Mr. Andrew Abouchar reports

MONTFORT CAPITAL ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Montfort Capital Corp. has released its financial results for the second quarter ended June 30, 2023.

Second quarter 2023 highlights

For the three months ended June 30, 2023, the company had the following highlights:

• Total revenue of $13.3-million, an increase of $8.0-million or 153 per cent from $5.3-million in the three months ended June 30, 2022;
• Interest income was $9.9-million, an increase of $6.1-million or 163 per cent from $3.7-million in the prior-year period;
• Income from transaction and other fees was $3.2-million, an increase of 403 per cent from $600,000 in the prior-year period;
• A net loss of $1.1-million or two cent loss per common share compared with net income of $1.4-million or one cent loss per common share in the prior-year period, due mainly to a change in accounting for TIMIA LPs plus increases in expenses, including interest and financing fee costs and foreign exchange unrealized losses;
• Total assets of $470.3-million as at June 30, 2023, compared with $462.5-million at Dec. 31, 2022. Cash balance, as part of assets, was $11.4-million compared with $7.0-million as at Dec. 31, 2022;
• Montfort's loan investment portfolio (loans receivable) decreased to $378.3-million in the second quarter 2023 compared with $380.7-million as of Dec. 31, 2022;
• Adjusted net income (loss) (a non-GAAP (generally accepted accounting principal) measure) attributable to shareholders and adjusted net income (loss) per common share attributable to shareholders (a non-GAAP measure) were a loss of $300,000 and one-cent loss per share in the three months ending June 30, 2023, compared with adjusted net income attributable to shareholders of $1.1-million and two cents per share in the prior-year period.

On a comprehensive basis:

• Reported net comprehensive loss of $1.1-million for the three months ended June 30, 2023, compared with net comprehensive income of $2.4-million for the three months ending June 30, 2022.

"Our results reflect the successful expansion of our private credit business model as we continue to drive operating efficiencies throughout the organization," said Andrew Abouchar, interim chief executive officer of Montfort Capital. "We have successfully integrated our business segments under the Montfort umbrella and built the base from which we can leverage and support our continued growth. On June 29 and July 4, 2023, we announced a combined $165-million of additional capital to our assets under management and administration, significantly increasing our existing loan capacity, and we are well positioned to take advantage of a private credit environment that is ripe with opportunities."

Detailed financial review

The company utilizes a proprietary loan origination platform to originate, underwrite and service private market, high-yield loan opportunities through its operating divisions:

• TIMIA Capital, a technology lending platform that offers revenue-based investment to fast growing, business-to-business software-as-a-service (or SaaS) businesses in North America;
• Pivot Financial which specializes in asset-backed private credit targeting mid-market borrowers in Canada;
• Brightpath Capital, one of Canada's leading private providers of residential mortgages;
• Langhaus Financial provides insurance policy-backed lending solutions to high-net-worth individuals and entrepreneurs in Canada.

Montfort's overall assets under management and administration (AUMA) includes assets under management plus loans managed on behalf of third parties. Montfort's overall AUMA, as at June 30, 2023, was $471-million compared with $490-million in overall AUMA as at Dec. 31, 2022. Total assets were $470.3-million as at June 30, 2023, compared with $462.5-million as at Dec. 31, 2022.

The company divides its private credit business into two distinct segments: consumer lending made up of Brightpath and Langhaus, and corporate lending which includes TIMIA Capital and Pivot Financial.

Consumer lending

Brightpath's consumer lending loan portfolio includes a portfolio of over 600 mortgages. Mortgages are secured by residential property, located mainly in Ontario, and have a maturity of one year or less.

Langhaus is primarily involved in providing loans to entrepreneurs that are ensuring their personal and corporate affairs are optimally structured to allow for planning opportunities that generate more after-tax liquidity.

The consumer lending segment reported over $344-million AUMA as at June 30, 2023.

Corporate lending

TIMIA targets companies seeking capital primarily in the following three subsectors: software-as-a-service (SaaS), software-enabled service companies and hardware-enabled service companies. The company is able to efficiently originate transactions, automate aspects of the underwriting process as well as manage the loan portfolio and investors on a continuing basis.

Pivot addresses the borrowing needs of small to mid-sized enterprises in Canada with bespoke term debt structures, bridge loans, asset-based revolving loan facilities and accounts receivable factoring facilities. Pivot portfolio companies typically have one to 100 employees and $1-million to $100-million in revenue.

Corporate lending segment reported $127-million of AUMA as at June 30, 2023.

This news release is qualified in its entirety by the company's financial statements for the three months ended June 30, 2023, and 2022, and the associated management's discussion and analysis respecting the same periods, which can be downloaded from the company's profile on SEDAR+.

About Montfort Capital Corp.

Montfort manages a diversified family 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.

We seek Safe Harbor.