Montfort Capital Announces Pause on Dividends for Series A Class A Preferred Shares and Series 1 Class C Preferred Shares

Montfort Capital Announces Pause on Dividends for Series A Class A Preferred Shares and Series 1 Class C Preferred Shares

TORONTO, April 3, 2025 /CNW/ - Montfort Capital Corp. ("Montfort" or the "Company") (TSXV: MONT), has elected to pause the quarterly dividend on the Series A Class A Preferred Shares (each, a "Class A Preferred Share") and Series 1 Class C Preferred Shares (each, a "Class C Preferred Share").  The Board of Directors of Montfort has determined that, in consideration of Montfort's ongoing restructuring activities and in order to preserve capital to ensure the financial flexibility of Montfort, this pause is a prudent and necessary decision for the Company.

"As the largest holder of preferred shares, I am committed to seeing the dividend resume as soon as possible," said Ken Thomson, CEO of Montfort, "but I firmly believe that the board is acting prudently and in the best interest of all Montfort stakeholders with its decision to pause the dividend." 

Within the past year, Montfort has undertaken a substantial restructuring plan that has included the sale of two business units, significant reduction in overhead costs and indebtedness, and a refocusing of resources on its profitable and growing lines of business operated from its Toronto head office.  Significant progress has been made on this restructuring plan and it is nearing completion.  While this will initially result in Montfort having a lower base of assets under management, the portfolio will have a reduced risk profile with more stable profitability.  This will enable the continued growth of Montfort's core assets and support the broader strategic growth objectives of the Company.

About Montfort Capital Corp.

Montfort is a trusted provider of focused private credit strategies for institutional investors, family offices, and wealth managers.  We employ focused strategies, experienced management teams and advanced technology to drive superior risk-adjusted investment returns. For further information, please visit www.montfortcapital.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-Looking Information

Certain information and statements in this news release contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements normally contain words like 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should', 'ongoing' and similar expressions, and within this news release include any statements (express or implied) respecting the future growth of the Company and the Company's future financial performance.

Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances, including, without limitation, the assumption that the Company and its investee companies are able to meet their respective future objectives and priorities and assumptions concerning general economic growth and the absence of unforeseen changes in the legislative and regulatory framework for the Company.

Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Montfort's business. Material risks and uncertainties applicable to the forward-looking statements set out herein include but are not limited to: intense competition in all aspects of business; reliance on limited management resources; general economic risks; new laws and regulations and risk of litigation. Although Montfort has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Montfort. Accordingly, readers should not place undue reliance on forward-looking statements. Montfort undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.

SOURCE Montfort Capital Corp.