Mr. Jordan Kupinsky reports

STANDARD MERCANTILE ACQUISITION CORP. ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Standard Mercantile Acquisition Corp. today released its financial results for the three months and six months ended June 30, 2023. The financial statements and MD&A (management discussion and analysis) can be found at of the company can be found at SEDAR or the company's website.

Q2 financial highlights and business update

Income from operations for the three and six months ended June 30, 2023, was higher than the same periods last year by $84,000 and $110,000 respectively due to the favourable increase in revenue (by $21,000 and $38,000, respectively) and due to lower share-based compensation expense and lower general and administrative expenses compared with prior periods.

Basic earnings per share during the three months and six months ended June 30, 2023, was two cents and three cents, respectively compared with 0.4 cent and one cent, respectively in the same periods in 2022. Diluted earnings per share during the three months and six months ended June 30, 2023, was one cent and two cents, respectively, compared with 0.4 cent and one cent, respectively in the same periods in 2022.

The company made a special distribution during the quarter ended June 30, 2023, of 39.7 cents per Class A share of the company on June 28, 2023, totalling $2,897,531 in aggregate (June 30, 2022 -- nil).

The remaining indebtedness under the company's largest mortgage on a residential property in the province of Alberta totalling approximately $5,623,574 was fully paid during the three months ended June 30, 2023, and, as a result, the company only held one remaining mortgage as of June 30, 2023, and the date hereof. Management will continue its efforts to monetize the company's remaining mortgage.

About the company

The company holds as of June 30, 2023, one mortgage 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.

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