Mr. Jordan Kupinsky reports

STANDARD MERCANTILE ACQUISITION CORP. ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS

Standard Mercantile Acquisition Corp. has released its financial results for the three months ended March 31, 2023. The financial statements and management's discussion and analysis of the company can be found at SEDAR or the company's website.

First quarter financial highlights and business update

Income from operations increased by $26,000 for the three months ended March 31, 2023, compared with the same period in 2022. This increase was driven by an increase in revenue of $18,000 and lower share-based compensation expense in the first quarter of 2023 of $9,000 compared with $29,000 in the same period in 2022, and was offset by an increase in general and administrative expenses in the first quarter of 2023 of $110,000 compared with $97,000 in the same period last year.

Basic and diluted income per share during the three months ended March 31, 2023, was one cent compared with one cent in the same period in 2022.

There were no regular or special distributions made during the three months ended March 31, 2023 (March 31, 2022: nil).

During the three months ended March 31, 2023, the company repurchased 24,500 Class A shares at an aggregate cost of $21,400 (2022: nil) as part of its normal course issuer bid that commenced on Dec. 20, 2022.

About Standard Mercantile Acquisition Corp.

The company holds a portfolio of two mortgages in Canada. At the 2021 annual and special shareholders meeting of the company, the company sought and received shareholder approval to change its name to Standard Mercantile Acquisition Corp., among other amendments to the articles. The company is focused on monetizing its remaining mortgage assets and is considering options to enable its shareholders to participate in the potential future value of the company. The board of directors of the company has experience in sourcing, evaluating and executing transactions of this nature.

We seek Safe Harbor.