Mr. Mukesh Sabharwal reports

ADVANTEX ANNOUNCES FISCAL 2023 THIRD QUARTER RESULTS

Advantex Marketing International Inc. has released its results for the three and nine months ended March 31, 2023.

The operational improvement of fiscal 2023 third quarter is not reflected at the level of loss before non-cash expenses due to the end of federal pandemic subsidies and the increase in interest costs. Corresponding periods in the previous fiscal year reflect significant federal pandemic subsidies. The stated interest costs during fiscal 2023 on: (1) a loan payable are higher primarily due to the increase of 300 basis points in the prime rate during fiscal 2023; and (2) 9 per cent non-convertible debentures payable reflect higher outstanding principal and interest on accrued and unpaid interest.

Non-cash expenses which are to do with 9 per cent non-convertible debentures saw an increase primarily in accretion charges, which also reflect the outcome of prescribed accounting connected to the January, 2023, capital raise by way of 9 per cent non-convertible debentures.

Advantex utilized a portion of the funds from the January, 2023, $600,000 capital raise, by way of 9 per cent non-convertible debentures payable, to bolster its merchant cash advance (MCA) portfolio, and this is reflected in improvement in revenues and in higher transaction credits (MCA receivables) on the balance sheet ($4,575,496 as at March 31, 2023, compared with $1,779,377 as at Dec. 31, 2022). Advantex closed a debenture placement of $400,000 in April, 2023. Using the additional capital, Advantex expects to continue its operational improvement and reflect it at the results before the non-cash expense level.

Additional financial information is provided in the attached table of this news release.

About Advantex Marketing International Inc.

Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.

Advantex shares trade on the Canadian Securities Exchange under the symbol ADX.

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