Mr. Peter Deeb reports

HAMPTON FINANCIAL CORPORATION ANNOUNCES 4TH QUARTER AND FULL YEAR RESULTS FOR 2024

Hampton Financial Corp. has released its financial results for the fourth quarter and full year of fiscal 2024.

"While our results for the year demonstrate some improvement due to cost control and the inclusion of our commercial lending business acquisition, the fourth quarter and full-year results reflect continued pressures on revenues and earnings across our industry that began in the fall of 2022 and continued well into calendar 2024. Capital markets activity continues to be weaker than expected. On the bright side, our commercial lending activities provided some optimism for 2025 and beyond," said Hampton's executive chairman and chief executive officer, Peter Deeb.

Fourth quarter IFRS (international financial reporting standards) result highlights

Fourth quarter ended Aug. 31, 2024:

• Q4 revenues of $3,351,000, an increase of 51 per cent year over year;
• Q4 net losses of $1,925,000 or four cents per share.

Full-year IFRS result highlights

Fiscal year ended Aug. 31, 2024:

• FY revenues of $9,794,000, an increase of 12 per cent year over year;
• FY net losses of $2.74 million or seven cents per share.

Full-year fiscal result (adjusted for non-recurring and non-cash items) highlights

Fiscal year ended Aug. 31, 2024:

• FY adjusted net losses of $1,186,000 or two cents per share;
• FY EBITDA (earnings before interest, taxes, depreciation and amortization) of negative $535,000, versus negative $1,395,000 for the fiscal year 2023.

Summary of corporate developments

The company's fourth quarter and full-year results reflect the challenging year that was 2024 for the industry as a whole. Rising interest rates and global uncertainty continue to delay many financings and broader financial decisions on the part of issuers, negatively impacting the company corporate finance business. While 2024 showed some signs of improvement, the year ahead for the company's core businesses looks somewhat unclear. That said, the company intends to move ahead with a number of initiatives to further expand its business portfolio, while growing its existing wealth management, capital markets businesses and commercial lending operations. The company is hopeful for an improved 2025.

The company, through its wholly owned subsidiary, Hampton Securities Ltd. (HSL), continues to develop its wealth management, advisory team and principal-agent programs, which offer 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 corporate finance group provides early-stage, growing companies the capital they need to create value for investors. The treasury group works to maximize returns from the company's balance sheet and strengthen the company's competitive position as one of Canada's leading independent financial institutions. The company's wholly owned commercial lending business, Oxygen Working Capital Corp. (OXY), provides factoring and term financing to businesses across Canada. Copies of Hampton's unaudited interim financial statements and its management's discussion and analysis for the fiscal year ended Aug. 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 the Investment Industry Regulatory Organization of Canada (IIROC), and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario and Quebec. In addition, the company 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. The company is also engaged in the commercial lending space through its wholly owned subsidiary, Oxygen Working Capital. The company continues to explore 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.

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