Ms. Nancy Tham reports

E SPLIT CORP. ANNOUNCES PREFERRED SHARE OFFERING

E Split Corp. is undertaking an overnight treasury offering of preferred shares. The sales period for this overnight offering will end at 9 a.m. ET on Tuesday, June 20, 2023. The offering is expected to close on or about June 27, 2023, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange.

The preferred shares will be offered at a price of $10 per preferred share to yield 7.3 per cent to maturity of June 30, 2028.

The company invests in common shares of Enbridge Inc., a North American oil and gas pipeline, gas processing, and natural gas distribution company.

The company received retraction notices from certain holders of preferred shares in connection with the non-concurrent retraction right on June 30, 2023. The company is offering preferred shares, in order to, to the extent possible, have a matched number of preferred shares and Class A shares of the company outstanding following the non-concurrent retraction and secure term financing for the Class A shareholders for the next five-year term ending on June 30, 2028. Class A shareholders enjoy the opportunity for enhanced capital appreciation because of the leverage provided by the preferred shares.

Based on the most recently calculated net asset value per unit of the company on June 19, 2023, and taking effect of retraction, the preferred shares have downside protection from a decline in the value of the company's portfolio of approximately 60.2 per cent. The preferred shares have a DBRS rating of Pfd-3(high), which was confirmed by DBRS on June 6, 2023.

The company's investment objectives for the:

• Class A shares are to provide holders with:
  • Non-cumulative monthly cash distributions;
  • The opportunity for capital appreciation through exposure to the portfolio;
• Preferred shares are to:
  • Provide holders with fixed cumulative preferential quarterly cash distributions;
  • Return the original issue price of $10 to holders upon maturity.

Middlefield Capital Corp. provides investment management advice to the company.

The syndicate of agents for the offering is being co-led by CIBC Capital Markets, RBC Capital Markets and Bank of Nova Scotia.

For further information, please visit Middlefield Capital's website or contact Nancy Tham in the sales and marketing department at 1-888-890-1868.

A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The company intends to file a supplement to the short form base shelf prospectus, and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces of Canada.