Mr. John Richardson from Best Funds reports

TIER ONE CAPITAL LIMITED PARTNERSHIP ANNOUNCES CHANGE IN VALUATION OF A PORTFOLIO COMPANY

Tier One Capital LP has adjusted the valuation of its holdings in its portfolio company, Intelligent Mechatronic Systems Inc., including its subsidiaries, following the approval of the vesting and distribution order by the Ontario Superior Court of Justice and the closing of the sale of the assets of the company on Dec. 14, 2018. The court approved, among other things, a transaction for the sale of substantially all of the company's assets to Trak Global Group Ltd., the vesting in Trak Global of all the company's right, title and interest in the assets of the company and the delivery of shares in Trak Global to the senior lenders to the company, which include Tier One.

Tier One estimates that the change in value of the company upon the distribution of the consideration shares results in a decrease of approximately 64 cents per Tier One LP unit. The costs incurred by Tier One to affect the sale process and receivership has resulted in a cost of approximately 45 cents per Tier One LP unit.

Despite the adjustment to the valuation of the company and the impact on the total assets of Tier One as a result of the transaction, management of Tier One and the board of directors of T1 General Partner Corp., the general partner of T1 General Partner LP, the general partner of Tier One believe that, going forward, the sale of the assets of the company was the best course for the business of the company. Under Trak Global, it is anticipated that the company will be rationalized, and the operations will be supported with appropriate financing.

Trak Global operates a similar business in Europe, creating results-driven telematics solutions for the insurance, fleet, rental and automotive industries since 2009. Since the company operates extensively in North America, the resulting transaction represents ownership in a global telematics corporation with world-class technology. Management believes that there will be synergies through the combination of the company and Trak Global, which will be reflected through an increase in the value of the consideration shares going forward.

All amounts presented are unaudited as of the date hereof and represent estimations based on information made available to Tier One. The final valuation adjustments are subject to continuing review and approval by the board. The audited financial statements of Tier One for the year ended Dec. 31, 2018, will be made available on Tier One's SEDAR profile.

About Tier One Capital LP

Tier One is a listed innovative specialty finance LP committed to providing limited partners with access to attractive yields. The company's primary objective is to provide a return on investment and regular cash distributions.

We seek Safe Harbor.