Mr. Jordan Kupinsky reports

STANDARD MERCANTILE ACQUISITION CORP. ANNOUNCES RECEIPT OF FINAL PRINCIPAL PAYMENT UNDER ITS ALBERTA MORTGAGE AND SPECIAL DISTRIBUTION

Standard Mercantile Acquisition Corp. has received the final $2.8-million principal payment owing to it under the company's interest in the mortgage on its Alberta residential property, which was previously the largest remaining mortgage in the company's mortgage portfolio. As a result of the receipt of such payment, the company no longer has an interest in the Alberta mortgage.

In connection with the receipt of the final Alberta mortgage payment, the board of directors of the company has declared a special distribution of 40 cents per Class A share of the company. The special distribution, which constitutes a return of capital pursuant to the winding up of the company's business as approved by shareholders of the company on June 16, 2016, as amended on May 6, 2021, will be paid on Aug. 17, 2023, to holders of Class A shares of record at the close of business on Aug. 4, 2023. As of July 25, 2023, there were 7,298,567 Class A shares outstanding.

The special distribution payment is not subject to any condition, will be made in cash and will be subject to the due-bill trading requirements mandated by the Toronto Stock Exchange. Because the amount of the special distribution represents a distribution of greater than 25 per cent of the market value of the Class A shares on the declaration date, the TSX has required that the Class A shares trade on a due-bill basis during the period from and including Aug. 3, 2023, until the close of trading on Aug. 17, 2023. This means that buyers of Class A shares through the facility of the TSX during the due-bill period will receive the special distribution payment, provided they continue to be holders of the applicable Class A shares on the payment date.

The Class A shares will commence trading on an ex distribution basis (without an attached due-bill entitlement to the special distribution) commencing the opening of trading on Aug. 18, 2023 (the next trading day after the payment date). The due-bill redemption date will be Aug. 21, 2023. As a result of the Class A shares trading on a due-bill basis during the due-bill period, those entitled to be paid the special distribution owing on the due bills should expect to receive that payment by the due-bill redemption date of Aug. 21, 2023.

About Standard Mercantile Acquisition Corp.

The company holds a portfolio of mortgages in Canada. 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. 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 through transactions that could capitalize on the company's public listing. The board has experience in sourcing, evaluating and executing transactions of this nature.

We seek Safe Harbor.