Mr. Peter Deeb reports

HAMPTON FINANCIAL CORPORATION ANNOUNCES 3RD QUARTER RESULTS

Hampton Financial Corp. has released its financial results for the third quarter (Q3) ended May 31, 2024.

Third quarter fiscal highlights:

• Q3 revenues of $2,837,000, an increase of 48 per cent year over year;
• Q3 net income of $500,000 or one cent per share, versus net loss of $1,023,000 or three cents per share in the comparative quarter last year;
• Q3 EBITDA (earnings before interest, taxes, depreciation and amortization) of $305,000, versus negative $750,000 in the comparative quarter last year.

Summary of corporate developments

The company's third quarter results reflect the challenging environment that continues to weigh on issuer's ability to finance growth, which in turn still hampers corporate finance revenues.

While 2024 is showing some signs of improvement, the year ahead for Hampton's core business remains unclear.

"The third quarter results continue to demonstrate the industry-wide slowdown that has extended into 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. As we now see a direction in interest rates, we remain optimistic for the balance of the fiscal year.

"After two postconsolidation months of business, we are very pleased with the Oxygen Working Capital acquisition and the culture they've created is very much in line with Hampton.

"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 three and nine months ended May 31, 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 (the 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 practice.

The company, through its commercial lending and leasing subsidiary, Oxygen Working Capital Corp., which was acquired by the company during the third quarter, offers working capital and other financing solutions to small- and medium-sized early and mid-stage companies across Canada.

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.