Ladybug Resource Group Launches Strategic M&A Program Targeting AI-Powered Software Platforms

Ladybug Resource Group, Inc. (OTC: LBRG) announced today that it has formally initiated a strategic acquisition search to evaluate potential merger and acquisition (M&A) targets across the artificial intelligence (AI), enterprise SaaS, and specialized digital supply chain sectors. Following an extensive market screening process, the Company has identified a curated shortlist of prospective targets and commenced preliminary due diligence workstreams.

The initiative is structured to identify and evaluate high-margin, tech-enabled enterprise platforms capable of accelerating the Company's growth trajectory, expanding its recurring revenue base, and directly complementing its industrial automation and precision manufacturing ecosystem. Management believes that integrating an enterprise digital software platform with Ladybug's physical manufacturing base—anchored by its Guangzhou Jingdiao Automotive Equipment Manufacturing Co., Ltd. ("Jingdiao") division and strategic collaboration with Mino—creates powerful operational and financial synergies.

Through its initial M&A screening framework, Ladybug has identified a select shortlist of prospective targets possessing proprietary artificial intelligence capabilities, software-as-a-service (SaaS) revenue architectures, and established institutional distribution channels. Preliminary due diligence is currently underway to evaluate operational alignment, technical infrastructure, intellectual property ownership, customer retention metrics, and financial profiles. Core evaluation criteria include high-margin recurring revenue with scalable software subscription models and verified user retention; proprietary AI and workflow infrastructure with defensible intellectual property and algorithmic automation; institutional distribution footprints with established access to enterprise, health systems, or industrial channels; and integrated supply chain capabilities that bridge digital workflow intelligence with physical execution.

While Jingdiao and Mino execute large-scale physical automation, body-in-white (BIW) integration, and precision tooling for global automotive manufacturers, targeted software platforms bring real-time digital oversight, data traceability, and high-margin subscription economics. Layering proprietary digital capabilities onto Jingdiao's vertically integrated manufacturing infrastructure positions Ladybug to capture higher-margin enterprise opportunities and deliver comprehensive physical-plus-digital solutions across expanding global markets.

By evaluating target assets characterized by recurring software revenues and high gross margins, Ladybug seeks to further diversify its consolidated revenue profile. This initiative builds upon the Company's disciplined strategy to scale operations, optimize gross margins, and leverage its cash generation and liquidity to expand overall enterprise value. The Company emphasizes that its M&A initiative remains in the preliminary evaluation phase. While a target shortlist has been established and initial due diligence is active, conversations remain exploratory and casual. No definitive agreements, binding commitments, or Letters of Intent (LOI) have been executed at this time.

Ladybug intends to maintain rigorous financial, legal, and operational discipline throughout its due diligence process, ensuring that any prospective transaction is independently verified, accretively structured, and aligned with shareholder interests. There can be no assurance that current evaluations or exploratory discussions will result in an LOI, definitive agreement, or completed transaction.