Israel Canada (T.R) Ltd. — Capital/Financing Update 2026

May 25, 2026

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer. .

Israel Canada (T.R) Ltd

("the Company")

To

Securities Authority

www.isa.gov.il

May 25, 2026

To

The Tel Aviv Stock Exchange Ltd.

www.tase.co.il

Subject: Immediate Report - Entering into a Refinancing Agreement (Refinance) and Voucher Arrangement regarding the SHE Project

Further to what was stated in section 8.11 of the Description of Corporate Business Report which was attached as Chapter A to the Company's Periodic report for December 31, 2025¹ (the "Periodic report"); regarding the SHE project, held by the Company at a rate of approximately 81% (the "Project"); the Company is honored to update that on May 20, 2026, the Company, through Israel Canada In The City Limited partnership, which holds all the rights in the Project, entered into a refinancing agreement (Refinance) with a local bank (the "Lender"), for the provision of a credit facility in a total amount not exceeding approximately 478 million NIS (obligo), including financial credit and a Sale Law guarantees credit facility² (the "Financing Agreement"), which will be used to repay the existing credit totaling approximately 340 million NIS, as well as for the purpose of financing the project's construction works and issuing Sale Law guarantees to purchasers in the project.

For further details regarding the Financing Agreement, see Appendix A attached to this immediate report.

For details regarding the Project, see section 8.11 of the Periodic report.

Terms not explicitly defined in this report shall have the meaning given to them in the Periodic report.

Sincerely,

Israel Canada (T.R) Ltd

Signed by:

Guy Canada, Deputy CEO

Appendix A - Details regarding the Financing Agreement

¹ As published on March 24, 2026, reference number: 2026-01-026135, the information from which is provided in this report by way of reference.

² The issuance of Sale Law guarantees to apartment buyers in the project, in an amount up to 100 million NIS, is part of the credit facility.

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This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Name of Borrower	Company's share in the project (ultimate holding)	Date of agreement engagement	Credit facility amount	Final maturity date	Pledges / Collateral	Annual interest rate (Effective interest rate)	Change of control/authority/structure clause	Other obligations
Israel Canada In The City Limited partnership ("the Borrower")	80.95%	20/05/2026	Up to 478 million NIS, including credit and Sale Law guarantees credit facility.	20/05/2028 (Bank guarantees and Sale Law guarantees shall expire according to their terms)	To secure the repayment of the credit, first-degree fixed charges were registered (or will be registered, in accordance with the schedule agreed with the Lender) in favor of the Lender, unlimited in amount, as is customary in agreements of this type, including the pledges and collateral detailed below:
1. Mortgage on all the Borrower's rights in the real estate (ownership);
2. Pledge and assignment by way of pledge on all rights in the project, including the Borrower's rights under the agreement with the execution contractor, the Borrower's rights under sales contracts signed/to be signed with apartment purchasers, and rights in the Borrower's accounts and the Borrower's rights in the project insurance;	Annual interest at a rate of Prime with a margin between (-0.2%) and 0.1% ("the Margin")
(Adjusted interest rate 5.40% - 5.71%)

In addition, the Borrower will pay the Lender customary fees for agreements of this type. | Until the full and final repayment of the credit, no structural change shall be performed regarding the Borrower and no change in ownership of the Borrower shall occur, including change of control, without obtaining the Lender's prior written consent. | Financial Covenants
In order to utilize part of the credit facility for the payment of fees and levies, the Borrower is additionally required to meet the following obligations: equity investment in the project in an amount not less than 250 million NIS; pre-sales of apartments in an amount not less than 150 million NIS; project insurance.

Preconditions for credit facility utilization
Registration of collateral in favor of the Lender; payment of all fees; absence of breaches or anticipated breaches; absence of legal prevention.

Grounds for immediate repayment
The Financing Agreement includes customary grounds for immediate repayment of the credit and/or for the realization of collateral, subject to agreed cure periods, including: Breach of obligations under the credit documents; inaccuracy of a material representation; delay in |

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This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Name of Borrower	Company's share in the project (ultimate holding)	Date of agreement engagement	Credit facility amount	Final maturity date	Pledges / Collateral	Annual interest rate (Effective interest rate)	Change of control/authority/structure clause	Other obligations
					3. Unlimited continuous guarantee by the Company, to secure the Borrower's obligations.			payment of any amount; liquidation proceedings, insolvency, compromise or arrangement; receivership, foreclosure or execution proceedings regarding material assets of the Borrower or the pledged assets; change of ownership or control of the Borrower without consent; cessation of work or a substantial part of it for a period exceeding 30 days; material adverse change in the Borrower's business; material deterioration in the value of collateral without providing alternative collateral; transfer of rights in the project or the pledged assets without prior consent; occurrence of certain grounds for immediate repayment (mutatis mutandis) regarding any of the guarantors, or the occurrence of one or more cases listed in any other documents signed or to be signed by the Borrower (or any guarantor for the Borrower) towards the Lender, constituting grounds for immediate

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This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Name of Borrower	Company's share in the project (ultimate holding)	Date of agreement engagement	Credit facility amount	Final maturity date	Pledges / Collateral	Annual interest rate (Effective interest rate)	Change of control/authority/structure clause	Other obligations
								repayment of any debt.

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