Mr. Alex Baluta reports

FLOW CAPITAL ANNOUNCES Q1 2023 FINANCIAL RESULTS

Flow Capital Corp. has released its unaudited financial and operating results for the quarter ended March 31, 2023.

First quarter 2023 highlights:

• Royalty and loan revenue of $1.69-million, down 4.2 per cent year over year;
• Recurring revenue (1) of $1.51-million in Q1, up 5.6 per cent quarter over quarter;
• Adjusted recurring free cash flow (2) of approximately $299,000 in Q1 and $964,000 over the past four quarters;
• Total assets of approximately $59.2-million compared with $46.8-million at Q1 2022;
• Cash of over $10-million compared with $4.6-million at Q1 2022;
• Book value of $1.23 per share, up 50 per cent over the past four quarters.

"While our revenues were down slightly year over year, they were in line with our expectations. Slower-than-expected capital deployment, combined with several early repayments, has led to flat revenue growth," said Alex Baluta, chief executive officer of Flow Capital. "However, our balance sheet remains very strong with over $10-million in cash, and we continue to generate positive cash flow from recurring operations."

Flow Capital continues to focus its efforts on originating and investing in high-growth companies looking to fuel expansion without the excessive and expensive dilution of equity or restrictive covenants of conventional debt. With over 30 million small- and medium-sized business in the United States and Canada, and tens of millions of others in Flow Capital's addressable geographies and sectors, there is a large market of potential investment opportunities.

"In spite of the slow capital deployment, we continue to see a very strong pipeline in terms of quality of opportunities. The equity market volatility is generating a marked increase in demand for the type of creative and flexible capital provided by Flow. In fact, our qualified deal pipeline was at record levels in Q1, and we expect that several of the deals already in late-stage due diligence should close over the coming weeks," said Mr. Baluta.

Detailed financial results are available on its website or on SEDAR.

Conference call details

Flow Capital will host a conference call to discuss these results at 9 a.m. Eastern Time on Monday, May 29, 2023. Participants should call 1-888-886-7786 or 1-416-764-8658 and ask an operator for the Flow Capital earnings call, conference ID 16372857. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To listen to the replay, please dial 1-416-764-8692 or 1-877-674-7070 and enter passcode 372857 followed by the number sign. The replay recording will be available until 11:59 p.m. Eastern Time on June 12, 2023.

An audio recording of the conference call will also be available on the investors page of Flow Capital's website.

About Flow Capital Corp.

Flow Capital is a diversified alternative asset investor and adviser, specializing in providing minimally dilutive capital to emerging growth businesses.

(1) Excludes loan amortization revenue and one-time payments.

(2) Adjusted recurring free cash flow is an internally defined non-international financial reporting standard measure calculated as recurring revenues from interest and royalties, less recurring operating expenses less interest expenses.

We seek Safe Harbor.