Mr. Jordan Kupinsky reports

STANDARD MERCANTILE ACQUISITION CORP. ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS

Standard Mercantile Acquisition Corp. has released its financial results for the three months and nine months ended Sept. 30, 2023. The financial statements and management's discussion and analysis can be found on SEDAR+ or the Standard Mercantile website.

Q3 financial highlights and business update

Income from operations for the three and nine months ended Sept. 30, 2023, was lower than the same periods in 2022 by $176,000 and $66,000, respectively, due to lower interest revenue mainly attributable to a decrease in the value of the mortgage portfolio following the repayment of the outstanding indebtedness owing to the company under its Alberta mortgage, that was fully paid as of June 30, 2023.

Basic and diluted earnings per share during the three months and nine months ended Sept. 30, 2023, were (one cent) and two cents, respectively, compared with one cent and three cents, respectively, in the same periods in 2022.

The company paid a special distribution to its holders of Class A shares during the quarter ended Sept. 30, 2023, of 40 cents per share of the company on Aug. 17, 2023, totalling $2,919,427 in aggregate (Sept. 30, 2022: nil).

The company only held one remaining mortgage as of Sept. 30, 2023, which mortgage was sold by the company to a third party purchaser on Nov. 3, 2023, for gross proceeds of $2,125,772. The sale transaction was completed in accordance with the windup of the company's business as approved by shareholders of the company at the annual and special meeting of shareholders held on June 16, 2016. Please see the company's news release dated Nov. 3, 2023, for additional details relating to the anticipated next steps of the windup plan.

About Standard Mercantile Acquisition Corp.

The company previously held a portfolio of mortgages in Canada and is currently in the process of winding up its business in accordance with the windup plan. 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.

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