Mr. Andrew Abouchar reports

MONTFORT CAPITAL ANNOUNCES A $65 MILLION LOAN CAPACITY INCREASE FOR INSURANCE LENDING SUBSIDIARY LANGHAUS FINANCIAL AND THE CREATION OF SERIES 1 CLASS C PREFERRED SHARES

Montfort Capital Corp.'s insurance lending subsidiary, Langhaus Financial Partners Inc., has increased its bank financing capacity by $65-million. Additionally, Montfort has launched its Series 1 Class C preferred shares for the conversion of $12.5-million of Langhaus Class A preferred shares. Langhaus is the leading non-bank provider of life-insurance-backed lending solutions to high-net-worth individuals and entrepreneurs in Canada. This expansion is a strategic move to support the rapid growth of Langhaus's insurance lending business.

"The additional capacity comes at a highly opportune time for our insurance lending business," said Cory Bast, chief operating officer of Langhaus Financial. "We continue to see growth in demand for our insurance-policy-backed lending solutions, and this increase in funding will enable us to expand our business and support Canadian advisers and their clients. The share conversion is also an endorsement of the Montfort business model leveraging its expertise in private credit across many verticals, including technology, small and medium-sized businesses, real estate, and our insurance lending solutions."

Creation of Series 1 Class C preferred shares

On July 1, 2023, the board of directors of the company resolved to create the Series 1 Class C preferred shares to facilitate the share exchange with the preferred shareholders of Langhaus Financial. Under the terms of the Series 1 shares, holders of the Series 1 shares are entitled to a non-cumulative annual dividend rate equal to the yield on the Canadian-dollar-denominated non-callable government of Canada bond with a two-year maturity (Canadian 2YR yield) plus 5.0 per cent, payable quarterly if and when such dividend is declared by the company. Under the terms of the Series 1 shares, if the actual Canadian 2YR yield is less than 1.00 per cent, the Canadian 2YR yield will be deemed to be 1.00 per cent for the purposes of the dividend rate, and, if the actual Canadian 2YR yield is greater than 7.00 per cent, the Canadian 2YR yield will be deemed to be 7.00 per cent for the purposes of calculating the dividend rate. The dividend rate will be calculated on the last day of the previous quarter in which a dividend is payable. The company expects the first dividend on the Series 1 shares to be payable on Oct. 1, 2023.

The Series 1 shares are also redeemable by the company at $25 per Series 1 share and rank subordinate to the Class A and Class B preferred shares upon liquidation, dissolution or winding up of the company or other distributions of assets among shareholders for the purposes of winding-up affairs.

Please refer to the full terms and conditions of the Series 1 shares included in the articles of the company and posted to the company's SEDAR profile.

Closing of preferred share exchange with Langhaus shareholders

The company has closed share exchange agreements with all holders of each series of the Class A preferred shares in Langhaus Financial. Under the terms of the share exchanges, the Langhaus Financial shareholders collectively agreed to exchange all 1,247,000 issued and outstanding Langhaus Financial shares for 498,800 Series 1 shares. The Langhaus Financial shares were acquired by the company at $10 per Langhaus Financial share.

In connection with the share exchange, the company has also entered into arrangements with certain holders of Series 1 shares regarding the future potential redemption of their Series 1 shares.

As a leading non-bank provider of insurance-policy-backed lending solutions, Langhaus collaborates closely with major insurance companies and top advisers in Canada. The expertise of the Langhaus team lies in designing flexible lending programs tailored to borrowers' specific requirements. Its proficiency extends to structured finance transactions and complex borrower structures, which often fall beyond the scope of traditional Canadian banks.

The significant increase in lending capacity reinforces Langhaus's position as the leader in the insurance-policy-backed lending market, delivering exceptional financial solutions to its valued clientele across Canada.

About Montfort Capital Corp.

Montfort manages a diversified group of specialized private credit brands that utilize focused strategies and experienced management teams combined with advanced technology to improve fee-related performance. Montfort facilitates transparency for all of its investors through public company reporting.

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