An anonymous director reports

TSX APPROVES ECN CAPITAL'S NORMAL COURSE ISSUER BIDS FOR COMMON SHARES AND SERIES C PREFERRED SHARES

The Toronto Stock Exchange has approved ECN Capital Corp.'s notice of intention to commence a normal course issuer bid for common shares of the company and a normal course issuer bid for the company's cumulative five-year minimum rate reset preferred shares, Series C.

Pursuant to the bids, the company may repurchase on the open market (or as otherwise permitted) up to 6,329,034 common shares and 371,240 Series C preferred shares, representing approximately 5 per cent and 10 per cent of the public float of each of the common shares and the Series C preferred shares (within the meaning of the rules of the TSX), respectively, subject to the normal terms and limitations of such bids. ECN Capital may purchase its common shares and Series C preferred shares at its discretion during the period commencing on Sept. 21, 2023, and ending on the earlier of Sept. 20, 2024, and the completion of purchases under the applicable bid.

Under the TSX rules, during the six months ended Aug. 31, 2023, the average daily trading volume on the TSX of the common shares and Series C preferred shares was 990,901 and 2,530, respectively, and, accordingly, daily purchases on the TSX pursuant to the bids will be limited to 247,725 common shares and 1,000 Series C preferred shares, other than purchases made pursuant to the block purchase exception. The actual number of common shares and Series C preferred shares that may be purchased pursuant to the bids and the timing of any such purchases will be determined by ECN Capital, subject to applicable law and the rules of the TSX. As of Sept. 8, 2023, the company had 245,779,995 common shares and 3,712,400 Series C preferred shares issued and outstanding, and a public float of 126,580,686 common shares and 3,712,400 Series C preferred shares.

Purchases pursuant to the bids are expected to be made through the facilities of the TSX or such other permitted means (including through alternative trading systems in Canada), at prevailing market prices or as otherwise permitted. The bids will be financed using existing cash resources and any common shares and Series C preferred shares repurchased by the company under the bids will be cancelled.

The company believes that the bids are in the best interests of the company and constitute a desirable use of its funds.

Pursuant to previous notices of intention to conduct normal course issuer bids, under which the company sought and received approval of the TSX to purchase 22,170,050 common shares and 371,040 Series C preferred shares, which commenced on Sept. 19, 2022, and expires Sept. 18, 2023, no common shares and no Series C preferred shares were repurchased by the company on the open market.

The company has also entered into new automatic share purchase plans with designated brokers in order to facilitate repurchases of its outstanding common shares and Series C preferred shares. The plans have been approved by the TSX and will be implemented effective as of Sept. 21, 2023.

Under the plans, the company's brokers may purchase common shares or Series C preferred shares under the bids at times when the company would ordinarily not be permitted to, due to its regular self-imposed quarterly blackout periods. Before the commencement of any particular internal trading blackout period, the company may, but is not required to, instruct its brokers to make purchases of common shares or Series C preferred shares under the bids during the ensuing blackout period in accordance with the terms of the plans. Such purchases will be determined by the applicable broker in its sole discretion based on parameters established by the company prior to commencement of the applicable blackout period in accordance with the terms of the applicable plan and applicable TSX rules. Outside of these blackout periods, common shares and Series C preferred shares will continue to be purchasable by the company at its discretion under its bids. Each plan will terminate on the earliest of the date on which: (a) the purchase limit specified in the plan has been reached; (b) the purchase limit under the applicable Bid has been reached; (c) the company terminates the plan in accordance with its terms, in which case the company will issue a news release confirming such termination; and (d) the applicable bid terminates.

About ECN Capital Corp.

With managed assets of $4.8-billion (U.S.), ECN Capital is a leading provider of business services to North American based banks, credit unions, life insurance companies, pension funds and institutional investors. ECN Capital originates, manages and advises on credit assets on behalf of its partners, specifically consumer (manufactured housing, and recreational vehicle and marine) loans and commercial (inventory finance or floor plan) loans. The company's partners are seeking high-quality assets to match with their deposits, term insurance or other liabilities. These services are offered through two operating segments: (i) manufactured housing finance; and (ii) recreational vehicles and marine finance.

We seek Safe Harbor.