Mr. Troy Wright reports

LENDIFIED ANNOUNCES FIRST TRANCHE CLOSING OF PRIVATE PLACEMENT AND APPOINTMENT OF NEW BOARD MEMBER

Lendified Holdings Inc. (formerly Hampton Bay Capital Inc.) has completed the first tranche of its previously announced offering of units of the company consisting of 54,738,064 units at a price of 1.5 cents per unit for aggregate gross proceeds of $821,071. Each unit is composed of one common share in the capital of the company and one common share purchase warrant exercisable at five cents per common share until Aug. 21, 2023.

The securities of the company are subject to a failure-to-file cease trade order (FFCTO) issued by the Ontario Securities Commission (OSC) on July 9, 2020. The first tranche closing of the offering was effected pursuant to a partial revocation order of the OSC issued Aug. 14, 2020, as announced by the company in its press release of Aug. 17, 2020. The securities of the company will remain subject to the FFCTO until such order is fully revoked, and the granting of the partial revocation order by the OSC does not guarantee the issuance of a full revocation order in the future. The proceeds derived from the sale of the units will be used for payment of certain expenses of the company associated with bringing the public record into compliance, including employee payrolls, trade payables, general office and administration expenses, and professional fees.

All of the securities issuable in connection with the offering are subject to a hold period expiring four months and one day after the date of issuance in accordance with TSX Venture Exchange rules and Canadian securities laws.

The company has been granted an extension by the TSX-V to complete a second and final tranche of the offering no later than Aug. 28, 2020. There can be no assurances that the company will be able to complete a second tranche of the offering. The offering is subject to the final approval of the TSX-V and to all regulatory approvals.

Lendified is also pleased to announce Peter Ostapchuk has been appointed to the board of directors of the company. Mr. Ostapchuk has over 29 years of private- and public-sector financial advisory, governance, restructuring and financial performance management expertise in leadership roles.

The board of directors of the company is now composed of Troy Wright, Perry Dellelce, Kevin Clark and Mr. Ostapchuk.

Early warning

Hybrid Financial has acquired beneficial ownership or control or direction of an aggregate 20 million shares of the company (representing 13.34 per cent of the class of outstanding shares on an undiluted basis) and 20 million warrants (together with the shares, representing 26.69 per cent of the class of shares on a partially diluted basis) from the treasury of the company. Each share is entitled to one vote at any duly called meeting of shareholders.

Immediately prior to the completion of the first tranche of the offering, the acquiror owned or controlled 300,000 shares (representing 0.32 per cent of the class prior to the completion of the first tranche of the offering on an undiluted basis) and 150,000 warrants exercisable into shares (together with the shares, representing 0.47 per cent of the class prior to completion of the first tranche of the offering on a partially diluted basis). Immediately following completion of the first tranche of the offering, the acquiror now owns or controls 20.3 million shares (representing 13.54 per cent of the class on an undiluted basis) and 20.15 million warrants exercisable into shares (together with the shares, representing 26.99 per cent of the class on a partially diluted basis). The acquiror has executed a standstill agreement pursuant to which it has agreed not to exercise any convertible securities to the extent such exercise would result in it holding more than 20 per cent of the outstanding voting securities of the company.

The acquiror acquired the shares and the warrants comprising the units in a private transaction and not through the facilities of any marketplace. The shares and warrants comprising the units were acquired for a price of 1.5 cents per unit for an aggregate purchase price of $300,000.

This press release is being issued pursuant to National Instrument 62-103 (the Early Warning System and Related Take-Over Bid and Insider Reporting Issues), which requires a report to be filed on SEDAR containing additional information with respect to the foregoing matters. A copy of this report may be obtained by contacting Steven Marshall at 647-338-7937.

About Lendified Holdings Inc.

Lendified, a company located in Ontario, Canada, is a Canadian fintech company operating both a lending platform which provides working capital loans to small businesses across Canada through a wholly owned subsidiary, as well as a software-as-a-service technology platform providing artificial-intelligence-enabled credit origination and analytics to financial institutions across Canada through another wholly owned subsidiary, JUDI.AI. The company announced its intention to sell JUDI.AI in its press release of July 7, 2020.

We seek Safe Harbor.