Mr. Joseph Nakhla reports

TRIBE PROPERTY TECHNOLOGIES COMPLETES ACQUISITION OF MERITUS GROUP MANAGEMENT INC., EXPANDING PRESENCE IN GREATER TORONTO AREA

Tribe Property Technologies Inc. has completed its acquisition of Meritus Group Management Inc., an arm's-length party, strengthening Tribe Property's presence in the Greater Toronto Area of Ontario.

"We are thrilled to welcome the Meritus team under the Tribe umbrella as we expand our network of successful property management service providers across the country," said Joseph Nakhla, chief executive officer of Tribe Property. "This acquisition marks a significant milestone for the company as we expand our presence directly into the largest metropolitan area in Canada, giving a boost to our revenue and adding more than 5,000 homes under management."

The acquisition is a continuation of Tribe Property's strategy to increase the company's geographic footprint in Canada and beyond. The acquisition of Meritus strengthens Tribe Property's national presence, now with eight offices across Canada -- five in British Columbia, one in Alberta and two in Ontario, including the company's new Meritus office in greater Toronto.

"I have been looking for the right partner -- a company that shares similar goals of modernizing the property management industry and improving the level of service we can all provide for our clients with a focus on innovation, education and operational efficiencies. Tribe was the obvious choice," said Meritus principal Dean McCabe.

Transaction details

In exchange for all the outstanding share capital of Meritus, Tribe Property has paid a total of $1-million in cash and common shares in the capital of the company to the existing shareholder of Meritus as follows:

• $50,000 in cash as an initial deposit;
• $350,000 in cash subject to a working capital adjustment noted below;
• 143,678 shares at a deemed issue price of 69.6 cents per share and equal to $100,000;
• $300,000 by way of promissory note (1).

The company has also paid $200,000 in cash on closing as a working capital adjustment.

The shares issued are subject to a statutory hold period of four months and a day expiring on April 19, 2024, and a voluntary lock-up, from which one-third will be released every six months over an 18-month period.

The company has agreed to increase the purchase price by $175,500 payable in shares at a deemed issue price of 69.6 cents per share in the event certain future revenue targets are achieved.

No finders' fees were paid or payable in conjunction with this transaction.

Having completed 12 acquisitions to date, Tribe Property has established a successful record of executing and integrating acquisitions to further accelerate the company's revenue growth.

About Tribe Property Technologies Inc.

Meritus was founded by Mr. McCabe in 2016, with the belief that condominium communities can benefit from a management relationship that is built on trust and respect earned through transparency, accuracy and reliability. Meritus generated over $2-million in revenues in its latest fiscal year.

About Tribe Property Technologies Inc.

Tribe Property is a property technology company that is disrupting the traditional property management industry. As a rapidly growing technology-forward property management company, Tribe Property's integrated service technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers. Tribe Property seeks to acquire highly accretive targets in the fragmented North American property management industry and transform these businesses through streamlining and digitization of operations. Tribe Property's platform decreases customer acquisition costs, increases retention, and allows for the addition of value-added products and services through the platform.

(1) The promissory note will be secured against the assets of Meritus, bear interest at a rate of 7 per cent per annum on the unpaid principal, and will be due and payable over a three-year term.

We seek Safe Harbor.