Sangoma Technologies (SANG) Exceeds FY25 Debt Reduction Targets Ahead of Plan

Sangoma Technologies Corporation (Nasdaq: SANG) announced today that following the accelerated achievement of its previously announced debt reduction targets under its capital allocation strategy, the Company is launching a Normal Course Issuer Bid (the “NCIB”) with respect to its common shares (the “Shares”).

On March 24, 2025, the Company issued an irrevocable notice for an additional $2.9 million debt repayment under its credit facility, bringing the total repayments for the third quarter to approximately $7.3 million. This includes the full repayment of the Company’s Term Loan 1, reducing total debt to approximately $53 million at the end of Q3. With this milestone, Sangoma has surpassed its previously announced Fiscal 2025 capital allocation target of reducing debt to $55-$60 million well ahead of schedule.

Capitalizing on the consistent operating cash flow generated by the business, Sangoma remains committed to strengthening its balance sheet to support future acquisitions, drive long-term profitable growth, and allocate capital efficiently. With the successful acceleration of our debt reduction strategy, we are now in a strong position to continue to return value to shareholders. The Company believes that the current market price of our shares presents an attractive opportunity given the company’s strong fundamentals and long-term growth potential. As such, the Board has authorized the Company to proceed with a NCIB as a prudent and strategic use of capital. This buyback program reflects our confidence in the Company’s future while ensuring we maintain the financial flexibility to continue accelerating the Company’s strategic alternatives as disclosed in its last earnings release. The timing and amount of repurchases will depend on factors such as valuation, liquidity, and potential acquisitions.

The Toronto Stock Exchange (the “TSX”) has accepted a notice filed by the Company of its intention to make a NCIB. The notice provides that Sangoma may, during the 12-month period commencing March 27, 2025 and ending no later than March 26, 2026, purchase up to 1,679,720 Shares, representing approximately 5% of the total number of 33,594,409 Shares outstanding as of March 17, 2025. The NCIB will be made through the facilities of the TSX, the NASDAQ Global Select Market or alternative Canadian trading systems. Shares will be acquired under the NCIB at the market price and will be purchased for cancellation.

The average daily trading volume of the Shares on the TSX (the “ADTV”) for the most recently completed six calendar months is 37,718. Pursuant to TSX policies, daily purchases under the NCIB will be limited to 9,429 Shares, representing 25% of the ADTV, subject to the Company’s ability to make one block purchase of the Shares per calendar week that exceeds such limit. The Company will fund purchases of Shares under the NCIB through surplus cash available from its operations.

Sangoma has entered into an automatic share purchase plan with a designated broker to allow for the purchase of Shares under the NCIB at times when the Company would ordinarily not be permitted to purchase Shares due to self-imposed blackout periods, insider trading rules or otherwise.

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