STANDARD MERCANTILE ACQUISITION CORP. ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS

TORONTO, Nov. 8, 2023 /CNW/ - Standard Mercantile Acquisition Corp. (TSX: SMA) (the "Company") today released its financial results for the three months and nine months ended September 30, 2023. The financial statements and MD&A can be found at of the Company can be found at www.sedarplus.ca  or www.standardmercantileacquisition.com.

Income from operations for the three and nine months ended September 30, 2023 was lower than the same periods in 2022 by $176 thousand and $66 thousand, respectively, due to lower interest revenue mainly attributable to a decrease in the value of the mortgage portfolio following the repayment of the outstanding indebtedness owing to the Company under its Alberta mortgage, that was fully paid as of June 30, 2023.

Basic and diluted earnings per share during the three months and nine months ended September 30, 2023 was $(0.01) and $0.02, respectively, compared to $0.01 and $0.03, respectively, in the same periods in 2022.

The Company paid a special distribution to its holders of class A shares ("Shares") during the quarter ended September 30, 2023 of $0.40 per Share of the Company on August 17, 2023, totaling $2,919,427 in aggregate (September 30, 2022 - nil).

The Company only held one remaining mortgage as of September 30, 2023, which mortgage was sold by the Company to a third-party purchaser on November 3, 2023 for gross proceeds of $2,125,772 (the "Sale Transaction"). The Sale Transaction was completed in accordance with the winding-up (the "Wind-up Plan") of the Company's business as approved by shareholders ("Shareholders") of the Company at the annual and special meeting of Shareholders held on June 16, 2016. Please see the Company's news release dated November 3, 2023 for additional details relating to the anticipated next steps of the Wind-up Plan.

The Company previously held a portfolio of mortgages in Canada and is currently in the process of winding up its business in accordance with the Wind-up Plan. At the Company's 2021 annual and special meeting of shareholders, the Company sought and received Shareholder approval to change its name to "Standard Mercantile Acquisition Corp.", among other amendments to the articles of the Company.

Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". The forward-looking statements are founded on the basis of expectations and assumptions made by the Company. Details of the risk factors relating to the Company and its business are discussed under the heading "Business Risks and Uncertainties" in the Company's annual Management's Discussion & Analysis for the year ended December 31, 2022 and under the heading "Risk Factors" in the Company's Annual Information Form dated March 24, 2023, copies of which are available on the Company's SEDAR profile at www.sedarplus.ca. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

SOURCE Standard Mercantile Acquisition Corp.