Avila advised the Proposal Trustee that certain adverse changes occurred with respect to Avila's operations, finances and their ability to complete their Rights Offering by January 14, 2026. As a result of these adverse changes Avila is not able to proceed with the Application for Court approval of the Revised Proposal on January 22, 2026. In response to these adverse changes the Proposal Trustee issued a material adverse change report dated January 14, 2026 which is posted in the Reports section.

On October 29, 2025 a revised proposal ("Revised Proposal") was sent to Avila's creditors along with a notice advising that a second creditors' meeting was being held on November 14, 2025 ("Second Creditors' Meeting") to vote on the Revised Proposal. At the Second Creditors' Meeting the creditors voted in favour of the Revised Proposal by the requisite majority. A Court application was scheduled for January 22, 2026 to seek Court approval for the Revised Proposal.

On April 28, 2025 Avila brought an application seeking Court approval and sanctioning of the Proposal. Between the March 21, 2025 creditors meeting and the April 28, 2025 Court application Avila made certain amendments to the proposal. At the April 28, 2025 application the Court did not approve the Proposal and determined that a second creditors meeting would be required to allow the creditors to vote on the amendments that had been made to the Proposal.

Take notice that the Proposal Trustee intends to finalize administration of the Proposal. Pursuant to Section 3.4 of the Proposal, every person with an Affected Claim has a period of 30 days from the dated of this notice to prove its Claim. If any Affected Creditor does not proved its claim by May 11, 2025 (the "Claims Bar Date") they will be barred from making a Claim in this Proposal or sharing in any distribution therein.

On February 28, 2025 Avila filed a Division 1 Proposal pursuant to the provisions of Part III Division 1 of the Bankruptcy and insolvency Act, RSC 1985, c-B-3 as amended (the "Proposal"). A creditors meeting was held on March 21, 2025 to vote on the Proposal. At the creditor’s meeting the creditors voted in favour of the Proposal by the requisite majority.

On February 28, 2025, Avila filed a Division 1 Proposal pursuant to the provisions of Part III Division 1 of the Bankruptcy and insolvency Act, RSC 1985, c-B-3 as amended (the "Division 1 Proposal").

As required by the Division 1 Proposal the Proposal Trustee has called a meeting of creditors on March 21, 2025, at 1PM MT (the "Creditor's Meeting"), for the purpose of voting on the Division 1 Proposal.

To attend and vote on the Division 1 Proposal at the Creditor's Meeting each creditor must have submitted a proof of claim to the Proposal Trustee prior to the start of the Creditor's Meeting.

Copies of the Division 1 Proposal, Notice of Creditor's Meeting, blank proof of claim, proxy form and voting letters can be found under the "Proposal" sub-page on the Proposal Trustee's website.

Subsequent to the initial Division 1 Proposal being filed an amendment was made to section 2.11 which changed the original language from "interest will not accrue or be paid on Affected Claims" to now read "interest will not accrue or be paid on Unsecured Claims". The version of the Proposal included on the "Proposal" sub-page of the Proposal Trustee's website is the amended version.

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