VANCOUVER, BC – June 29, 2023 – Montfort Capital Corporation (“Montfort” or the “Company”) (TSX-V:MONT/OTCQB:MONTF), a leading alternative lender utilizing focused strategies, experienced management teams and advanced technology, today announced an agreement with Arena Investors, LP (“Arena”), a US$3.5 billion institutional investment manager, to establish a joint venture with initial capacity to deploy up to $100 million of funding. Arena will provide up to US$95 million in conjunction with US$5 million from Montfort to capitalize the venture with up to a US$100 million of funding capacity. The purpose of the venture is to provide growth capital to entrepreneurs in the technology sector. Funding can be drawn on an as needed basis and increased at the option of both parties should the intended funding capacity be reached in the next twelve months. TIMIA Capital Inc. (“TIMIA”) will earn fees for servicing the venture.

Arena is a global investment firm that provides creative and flexible capital solutions for special situations. The joint venture combines Arena’s extensive capital base and history of growth-oriented specialty finance with TIMIA’s expertise in originating and managing technology focused loan portfolios, for the purpose of providing venture debt financing to technology companies in North America.

“For over two decades Arena’s senior investment team has been investing in special situation asset and credit investments, with extensive prior experience in every permutation of growth-oriented and venture capital-backed finance, and we are excited to form a strategic joint venture with TIMIA to focus on technology companies across North America,” said Victor Dupont, Managing Director of Arena Investors. “The opportunity in private credit remains significant and we firmly believe our joint venture will be met with substantial demand from companies seeking capital.”

“The timing could not be better to combine TIMIA’s expertise in loan origination and management of technology-focused debt, with Arena’s funding capabilities,” said Monique Morden, President of TIMIA Capital. “The recent departure of Silicon Valley Bank in March of this year, has created a significant opportunity for private credit lenders in the technology sector. Through our joint venture with Arena, TIMIA will be in position to fill a void left by SVB’s exit and seize quantifiable market share in the lending space. With TIMIA’s established reputation in the SaaS and broader tech industry, our team is fully equipped to effectively deploy this new funding.”

“The partnership with Arena represents another significant milestone for TIMIA as it adds a new element of financial strength with a leading global investment firm, Arena Investors,” said Andrew Abouchar, Interim CEO, Montfort Capital. “Arena has been a supportive common shareholder since participating in an equity financing in late 2021. Their early recognition of the value of our technology lending business further reinforces the potential and the value that TIMIA brings to the table. We are excited to forge a long and mutually beneficial relationship with the team at Arena.”

About Arena Investors, LP

Arena Investors is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With $3.5 billion of invested and committed assets under management as of April 1, 2023, and a team of over 100 employees in offices globally, Arena provides creative solutions for those seeking capital in special situations. The firm brings individuals with decades of experience, a track record of comfort with complexity, the ability to deliver within time constraints, and the flexibility to engage in transactions that cannot be addressed by banks and other conventional financial institutions. See www.arenaco.com for more information.

About TIMIA Capital

Founded in 2015, TIMIA Capital provides flexible growth capital to technology companies. Our debt financing enables entrepreneurs to drive growth while retaining ownership and control of their business. For further information, please visit www.timiacapital.com.

About Montfort Capital Corporation

Montfort manages a diversified group of specialized private credit brands that utilize focused strategies and experienced management teams combined with advanced technology to improve fee-related performance. Montfort facilitates transparency for all of its investors through public company reporting. For further information, please visit www.montfortcapital.com.

For more information, please contact:

Tim McNulty / Darren Seed
Incite Capital Markets
Andrew Abouchar
Interim CEO
Montfort Capital Corporation
(604) 398-8839
IR@MONTFORTCAPITAL.COM

Parag Shah
Arena Investors
ir@arenaco.com

Lindsay Jablonski
Arena Investors (Media)
pro-arena@prosek.com

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

Forward-Looking Information

Certain information and statements in this news release contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements normally contain words like ‘believe’, ‘expect’, ‘anticipate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’, ‘should’, ‘ongoing’ and similar expressions, and within this news release include any statements (express or implied) respecting the future growth of the Company and the Company’s future financial performance.

Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances, including, without limitation, the assumption that the Company and its investee companies are able to meet their respective future objectives and priorities and assumptions concerning general economic growth and the absence of unforeseen changes in the legislative and regulatory framework for the Company.

Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Montfort’s business. Material risks and uncertainties applicable to the forward-looking statements set out herein include but are not limited to: intense competition in all aspects of business; reliance on limited management resources; general economic risks; new laws and regulations and risk of litigation. Although Montfort has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Montfort. Accordingly, readers should not place undue reliance on forward-looking statements. Montfort 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 may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.