge Amount [9] - Interest rates have been amended to Prime Rate plus 2.65% during the Temporary Bulge Period and Prime Rate plus 2.40% at all other times [9]

Company Announcements - Diamond Estates Wines & Spirits Inc. has issued 248,683 deferred share units (DSUs) to non-executive directors at a deemed price of $0.19 per DSU, totaling $47,250 in deferred compensation [1] - The company has granted 600,000 share options to Basman Alias, the new Chief Financial Officer, at a strike price of $0.19 per share option, which are exercisable for five years and vest at 25% annually [2][3] Strategic Insights - The share option grants are indicative of the key role Basman Alias plays in executing Diamond Estates' strategic plan, emphasizing the alignment of management success with shareholder interests [3] Upcoming Events - The company encourages shareholders to vote in advance of the upcoming shareholder meeting on October 30, 2025, due to ongoing Canada Post service disruptions, with proxy votes required by October 28, 2025 [3] Company Overview - Diamond Estates is a producer of high-quality wines and ciders, operating four production facilities in Canada and representing over 120 beverage alcohol brands [4][5]

Core Insights - Diamond Estates Wines & Spirits Inc. reported financial results for the fiscal year 2025, showing a revenue decrease but improvements in gross margin and EBITDA [1][6][9]. FY 2025 Summary - Total revenue for FY 2025 was $24.5 million, down from $28.5 million in FY 2024, a decrease of $4.0 million [6]. - The Winery division saw an increase in sales of $2.3 million, while the Agency division experienced a decrease of $6.3 million [6]. - Gross margin as a percentage of revenue improved to 52.7% in FY 2025 from 40.7% in FY 2024, with gross margin increasing by $1.3 million to $12.9 million [6]. - EBITDA increased by $6.8 million to positive $1.1 million in FY 2025 from a negative $5.7 million in FY 2024 [6]. - Net loss decreased from $10.7 million in FY 2024 to $2.5 million in FY 2025 [6]. Q4 2025 Summary - Total revenue for Q4 2025 was $4.2 million, a decrease of $1.3 million compared to Q4 2024 [6]. - Gross margin for Q4 2025 was $2.3 million, down from $3.7 million in Q4 2024, with gross margin as a percentage of revenue at 55.0% compared to 67.3% in Q4 2024 [6]. CFO Transition - Basman Alias has been appointed as the new Chief Financial Officer, effective August 27, 2025, succeeding Ryan Conte [4][5][7]. - Ryan Conte's departure was a planned transition, and he may consult with Lassonde Industries Inc., the largest shareholder of Diamond [5]. Strategic Developments - The company has benefited from retail expansion, government support, and a growing consumer preference for Canadian wines, which positively impacted the Winery division [6][9]. - Recent acquisitions, including the D'Ont Poke the Bear brand and the Perigon Beverage Group sales agency, align with the company's strategy to diversify and strengthen its business [9].

Company Overview - Diamond Estates Wines & Spirits Inc. is a producer of high-quality wines and ciders and serves as a sales agent for over 120 beverage alcohol brands across Canada [5] - The company operates four production facilities, three located in Ontario and one in British Columbia, producing predominantly VQA wines under various well-known brand names [5] Financial Reporting Delay - The company announced a delay in filing its financial statements, management's discussion and analysis, and CEO and CFO certificates for the year ended March 31, 2025, which were due by July 30, 2025 [1][3] - The delay is attributed to the need for additional audit procedures required by the external auditor concerning certain transactions and estimates included in the financial statements [2] Regulatory Implications - Due to the filing delay, the company expects to be noted in default by applicable securities regulatory authorities in Canada, leading to a 'failure-to-file' cease trade order (CTO) from the Ontario Securities Commission [4] - The CTO is anticipated to prohibit any trading in the company's securities across all Canadian jurisdictions where it is a reporting issuer and will remain in effect until the required filings are completed [4]