PesoRama Secures C$21M in Upsized Offering to Fuel Mexican Expansion

TORONTO, ON – May 21, 2026 – PesoRama Inc. (TSXV:PESO), the Canadian operator of JOi Dollar Plus stores in Mexico, today announced a significant upsize to its public offering of senior unsecured convertible debentures, boosting the total from C$16 million to C$21 million due to what the company described as "strong demand." The move signals robust investor confidence and provides the retailer with crucial capital to restructure its balance sheet by retiring senior debt, paving the way for its aggressive expansion in the burgeoning Mexican value retail market.

The offering, managed by lead agent and sole bookrunner Canaccord Genuity Corp., consists of 21,000 convertible debentures at a principal amount of C$1,000 each. This financial instrument is designed to attract investors with a blend of debt and equity features, reflecting a strategic approach to funding the company's next growth phase.

A Vote of Confidence from Investors

The decision to increase the offering by over 30% is a clear indicator of market appetite for PesoRama’s growth story. Investors are being offered a 9.0% annual interest rate, payable semi-annually, providing a steady income stream. The debentures mature in 36 months, offering a medium-term investment horizon.

The key feature, however, is the conversion option. Debenture holders can convert their principal into PesoRama common shares at a price of C$0.91 per share. This conversion price represents a significant 30% premium over the stock's recent 10-day volume-weighted average trading price, suggesting that both the company and its new investors anticipate substantial share price appreciation as its strategy unfolds.

For the company, the structure provides flexibility. After six months, if PesoRama’s stock performs exceptionally well—trading at or above 150% of the conversion price for ten consecutive days—it can compel holders to convert their debt into equity. This would further strengthen the balance sheet by eliminating the debt obligation. Conversely, PesoRama also retains the right to repay the debentures in cash, with a declining premium, providing an alternative path to manage its capital structure depending on market conditions.

Strategic Reshuffle of the Balance Sheet

The primary stated use for the net proceeds is the repayment of outstanding senior debt. This is a classic and prudent corporate finance maneuver aimed at optimizing a company's financial health. By replacing existing senior debt—which often comes with more restrictive covenants and potentially higher floating interest rates—with medium-term convertible debentures, PesoRama can achieve several strategic goals.

First, it simplifies the company's debt profile and provides greater financial flexibility to pursue its operational objectives without being constrained by legacy debt agreements. Based on recent financial statements, the company has been carrying a revolving loan that has grown in the past year, and retiring this type of obligation can free up working capital and reduce interest expense pressure.

Second, this refinancing strengthens the balance sheet for the long term. While still a liability, convertible debt is often viewed by the market as "quasi-equity," especially when the conversion is likely. This can improve the company's credit metrics and its ability to secure different types of financing in the future if needed. The successful execution of this C$21 million offering, led by a reputable firm like Canaccord Genuity, adds a layer of institutional validation to PesoRama’s financial management and strategic direction.

Fueling an Ambitious Expansion in Mexico

While the immediate purpose is debt retirement, the underlying driver for this capital raise is growth. A fortified balance sheet is the foundation upon which PesoRama plans to build its retail empire in Mexico. The company, which launched its first JOi Dollar Plus store in 2019, has been on an aggressive expansion trajectory.

The company's performance metrics underscore the momentum. In its most recent reported quarter, total sales surged by nearly 24%, with same-store sales growing by 5.9% over the first nine months of the fiscal year. Crucially, product gross margins have improved to 46.1%, and customers are spending more, with the average ticket size increasing by almost 16%.

This operational success is fueling a rapid rollout of new stores. With 35 locations open as of April 2026, the company is on track to hit 40 stores by the end of June. The long-term vision is far more ambitious: PesoRama aims to open another 30 stores in 2026 and eventually operate a network of 500 JOi Dollar Plus locations across Mexico, a market it estimates could support up to 13,000 dollar stores. This offering provides the financial stability necessary to maintain that blistering pace of expansion.

Navigating a Competitive and Promising Market

PesoRama is positioning itself as "the only true dollar store company in Mexico," with a consistent value proposition where all items are priced at the equivalent of five Canadian dollars or less. This clear, predictable pricing model, combined with a modern store design and a wide assortment of over 7,000 products, is designed to capture a loyal customer base in a market ripe for disruption.

The opportunity is significant. Mexico's retail market is valued in the hundreds of billions of dollars, yet the formal dollar store segment remains relatively underdeveloped compared to the United States and Canada. This "wide-open" landscape is what attracted PesoRama, but it is also drawing the attention of global retail giants.

The competitive field is heating up. The current market leader is Waldo's Dollar Mart, with an established footprint of around 800 stores. Meanwhile, US-based Dollar General has already entered the market with its "Mi Súper Dollar General" brand, and Canadian powerhouse Dollarama has announced plans to pilot its first stores in Mexico this year. Furthermore, the dominant local player, Walmart de México (Walmex), continues to invest heavily in its value-focused formats like Bodega Aurrerá, which compete for the same price-sensitive consumer.

Against this backdrop, PesoRama's strategy of rapid expansion and brand building is a race against time. Securing C$21 million through this oversubscribed offering is not just a financial transaction; it is a strategic injection of capital that equips the company to accelerate its rollout, strengthen its supply chain, and solidify its brand presence before the competition fully mobilizes. The offering, expected to close around June 1, 2026, subject to regulatory approvals, marks a critical step in the company's quest to become a national leader in Mexican value retail.