Mr. Scott Morris reports

TRILOGY INTERNATIONAL PARTNERS INC. REPORTS SECOND QUARTER 2023 RESULTS

Trilogy International Partners Inc. has released its financial and operating results for the second quarter of 2023. All amounts are in United States dollars unless otherwise stated.

Second quarter 2023 highlights

• Received approximately $22-million New Zealand dollars from the escrow established in connection with the sale of the company's New Zealand subsidiary in May, 2022.
• Cash and cash equivalents totalled $30.3-million as of June 30, 2023.
• Subsequent to June 30, 2023, the company completed the second distribution to shareholders in a total of $27.5-million (Canadian), equivalent to approximately $21-million.
• Following the distribution, the company had a remaining cash balance of approximately $9-million as of July 31, 2023.
• Corporate operating costs were approximately $1.4-million in the second quarter of 2023, which represented a decrease of 59 per cent compared with $3.5-million (excluding $10.0-million of nonrecurring costs) in the second quarter of 2022.
• The company expects corporate costs to continue to decline in the second half of 2023, as the company manages reporting costs through May, 2028, when the indemnification period related to the sale of the New Zealand subsidiary ends.

About Trilogy International Partners Inc.

TIP Inc. formerly owned wireless and fixed broadband telecommunications subsidiaries in New Zealand and Bolivia.

In December, 2021, a subsidiary of the company entered into a purchase agreement to sell its 73.2-per-cent indirect equity interest in its New Zealand subsidiary, Two Degrees Mobile Ltd., to Voyage Digital (NZ) Ltd. at an implied enterprise value of $1.7-billion New Zealand dollars, inclusive of lease liabilities (the 2degrees sale). In March, 2022, subsidiaries of the company entered into an agreement to transfer their aggregate 71.5-per-cent indirect equity interest in their Bolivia subsidiary, Empresa de Telecomunicaciones NuevaTel (PCS de Bolivia) S.A., to Balesia Technologies Inc. for a nominal purchase price. During the second quarter of 2022, the company completed the sale of its operations in New Zealand and Bolivia, which represented substantially all of the operating activity of the business.

Managing the company's liquidity and financial resources

As of June 30, 2023, the company had $30.3-million in cash and cash equivalents. The $30.3-million in cash and cash equivalents includes $7.3-million (Canadian) for distributions and continuing costs denominated in that currency. As of Dec. 31, 2022, the company had $25.1-million in cash and cash equivalents.

During the second quarter of 2023, the company received $22.3-million New Zealand dollars ($13.7-million) from the proceeds of the 2degrees sale that were held in escrow. This amount includes $600,000 New Zealand dollars of interest accrued on the escrowed amount and changes in the New Zealand-dollar to U.S.-dollar foreign currency exchange rates between funding and settlement of the forward exchange contracts. Approximately $18,000 New Zealand dollars ($11,000) was paid to Voyage Digital for certain agreed-upon purchase price adjustments, which was deducted from the escrowed proceeds and reduced the gain on the 2degrees sale. As of June 30, 2023, approximately $300,000 New Zealand dollars ($200,000) remained outstanding in escrow. Subsequent to June 30, 2023, these remaining proceeds were released to the company.

In July, 2023, the company completed a return of capital distribution to shareholders pursuant to the plan of liquidation that was adopted by the board on June 10, 2022. The return of capital distribution was 31 Canadian cents per common share, representing an aggregate amount of approximately $27.5-million (Canadian) (approximately $20.8-million). The ultimate liquidation of the company will be subject to a shareholder vote and the satisfaction of certain other legal requirements.

Following this distribution, the company had approximately $9-million of cash at July 31, 2023, as a reserve for the payment of expenses for continued financial reporting and other compliance obligations through May, 2028, when its remaining indemnification obligations related to the 2degrees sale are scheduled to expire, after which time the company expects to distribute any remaining assets to shareholders and dissolve. The cash reserve will also be utilized for the payment of indemnification claims, if any, that may arise from the transaction but are not funded by the warranty insurance policy purchased in connection with the 2degrees sale.

The company expects that it will be required to comply with Canadian and United States public company reporting obligations through the six-year indemnification period following the closing of the 2degrees sale. During the period in which the company continues to report publicly, the company will be responsible for maintaining appropriate processes and controls around financial reporting. However, given the significantly reduced risk profile of the company following the 2degrees sale and the NuevaTel transaction, the company has reduced its cost structure, with a significant portion of the work force having ceased employment with the company in September, 2022, and the company has retained only a limited number of resources to ensure compliance with continuing regulatory and audit requirements. The company has also negotiated with service providers to ensure a significant reduction in costs going forward. It is also the company's expectation that following the escrow release and subsequent distribution in 2023, the company will endeavour to further adjust its cost structure.

We seek Safe Harbor.