Sirius XM Canada Holdings Inc., parent of Sirius XM Canada Inc., announced today that it has received a demand for payment from Sirius XM Radio Inc. (“Sirius XM US”). The demand is for an additional US$33.9 million as “activation fees” under the XM Licence Agreement owed from 2024 to the end of January, 2024. Sirius XM US has also made a demand for its methodology to be used for calculating “activation fees” from February, 2024 onwards for the remainder of the current term of the XM Licence Agreement.

As previously disclosed, the Company and Sirius XM US have not agreed on the “activation fees” owed under the XM Licence Agreement. The Company is confident in its interpretation of the XM Licence Agreement and the calculation of the “activation fees” thereunder, and intends to seek resolution of this matter through binding arbitration under the terms of the XM Licence Agreement.