Railtown AI Technologies Announces MOU to Acquire AI Partnerships Corp

Vancouver, British Columbia - Newsfile Corp. - February 11, 2025 - Railtown AI Technologies Inc. (CSE: RAIL) (OTCQB: RLAIF) ("Railtown AI'', "Railtown" or the "Company") is pleased to announce it has executed an MOU for the acquisition of AI Partnerships Corp.

("AIP"). (the "Acquisition Transaction" or "Transaction" or "Acquisition"), a Toronto-based company that has established an Affiliate network of over 160, primarily North American, AI-SaaS companies that provide AI-based vertical market solutions and AI development and management tools. The acquisition will create a dynamic organization that drives substantial revenue growth and scales enterprise AI solutions worldwide.

AIP's Affiliate network operates in 13 countries and delivers AI-based solutions to a diverse client base across multiple industries, including fintech, healthcare, manufacturing, and supply chain management as well as sector agnostic applications and AI development and management tools.

The combination of Railtown AI and AIP is expected to provide both organizations with an opportunity to leverage Railtown AI's Conductr product as a platform of choice for AI application development by AIP's current and future Affiliates and their end-users.

One of the fundamental objectives in the establishment of AIP's Affiliate network was to allow AIP to identify and acquire the best Affiliates as part of a broader strategic roll-up strategy. The transaction is expected to provide the resulting entity the benefit of a public company structure with access to capital markets as it executes its Affiliate acquisition strategy. AIP's established Affiliate network provides a significant opportunity to grow recurring revenue streams through Affiliate acquisitions, which could be enhanced by deploying Railtown AI's proprietary technologies across the Affiliate network and its customers.

Key drivers of revenue growth include:

• Affiliate Acquisitions: The company plans to acquire select high-performing Affiliates, and as a result of combining their product offerings will provide a rich suite of vertical market AI-based applications and development tools in order to meet the needs of enterprise clients.
  
• Platform Integration: Railtown AI's Conductr platform could streamline AI development for Affiliates and their enterprise clients, increasing both adoption and productivity.
  
• Expanded Partnerships: With relationships already in place with major technology partners, including MILA, Amii, Microsoft, NVIDIA, AMD, and UBC, the company will continue to leverage these partnerships to accelerate enterprise sales and product innovation.
  
• Recurring Enterprise Revenue: The integration of AI-based vertical market applications along with AI development and management tools and services across the Affiliate network is anticipated to drive strong recurring revenue growth from long-term enterprise contracts.
  

"This acquisition represents a transformative moment for both Railtown AI and AI Partnerships Corp. By combining our Conductr platform with AIP's extensive Affiliate network and enterprise partnerships, we are creating a powerhouse that will drive significant revenue growth and deliver innovative AI solutions to businesses worldwide. The opportunities ahead are immense-we're poised to expand our reach, scale enterprise sales, and accelerate innovation across industries. Together, we'll shape the future of AI in ways that unlock long-term value for our shareholders, customers, and partners," said Cory Brandolini, CEO of Railtown AI Technologies.

"From its inception, AIP set out to assemble the largest network of AI solutions organizations that provide a diverse package of AI solutions, that meet the needs of enterprises in industry sectors that realize significant ROI from the adoption of AI-based application solutions. We found Railtown's Conductr had broad deployment relevance across the entirety of our network. With the combination of Railtown and AIP, we are excited to actualize our public market vision as we seek to commence with an aggressive targeted Affiliate acquisition mandate upon the conclusion of this exciting transaction," stated Dr. Tom Corr, CEO of AI Partnerships Corp.

To facilitate the acquisition transaction, Canaccord Genuity Corp. has been engaged as exclusive financial advisor and lead agent to the Company in connection with the acquisition transaction and any concurrent financing.

Both companies are working toward finalizing a Letter of Intent (the "LOI") to formalize the acquisition in the coming weeks.

The acquisition is expected to position the company to capitalize on the rapidly expanding demand for AI solutions in key sectors. The ability to provide enterprise clients with a fully integrated suite of AI tools and services-ranging from SaaS applications to advanced development platforms-gives the organization a strong competitive advantage in both domestic and international markets.

The leadership teams of Railtown AI and AIP are aligned in their vision to create long-term value through technology innovation and enterprise revenue growth.

For more information on the executive leadership teams, please visit:

• AI Partnerships Corp. Team: https://www.aipartnershipscorp.com/aip-team
• Railtown AI Technologies Team: https://railtownaitechnologies.com/team/

About AI Partnerships Corporation
AI Partnerships Corp. was formed in 2020 with the goal of establishing a world-wide Affiliate network of AI-as-a-Service based companies that are focused on providing AI-based solutions in a select number of sectors. These sectors include healthcare, manufacturing, supply chain and fintech, as well as sector agnostic AI development tools and applications. We have established a network of over 160 SaaS-based AI Affiliates, primarily headquartered in Canada and the US, who have offices in 13 countries world-wide.

The Affiliate network consists primarily of companies that are non-competitive with each other and who work together to cross-sell to each other clients and to jointly pursue new sales opportunities. By establishing and working with the Affiliate network, AI Partnerships has been able to identify the best Affiliate candidates to potentially be acquired by AI Partnerships.

Follow us on social media:

• Twitter: https://x.com/AIPartnerships
• LinkedIn: https://www.linkedin.com/company/aipartnershipscorp/

About Railtown AI Technologies
Railtown AI, a Microsoft Partner, has developed a cloud-based Application General Intelligence™ Platform called Conductr. Artificial intelligence and automation that perform tasks and streamline, enhance, and accelerate Developer Productivity Engineering (DPE) through Speed, Quality, Automation, and Best Practices are the cornerstones and foundation of the Conductr platform.

We purposely built the Conductr platform to help Software Companies and Software Developers save time on redundant tasks, improve productivity, drive down costs, and accelerate developer velocity. Railtown's proprietary AI technology, designed to enable our clients to be more productive and profitable, is accessible on Microsoft's Azure Marketplace.

Follow us on social media:

• Twitter: https://twitter.com/railtown_ai
• LinkedIn: https://www.linkedin.com/company/railtown-ai/

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ON BEHALF OF THE BOARD
"Cory Brandolini"
Cory Brandolini, Chief Executive Officer

INVESTOR CONTACT
Rebecca Kerswell
Investor Relations
Email: investors@railtown.ai
Phone: 1-(604)-417-4440

This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will," "may", "should", "intends", "anticipates", "expects" and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are risks detailed from time to time in the filings made by the Company with securities regulators.

Forward-looking statements included or incorporated by reference in this document include statements with respect to:

• the Company's acquisition, including acquisition criteria and acquisition benefits;
• the Company's goal to grow revenues through the acquisitions;
• expectations regarding the ability to raise capital in conjunction with the acquisition;

Specifically, there is material risk that the acquisition may not close and/or the Company may not be able to raise capital necessary to complete the acquisition referred to herein.

Readers are cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the Company cannot guarantee that any forward-looking statement will materialize, and readers should not place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

The issuer is solely responsible for the content of this announcement.