Mr. Alex Baluta reports

FLOW CAPITAL ANNOUNCES 2023 ANNUAL AUDITED FINANCIAL RESULTS

Flow Capital Corp. has released its audited financial and operating results for the three months (Q4 2023) and year ended Dec. 31, 2023.

Q4 2023 performance highlights

• $1.65-million in recurring loan interest and royalty income in Q4 2023, up 15.2 per cent from Q4 2022. The $1.65-million of recurring revenue represents the highest recurring revenue that Flow has achieved in the past six years;
• $300,000 in recurring free cash flow in Q4 2023; and $1-million over the last four quarters;
• $63.6-million in total assets compared to $58.7-million at Q4 2022;
• $10-million in two loan maturities in 2023 and early 2024;
• $5.2-million in cash, compared with $9.6-million at Q4 2022.

"Q4 2023 wrapped up what was a strong second half of 2023 in terms of deployment of capital. During the second half of 2023, we closed $12.8-million in new investments into five companies. The recurring interest revenue generated from these new investments contributed to the record recurring revenue of $1.65-million that we reported in the quarter," said Alex Baluta, chief executive officer of Flow Capital.

"The deployment strength we saw in the second half of 2023 has continued into 2024, with an additional $9.5-million deployed into three investments so far this year. We also had two loans mature in 2023 and early 2024 returning approximately $10-million in cash. Notably, the IRR on one of the loans was 21.6 per cent and on the second was 36.2 per cent," continued Mr. Baluta.

"As an additional highlight during the year, we were excited about the introduction of the new debenture structure in July. By providing investors with a floating rate of interest (currently at 10.5 per cent), redeemability and seniority to almost $38-million in equity, we expect we can use it to raise additional capital over time," said Mr. Baluta. "We expect this structure will help us grow our asset base for the foreseeable future."

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.

Detailed financial results are available on the company's website or on SEDAR+.

Recurring loan interest and royalty income is an internally defined, non-IFRS (international financial reporting standards) measure calculated as loan interest and royalty income less loan amortization income and one-time payments (for example, prepayment fees).

Conference call details

Flow Capital will host a conference call to discuss these results at 9 a.m. Eastern Time, on Tuesday, April 30, 2024. Participants should call 1-800-717-1738 or 1-289-514-5100, and ask an operator for the Flow Capital earnings call, conference ID 65275. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial 1-888-660-6264 or 1-289-819-1325 and enter pass code 65275 followed by the pound key.

An audio recording of the conference call will be also 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.

We seek Safe Harbor.