TORONTO, ON – March 22, 2024 – Montfort Capital Corporation (“Montfort” or the “Company”) (TSX-V:MONT/OTCQB:MONTF), a trusted provider of focused private credit strategies for institutional investors, family offices, and wealth managers, today announced an up to C$200 million senior secured, revolving credit facility (the “Credit Facility”) for its wholly-owned subsidiary Brightpath Capital Corporation (“Brightpath”) from funds managed by Atalaya Capital Management LP (“Atalaya”). Brightpath intends to use the credit facility to finance its current portfolio and future originations. The Credit Facility provides for an initial commitment of C$100 million, which Brightpath has the option to increase to C$200 million, subject to consent of Atalaya. The Credit Facility has a term of 36 months.

“Brightpath has built an impressive origination and servicing platform in the Canadian mortgage market. Brightpath has a unique business model and generates attractive assets that provide utility to underserved Canadian consumers,” said Daniel Rosato, Managing Director at Atalaya. “We look forward to supporting Brightpath’s growth plans with this credit facility.”

“This partnership with Atalaya aligns Brightpath with a highly-regarded global asset manager,” said Blake Albright, CEO of Brightpath and Chief Capital Officer of Montfort Capital. “Atalaya has taken the time to deeply understand our business and the market opportunity in Canada.  We are excited to be working with the team at Atalaya to scale Brightpath by capturing this opportunity.”

The Credit Facility will bear interest at a floating rate equal to the Canadian Overnight Repo Rate Average (“Adjusted Daily Compounded CORRA”) plus a commercially reasonable credit spread. Interest will be paid bi-monthly commencing on April 5, 2024 and draws under the Credit Facility will end on April 1, 2027 with the Credit Facility having a final maturity date of April 1, 2028.

Each of Atalaya and its affiliates is an arm’s length party to the Company and Brightpath, and the Company is not guaranteeing the loan or pledging any collateral under the Credit Facility other than a limited recourse guarantee and pledge providing a security interest in the shares held by the Company in Brightpath II Servicing Corporation (the general partner of Brightpath Residential Mortgage LP II (the “SPV”)). Brightpath has provided a limited recourse guarantee and pledge providing a security interest in the SPV. The Credit Facility is not convertible into common shares of the Company.

Edgar Matthews & Co. LLC served as exclusive financial advisor to Brightpath on the transaction.

About Atalaya

Atalaya Capital Management is a privately held, SEC-registered, alternative investment advisory firm. Atalaya primarily focuses on making private credit and special opportunities investments in three principal asset classes – financial assets, real estate, and corporate. Founded in 2006, Atalaya is headquartered in New York City, has approximately $10 billion in assets under management and has invested approximately $17+ billion since inception.

About Brightpath

Brightpath specializes in arranging mortgages for people who are self-employed, new to the country, experiencing credit issues, or looking at renovation/flip projects. Our knowledge and experience, efficient service, and common sense approach to lending are just a few of the reasons to select Brightpath Capital for financing needs. We also offer bridge financing for residential properties with flexible terms. Private mortgages at very competitive terms. Interest only payments. Fully open terms. For more information please visit: www.brightpath.ca.

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
Ken Thomson
CEO
Montfort Capital Corporation
(604) 398-8839
IR@MONTFORTCAPITAL.COM

Atalaya Capital Management
Ben Howard
Bhoward@prosek.com

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NOT FOR DISSEMINATION IN THE UNITED STATES OR TO US PERSONS OR FOR DISTRIBUTION TO US NEWSWIRE SERVICES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR AN INVITATION TO PURCHASE ANY SECURITIES DESCRIBED IN IT.

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.