SETO Holdings, Inc. Advances Vertical Integration as Subsidiary CapCity Beverage Establishes Dedicated Tequila Production Infrastructure

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Strategic maquila agreement with Casa Armero enables scalable private label expansion, improved margin visibility, and long-term global growth in the agave spirits category

JALISCO, MX / ACCESS Newswire / April 16, 2026 / Seto Holdings, Inc (OTCID:SETO) ("SETO" or the "Company"), a publicly traded, vertically integrated total beverage platform, today announced that its wholly owned subsidiary, CapCity Beverage, LLC ("CapCity"), has established dedicated tequila production infrastructure through a long-term maquila and supply agreement with Casa Armero, a recently renovated and expanded, Jalisco-based tequila distillery, operating under NOM 1498.

The agreement comes as the global tequila and agave spirits category continues to demonstrate strong growth, driven by evolving consumer demand and expanding adoption across both domestic and international markets. The category remains one of the fastest-growing segments in beverage alcohol, with sustained momentum in the United States and increasing traction in select international markets.

CapCity Execution Driving Platform Expansion

The agreement establishes a production relationship that enables CapCity to develop and scale private label, retailer-exclusive, and proprietary tequila programs across the United States.

Through this partnership, CapCity enhances its ability to:

• Expand tequila offerings across Blanco, Reposado, Cristalino, and Añejo expressions

• Deliver retailer-exclusive and private label programs at scale

• Maintain quality consistency through defined production standards

• Support reliable supply aligned with commercial growth initiatives

"This is a strategic step in continuing to build operating infrastructure within a regulated category," said Janon Costley, Chief Executive Officer of SETO Holdings, Inc.

"The agave spirits category continues to show strong, sustained growth across key markets. By establishing dedicated production infrastructure, we are strengthening our ability to align supply with demand, support large-scale retail programs, and improve visibility across our cost structure. This positions CapCity-and the broader SETO platform-to participate more effectively in the continued expansion of the category, both in the United States and in select international markets."

Private Label Platform Expansion

CapCity's private label platform provides:

• End-to-end development, including liquid creation, compliance, packaging, and logistics

• Production aligned with category positioning and market demand

• Integrated go-to-market execution through CapCity's import, distribution, and sales network

The partnership is structured to support large-format retail programs, including national and regional partners seeking differentiated tequila offerings.

Platform-Level Benefits for SETO

At the SETO level, the agreement enhances the Company's vertically integrated operating model by expanding production alignment within the agave spirits category.

The relationship supports:

• Increased alignment across production inputs and product quality

• Expanded private label and retailer-driven program capabilities

• Improved visibility into cost structure and operational planning

• The ability to support both owned brands and third-party partnerships

By leveraging CapCity's importation, compliance, and distribution infrastructure, SETO continues to build scalable operating capabilities across the beverage value chain.

Commercial Alignment and Growth Strategy

The agreement establishes a framework for long-term commercial alignment, supporting scalable growth across CapCity's private label platform and broader retail initiatives.

The partnership is designed to:

• Support expanding retailer-exclusive and private label programs

• Enable scalable production aligned to market demand

• Strengthen coordination across supply chain and commercial execution

In addition to supporting its own portfolio and brand partners, CapCity expects to deploy these capabilities across ongoing discussions with national and regional retail partners, as well as select international markets.

About Casa Armero

Casa Armero is a tequila producer based in EL Arenal - Jalisco, Mexico, operating under NOM 1498 certification and specializing in distillation, aging, and private label production for domestic and international markets.

About CapCity Beverage

CapCity Beverage is a federally licensed importer and multi-state distribution platform focused on premium spirits, private label development, and vertically integrated supply chain execution. As a subsidiary of SETO Holdings, Inc., CapCity supports both owned and partner brands across on-premise, off-premise, and direct-to-consumer channels.

About Seto Holdings

SETO Holdings, Inc. is a publicly traded (OTCID:SETO), vertically integrated total beverage platform redefining the future of premium beverages through cultural relevance, vertical integration, and digital innovation. Guided by its mission to "Own the Spirit", SETO merges production, distribution, marketing, technology, and capital markets into a unified engine for scalable brand growth for under-valued companies, brands and founders. At its core, SETO is committed to providing resources, infrastructure, and market access designed to accelerate growth and create lasting value for founders, consumers, and shareholders.

Forward-Looking Statements

Statements in this news release may be "forward-looking statements." Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not-guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and the company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

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