An anonymous director reports

HOME CAPITAL ANNOUNCES RECEIPT OF FINAL REGULATORY APPROVALS AND EXPECTED CLOSING DATE FOR ACQUISITION BY SMITH FINANCIAL CORPORATION

The required regulatory approvals under the Bank Act (Canada) and Trust and Loan Companies Act (Canada) have been granted by the Federal Minister of Finance in respect of the previously announced acquisition of Home Capital Group Inc. by a wholly owned subsidiary of Smith Financial Corp. (SFC), and the arrangement is expected to be completed on Aug. 31, 2023, subject to the satisfaction of customary closing conditions.

Pursuant to the arrangement, SFC has agreed to acquire the issued and outstanding common shares of Home Capital that SFC does not already own for $44 in cash per share. Since the arrangement did not close on or prior to May 20, 2023, the purchase price will be increased by an amount equal to 0.273973 cent per share in cash per day up to and including the day prior to the closing of the arrangement (equivalent to approximately 25 cents per share for every three-month delay beyond May 20, 2023). Completion of the arrangement on Aug. 31, 2023, will result in a purchase price of $44.28 in cash per share.

Home Capital previously applied for and obtained an exemption from the Toronto Stock Exchange's requirement to hold its annual shareholder meeting by June 30, 2023, provided the meeting is held on or prior to Sept. 29, 2023. Since the arrangement is expected to be completed prior to Sept. 29, 2023, Home Capital will not hold its annual shareholder meeting. Similarly, as the arrangement will be completed prior to the close of business on Aug. 31, 2023, shareholders will not be paid on Sept. 15, 2023, the previously announced quarterly dividend of 15 cents per common share.

About Home Capital Group Inc.

Home Capital is a public company, traded on the Toronto Stock Exchange (symbol HCG), operating through its principal subsidiary, Home Trust Company. Home Trust Company is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending, and credit card services. In addition, Home Trust Company and its wholly owned subsidiary, Home Bank, offer deposits via brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Licensed to conduct business across Canada, Home Capital has offices in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.

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