Montfort Capital Announces $65 Million Loan Capacity Raise and Creation of Series 1 Class C Preferred Shares for Insurance Lending Subsidiary Langhaus Financial – Montfort Capital (OTC:MONTF)

~Langhaus Financial Raises Bank Loan Capacity with Its Largest Lending Partner and Montfort Series 1 Class C Preferred Shares Created for Conversion $12.5 million Of Langhaus Class A Preferred Share~

toronto, 4 July 2023 /CNW/ – Montfort Capital Corporation (“Montfort” or the “Company”) Mont MONTFA leading alternative lender utilizing focused strategies, experienced management teams and advanced technology, is pleased to announce that its insurance lending subsidiary, Langhaus Financial Partners Inc. (“Langhaus”) has increased its bank funding capacity. $65 million, moreover, montfort has launched its Series 1, Class C Preferred Shares for conversion of $12.5 million Langhaus Class A preferred shares. Langhaus is a leading non-bank provider of life insurance backed loan solutions to high net worth individuals and entrepreneurs. Canada, The expansion is a strategic move to support the rapid growth of Langhaus’ insurance loan business.

“The additional capacity comes at an extremely opportune time for our insurance loan business,” said corey bast, COO of Langhaus Financial. “We are seeing increased demand for our insurance policy backed loan solutions and this increase in funding will enable us to expand our business and support Canadian advisors and their clients. The share conversion also supports montfort The business model is leveraging our expertise in private lending across multiple sectors, including technology, small and medium-sized businesses, real estate and our insurance loan solutions.”

Creation of Series 1, Class C preferred shares

But 1 July 2023The Company’s Board of Directors has approved Series 1, Class C Preferred Shares (“Series 1 Shares“) to facilitate share exchange with preferred shareholders of Langhaus Financial Corporation. Under the terms of the Series 1 Shares, holders of the Series 1 Shares are entitled to a non-cumulative annual dividend rate equal to the yield on the Canadian dollar denominated. Non-redeemable of Government Canada A bond with a maturity of two years (“Canadian 2YR Yield“) plus 5.0% (“dividend rate“), paid quarterly if such dividend is declared by the Company. Under the terms of the Series 1 Shares, if the Actual Canadian 2YR Yield is less than 1.00%, the Canadian 2YR Yield shall be deemed to be 1.00%. For purposes of the dividend rate and if the actual Canadian 2YR yield is greater than 7.00%, the Canadian 2YR yield will be considered 7.00% for purposes of calculating the dividend rate. The dividend rate will be calculated on the last day of the previous quarter in which the dividend is payable. To the Company Expected to be the first dividend payable on Series 1 shares 1 October 2023,

Series 1 shares can also be redeemed by the company $25.00 Per Series 1 subordinated shares of Class A and Class B preferred shares upon liquidation, dissolution or winding up of the company and other distributions of assets among shareholders for purposes of rank or liquidation matters.

Please see the full terms and conditions of the Series 1 Shares included in the Company’s articles and posted on the Company’s SEDAR profile,

Completion of preferred share exchange with Langhaus shareholders

The company is pleased to announce the closing of the share exchange agreements (“stock exchange“) with all holders (“LFC Shareholderof each series of Class A Preferred Shares in Langhaus Financial Corporation”)LFC Shares“). Under the terms of the share exchanges, LFC shareholders collectively agreed to convert all 1,247,000 issued and outstanding LFC shares in exchange for 498,800 Series 1 shares. The LFC shares were acquired by the Company $10.00 per LFC share.

In connection with the Share Exchange, the Company has also entered into arrangements with certain holders of Series 1 Shares regarding the possible future redemption of their Series 1 Shares.

As a leading non-bank provider of insurance policy backed loan solutions, Langhouse works closely with leading insurance companies and top advisors. Canada, The expertise of the Langhaus team lies in designing flexible loan programs tailored to the specific needs of borrowers. Their expertise extends to structured finance transactions and complex borrower structures, often beyond the scope of traditional Canadian banks.

The significant growth in lending capacity strengthens Langhaus’ position as a leader in the insurance policy backed loan market, providing exceptional financial solutions to its valued customers. Canada,

About Montfort Capital Corporation

montfort Manages a diverse group of specialized private credit brands that use focused strategies and experienced management teams combined with advanced technology to drive fee-related performance. montfort Facilitates transparency for all its investors through public company reporting. For more information please visit

Neither the TSX Venture Exchange nor its Regulation Services Provider (as this term is defined in the TSX Venture Exchange’s policies) accepts responsibility for the adequacy or accuracy of this news release.

forward looking information

Certain information and statements in this news release contain forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements generally include words such as ‘believe’, ‘expect’, ‘estimate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’, ‘should’, ‘ There are words like ‘going on’. ‘ and similar expressions, and this news release includes any statement (express or implied) regarding the future development of the Company and the future financial performance of the Company.

Forward-looking statements are not guarantees of future performance, operations or development and are based on expectations, assumptions and other factors that management currently believes to be relevant, reasonable and appropriate under the circumstances, including without limitation the assumption that the Company and its The Invested Companies are able to make assumptions relating to their respective future objectives and priorities and general economic growth and the absence of unanticipated changes in the legislative and regulatory framework for the Company.

Although management believes that the forward-looking statements are reasonable, actual results could differ materially due to associated and inherent risks and uncertainties. of montfort Business Material risks and uncertainties applicable to the forward-looking statements herein include, but are not limited to: intensified competition in all aspects of the business; reliance on limited management resources; general economic risk; New laws and regulations and the risk of litigation. Although montfort While efforts have been made to identify factors that could cause actual actions, events or results to differ materially from those stated in the forward-looking statements, there may be other factors that could cause actions, events or results to differ from those anticipated, forecasted are not predictable or intended. Plus, many factors are out of control. montfort, Accordingly, readers should not place undue reliance on forward-looking statements. montfort It undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof, except as required by law. All forward-looking statements included in this news release are pursuant to this cautionary statement.

SOURCE Montfort Capital Corp.

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