Mr. Johnson Joseph reports

TENET FINTECH REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

Tenet Fintech Group Inc. has released its financial results and operating highlights for the three-month and six-month periods ended June 30, 2023, and June 30, 2022. A disruption at the company's executive management level during about two-thirds of the second quarter resulted in limited business development and operational progress for the company in both China and Canada. Tenet generated $16.7-million in revenue and had a net loss of $6.4-million for the period. All amounts expressed are in Canadian dollars.

Q2 financial highlights:

• Total revenue of $16.8-million;
• EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of negative $3.9-million;
• Net loss of $6.4-million.

(1) EBITDA is a non-IFRS (international financial reporting standards) financial measure provided to assist readers in determining the company's ability to generate cash flows from operations and to cover finance charges. It is also widely used for business valuation purposes. This measure does not have a standardized meaning prescribed by IFRS and may not be comparable with similar measures presented by other companies.

EBITDA equals the results before income taxes, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, and amortization of financing issuance costs and finance costs, as defined in note No. 18.4 of the unaudited condensed interim consolidated financial statements for the three-month and six-month periods ended June 30, 2023.

Second quarter financial and operating results summary

The company's operations in both China and Canada were significantly impacted by a disruption in its executive management team during the second quarter of 2023. The development and completion of the networking, advertising and insights pillars needed to finalize the company's Cubeler business hub in Canada was halted for much of the quarter, as well as most of the work related to the development of the company's first data-driven products through its Tenoris3 subsidiary. Meanwhile in China, the company's plans to start new projects aimed primarily at servicing and gathering data on a wider spectrum of the Chinese economy were also put on hold until the situation at its executive management level could be resolved.

The limited progress made by the company in Canada during the quarter was in its continued discussions with business associations and software vendors connected with large numbers of small- and medium-sized businesses for potential strategic partnerships that could considerably accelerate the rate at which Canadian SMEs (small and medium-sized enterprises) register to become members of the Cubeler business hub. And while industrial diversification in China was put on pause during the quarter, the level of activity in the industrial sectors already being serviced by the company began to rebound during the quarter following successive quarters of declining activity due to COVID-19 restrictions in the country.

In summary, the company generated revenue of $16,776,714 for the three-month period and $26,270,518 for the six-month period ended June 30, 2023, compared with $32,432,228 for the three-month period and $67,173,688 for the six-month period ended June 30, 2022.

Total expenses before taxes for the quarter amounted to $23,283,128, compared with $37,511,624 for the same period in 2022. Net loss for the second quarter of 2023 was $6,453,557, compared with a net loss of $6,332,672 for the same period in 2022.

Full details of the company's second quarter 2023 financial results can be found in the unaudited condensed interim consolidated financial statements and management's discussion and analysis (MD&A) for the three-month and six-month periods ended June 30, 2023, and June 30, 2022, which are available on SEDAR+.

Tenet will host a conference call on Wednesday, Aug. 30, 2023, at 9 a.m. EDT, where president and chief executive officer Johnson Joseph and chief financial officer Jean Landreville will discuss the Q2 2023 financial results. Registration for the event is available on-line.

About Tenet Fintech Group Inc.

Tenet Fintech is the parent company of a group of innovative financial technology (fintech) and artificial intelligence (AI) companies. All references to Tenet in this news release, unless explicitly specified, include Tenet and all its subsidiaries. Tenet's subsidiaries provide various analytics and AI-based services to businesses and financial institutions through the Cubeler business hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B (business-to-business) transactions among its members.

We seek Safe Harbor.