Mr. Maury Marks reports

QUORUM ANNOUNCES EARLY DEBT PAY DOWN OF $1.6 MILLION OF BDC CAPITAL FACILITY

Quorum Information Technologies Inc. has made a prepayment of $1.6-million in principal and interest on its BDC Capital Inc. loan facility.

The BDC Capital Facility was obtained in 2019 to finance the 2018 purchase of DealerMine and the 2022 purchase of Accessible Accessories. The Facility was restructured in 2022, which included replacing the original Facility with a Mezzanine loan and a Cash Flow loan. The Mezzanine loan has a floating cash interest rate of 10.15% per annum and an additional accrued interest of 2.65% that is due and payable on August 15, 2027, the date of maturity. The Cash Flow loan has a floating cash interest rate of 9.80% per annum with principal payments commencing August 15, 2024 and a maturity date of August 15, 2027.

As a result of the prepayment, the Company reduced the outstanding principal amount under the BDC Capital Facility by $1.5 million from $11.6 million to $10.1 million, resulting in $0.2 million in annual interest expense savings. The debt prepayment was funded with excess cash on hand. Quorum continues to have access to $4.0 million in additional funding through the BDC Capital Facility for potential future acquisitions.

"We are pleased to pay down a portion of the BDC Capital Facility early," stated Maury Marks, President and CEO of Quorum. "Following the second quarter where we reported Adjusted EBITDA1 of $1.7 million and a cash balance of $4.9 million, Quorum is in a strong financial position to continue the process of paying down the BDC Capital Facility."

About Quorum Information Technologies Inc.

Quorum is a North American SaaS Software and Services company providing essential enterprise solutions that automotive dealerships and Original Equipment Manufacturers ("OEMs") rely on for their operations, including:

Quorum's Dealership Management System (DMS) , which automates, integrates, and streamlines key processes across departments in a dealership, and emphasizes revenue generation and customer satisfaction. DealerMine CRM , a sales and service Customer Relationship Management ("CRM") system and set of Business Development Centre services that drives revenue into the critical sales and service departments in a dealership. Autovance , a modern retailing platform that helps dealerships attract more business through Digital Retailing, improve in-store profits and closing rates through its desking tool and maximize their efficiency and CSI through Autovance's F&I menu solution. Accessible Accessories, a digital retailing platform that allows franchised dealerships to efficiently increase their vehicle accessories revenue. VINN Automotive , a premier automotive marketplace that streamlines the vehicle research and purchase process for vehicle shoppers while helping retailers sell more efficiently.

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