Argo Corporation Advances Smart Transit Initiatives Amid Activity on the TSX Composite Index

Highlights

• Argo reports proceeds from sale of subordinate-voting shares in FoodsUp Inc.
• Launch of Smart Routing Transit System revolutionizes public transit with vertical integration.
• Progress in the development of Argo School with a focus on safe, on-demand student transportation services.

Argo Corporation, active in the technology and transit sectors, continues to show growth while aligning with developments on the TSX Composite Index. With a focus on sustainable transportation and smart public transit solutions, the company reported gains from a key share transaction and expanded its role in innovative urban mobility technologies.

Smart Routing Transit System Deployment

A major milestone for Argo Corporation was the development and deployment of its Smart Routing™ Transit System, a fully integrated platform designed to provide dynamic and efficient on-demand transit services. This system utilizes real-time routing software, electric vehicles, and full-service operations, setting a new standard for public transportation solutions. The Smart Routing™ system is being gradually rolled out in the town of Bradford West Gwillimbury, replacing the traditional fixed-route bus system. This initiative highlights Argo’s commitment to providing smarter, greener alternatives for public transit across North America.

Research and Development Initiatives

Argo’s commitment to innovation is also evident in its substantial investments in research and development. The company allocated significant resources to the creation of its proprietary Smart Routing hardware and the AI-powered software ecosystem that underpins the Smart Routing system. This technological infrastructure includes the vertical integration of hardware onboard Argo X1 electric vehicles, further enhancing the performance and efficiency of the transit network. The development of this next-generation transit system aims to address various challenges in urban mobility while advancing sustainability goals.

Argo School: On-Demand Student Transportation

In addition to its transit system advancements, Argo Corporation has made progress in the education sector with the launch of Argo School. This initiative, which began in September, provides on-demand transportation services for students across multiple schools in Ontario. The Argo School program is designed to ensure safe and efficient transportation for students, with a flexible, on-demand model that caters to the needs of families and school districts. This expansion into educational transportation further exemplifies Argo’s versatility and commitment to improving transportation solutions across various sectors.

FoodsUp Inc. Investment and Strategic Transactions

Argo maintains a significant non-controlling interest in FoodsUp Inc., holding a majority share in the platform, which serves as one of Canada’s prominent restaurant supply solutions. As of the end of fiscal year 2024, Argo’s interest in FoodsUp amounted to a substantial percentage of the company’s overall portfolio. Additionally, Argo entered into two option agreements in early 2025, providing the holders with the irrevocable option to purchase subordinate-voting shares of FoodsUp in the coming quarters. This strategic move aligns with the company’s ongoing efforts to optimize its investment in FoodsUp, while also preparing for potential transactions that may impact the company’s overall business structure.

Strategic Plans and Future Outlook

Argo is also advancing its plans to distribute proceeds from the sale of its interest in FoodsUp, offering its shareholders the option to receive net proceeds from the sale of the majority of its holdings in FoodsUp or an indirect interest in the platform. This planned distribution is subject to necessary approvals, including those from relevant exchanges, and is part of the company’s broader strategy to enhance shareholder value while streamlining its operations.

Argo Corporation’s multifaceted approach, which combines technological advancements with strategic investments in key sectors, continues to solidify its position in the market. The company's ongoing projects in transportation innovation, research, and development, as well as its involvement in FoodsUp Inc., reflect a broader vision of driving change across multiple industries. With a focus on delivering value through integrated solutions, Argo is positioning itself for continued success and growth in the coming years.