Mr. Peter Deeb reports

HAMPTON FINANCIAL CORPORATION ANNOUNCES 2ND QUARTER RESULTS

Hampton Financial Corp. has released its financial results for the second quarter ended Feb. 29, 2024.

Second quarter fiscal highlights:

Second quarter ended Feb. 29, 2024.

• Q2 revenues of $1,864,000; a decrease of 25 per cent year over year;
• Q2 net losses of $(751,000) or (two cents) per share; an improvement of 17 per cent year over year;
• Q2 EBITDA (earnings before interest, taxes, depreciation and amortization) of $(441,000) versus $(437,000) in the comparative quarter last year.

Summary of corporate developments

The company's second quarter results reflect the challenging environment across the financial services industry amidst rising interest rates and global uncertainty which continues to delay many financings and broader financial decisions on the part of issuers. While 2024 is showing some signs of improvement, the year ahead for Hampton's core business remains unclear.

"The second quarter results continue to demonstrate the industry-wide slowdown that has extended in to the first half of calendar 2024. Capital markets activities have started to improve as interest rates have stabilized, so we are hopeful for a stronger second half of the year. We remain optimistic for the balance of the fiscal year.

"On a positive note, we were pleased to announce that subsequent to the end of our second quarter we have completed the acquisition of Oxygen Working Capital Corp. The integration of this new commercial lending unit into the broader Hampton group is complete and we look forward to a positive contribution to financial results moving forward. We also see this as an excellent opportunity to enhance our capital markets offerings with an additional funding offering for early and mid-stage companies," said Hampton Executive chairman and chief executive officer Peter Deeb.

Copies of Hampton's unaudited interim financial statements and its management's discussion and analysis for the six months ended Feb. 29, 2024, can be accessed on SEDAR+.

About Hampton Financial Corp.

Hampton is a unique private equity firm that seeks to build shareholder value through long-term strategic investments.

Through HSL, Hampton is actively engaged in family office, wealth management, institutional services and capital markets activities. HSL is a full-service investment dealer, regulated by CIRO (Canadian Investment Regulatory Organization) and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario and Quebec. In addition, the company, through HSL, provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on recognized securities exchanges in Canada and abroad, and HSL's corporate finance group provides early-stage, growing companies the capital they need to create value for investors. HSL continues to develop its wealth management, advisory team and principal-agent programs, which offer to the industry's most experienced wealth managers a unique and flexible operating platform that provides additional freedom, financial support and tax effectiveness as they build and manage their professional practices.

The company is also exploring opportunities to diversify its sources of revenue by way of strategic investments in both complementary business and non-core sectors that can leverage the expertise of its board and the diverse experience of its management team.

We seek Safe Harbor.