London, United Kingdom - Newsfile Corp. - January 13, 2025 - Gorilla Technology Group Inc. (NASDAQ: GRRR) ("Gorilla" or the "Company") CEO Jay Chandan responded to recent market concerns raised by shareholders following the stock's recent fluctuation and reiterated the Company's strong financial position and strategic priorities. The Company remains focused on delivering sustainable growth, building its robust pipeline and creating long-term value for shareholders. A Message to Our Valued Investors We appreciate the dedication and resilience of our shareholders who have supported Gorilla during both favourable times and challenging periods. We understand the frustration and concerns many of you may feel during this period of market volatility and assure you that your trust in us is well placed. Gorilla remains firmly committed to delivering results that reinforce the value of your investment and to maintaining transparent communication as we move forward. Update on Buyback Programme and Management Intention to Purchase Shares Over the weekend, we convened a meeting of the Company's board of directors to address the recent market activity. The board formally approved an increase to the programme from $6 million to $10 million, demonstrating our collective view that the Company's share price fails to reflect our intrinsic value and long-term potential and is undervalued compared to other companies in the market. As previously disclosed, $3.8 million of our previously announced allocation has been used to repurchase shares in privately negotiated transactions. We also previously announced that members of our board and management team intended to purchase shares in the Company so long as the disconnect between its share price and our business performance remains. The limitation we have experienced to date in negotiating private repurchases and a lack of announced insider share purchases are due to securities law restrictions applicable due to our possession of material non-public information regarding the Company. While we are continuing discussions with shareholders on private share repurchases, it is our intent to expand the buyback program to open-market purchases following our 2024 fiscal earnings release, when we hope to be able to disclose to the market all material information, including the status of project wins and bids. Likewise, our board and management team are looking forward to being able to purchase shares or enter into purchase plans when permitted by securities laws, and our commitment to moving to quarterly reporting in 2025 will facilitate both of these activities. Addressing Market Misinterpretations and Misrepresentations In light of the recent volatility, I believe it is crucial to address and clarify a few key misconceptions in the market:

1. Preferred Share Conversions and Warrant Exercises: On January 6, 2025, we announced the Company's updated share count of 18,464,651 shares outstanding following the conversion of all of our preferred shares and proceeds from exercises of a majority of the related warrants. These share conversions and warrant exercises relate to securities issued as part of financing arrangements in September 2023 and February and June 2024 and do not reflect any new equity issuance by the Company. These securities were already disclosed and known to the market and no additional dilution has occurred. These conversions happened solely at the discretion of the holders of the instruments and the Company had no control over them. The funds raised by the warrant exercises further bolstered our cash position to the current $47 million, and will help us finance new projects without requiring any dilutive transactions
2. Reliance on a Single Contract: We have observed claims that Gorilla is largely or wholly dependent on a single client. Such claims are entirely false. Our entry into our MENA contract was a defining moment for the Company, but we have since dramatically grown our pipeline and secured multiple additional contracts. Our transformative MENA project has helped underpin our ability to manage large-scale projects and, as previously disclosed, we are in active discussions on many additional opportunities and working with many leading partners. Our pipeline, which spans multiple sectors and regions, continues to grow and is designed to support sustained revenue growth throughout 2025 and well into 2026.
3. Gorilla's Cash Flow Conversion: We were alerted to an article released on Seeking Alpha regarding the Company's cash flow conversion. The article is based on incomplete information and misrepresents Gorilla's actual performance in this metric. The article cited data from our financials for the first half of 2024 and fails to reflect the inflow of cash received in July related to our MENA project (as noted in our August 26 press release and as will be better reflected in our audited financial statements for 2024). We have been continuing to meet...