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Book Value of $1.23 per share; up 50% over the previous four-quarters

TORONTO, May 26, 2023 (GLOBE NEWSWIRE) — Flow Capital Corp. (TSXV:FW) (“Flow Capital” and “Company”), a number one supplier of versatile progress capital and various debt options, publicizes its unaudited monetary and working outcomes for the quarter ending March 31, 2023 (“Q1 2023”). Financial references are in Canadian {dollars} until in any other case specified.

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Q1 2023 Highlights

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“While our revenues were down slightly year over year, they were in line with our expectations. Slower than expected capital deployment combined with several early repayments has led to flat revenue growth.” stated Alex Baluta, CEO of Flow Capital. “However, our balance sheet remains very strong with over $10M in cash, and we continue to generate positive cash flow from recurring operations”.

Flow Capital continues to focus its efforts on originating and investing in excessive progress corporations seeking to gas growth with out the extreme and costly dilution of fairness, or restrictive covenants of standard debt. With over thirty million small and medium sized enterprise within the United States and Canada, and tens of hundreds of thousands of others in Flow Capital’s addressable geographies and sectors, there’s a massive market of potential funding alternatives.

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“In spite of the slow capital deployment, we continue to see a very strong pipeline in terms of quality of opportunities. The equity market volatility is generating a marked increase in demand for the type of creative and flexible capital provided by Flow. In fact, our qualified deal pipeline was at record levels in Q1 and we expect that several of the deals already in late stage due diligence, should close over the coming weeks”, stated Alex Baluta, CEO of Flow Capital.

RESULTS OF OPERATIONS

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   (1) Excludes mortgage amortization income and one time funds.
   (2) Calculated by taking Total Shareholders’ Equity as reported on the Statements of Financial Position over the variety of excellent shares.

Detailed Financial outcomes can be found on our web site at www.flowcap.com or on www.sedar.com.

Revenues

Total income for the three-month interval ended March 31, 2023, was $1,747,126 in comparison with $3,868,286 within the three-month interval ended March 31, 2022. Loan curiosity and royalty fee revenue for the three-month interval ended March 31, 2023, was $1,691,481 representing a 4.2 % lower from the $1,765,374, earned within the three-month interval ended March 31, 2022.

Of the $1,691,481 mortgage curiosity and royalty fee revenue earned throughout the three-month interval ended March 31, 2023, $103,666 was contributed by curiosity earned from new investments acquired within the final twelve months, $1,422,673 from mortgage curiosity and royalty fee revenue from the present portfolio, and $165,142 on account of mortgage amortization changes.

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Income from modifications in worth of economic belongings for the three-month interval ended March 31, 2023, was $(19,089) in comparison with $2,100,805 for the three-month interval ended March 31, 2022.

Operating Expense

Total working bills for the three-month interval ended March 31, 2023, have been $807,073 (2022 – $760,289).   The improve is primarily on account of larger skilled charges in comparison with the earlier corresponding intervals.

Profit After Taxes

Profit after taxes for the three-month interval ended March 31, 2023, have been $ 345,450 (2022 – $2,349,942). The actions within the revenue after taxes was totally on account of steady mortgage curiosity and royalty fee revenue and beneficial international change impacts, offset by fewer buyouts, truthful worth actions, and marginally larger working prices, in comparison with the corresponding intervals within the earlier yr.

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Assets

Portfolio Update

Conference Call Details

Flow Capital will host a convention name to debate these outcomes at 9:00 a.m. Eastern Time, on Monday, May 29, 2023. Participants ought to name +1 (888) 886-7786 or +1 (416) 764-8658 and ask an operator for the Flow Capital earnings name, Conference ID 16372857. Please dial in 10 minutes previous to the decision to safe a line. A replay might be obtainable shortly after the decision. To entry the replay, please dial +1 (416) 764-8692 or +1 (877) 674-7070 and enter passcode 372857#. The replay recording might be obtainable till 11:59 p.m. Eastern Time, June 12, 2023.

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An audio recording of the convention name might be additionally obtainable on the buyers’ web page of Flow Capital’s web site at www.flowcap.com/financials.

About Flow Capital

Flow Capital Corp. is a diversified various asset investor and advisor, specializing in offering minimally dilutive capital to rising progress companies. To apply for financing, go to www.flowcap.com.

For additional info, please contact:

Flow Capital Corp.
Alex Baluta
Chief Executive Officer
alex@flowcap.com

1 Adelaide Street East, Suite 3002,
PO Box 171,
Toronto, Ontario M5C 2V9

Forward-Looking Information and Statements

This press launch comprises sure “forward-looking information” inside the that means of relevant Canadian securities laws and may comprise statements which will represent “forward-looking statements” inside the that means of the secure harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking info and forward-looking statements should not consultant of historic details or info or present situation, however as an alternative characterize solely the Company’s beliefs relating to future occasions, plans or targets, a lot of which, by their nature, are inherently unsure and outdoors of the Company’s management. Generally, such forward-looking info or forward-looking statements may be recognized by means of forward-looking terminology akin to “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such phrases and phrases or might comprise statements that sure actions, occasions or outcomes “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking info contained herein might embrace, however will not be restricted to, info with respect to: potential monetary efficiency; together with the Company’s opinion relating to the present and future efficiency of its portfolio, bills and operations; anticipated money wants and want for extra financing; anticipated funding sources; future progress plans; royalty acquisition targets and proposed or accomplished royalty transactions; estimated working prices; estimated market drivers and demand; enterprise prospects and technique; anticipated developments and challenges within the Company’s enterprise and the markets by which it operates; the quantity and timing of the fee of dividends by the Company; and the Company’s monetary place. By figuring out such info and statements on this method, the Company is alerting the reader that such info and statements are topic to recognized and unknown dangers, uncertainties and different components which will trigger the precise outcomes, degree of exercise, efficiency or achievements of the Company to be materially completely different from these expressed or implied by such info and statements.

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An funding in securities of the Company is speculative and topic to plenty of dangers together with, with out limitation, dangers regarding: the necessity for extra financing; the relative speculative and illiquid nature of an funding within the Company; the volatility of the Company’s share worth; the Company’s restricted working historical past; the Company’s capacity to generate adequate revenues; the Company’s capacity to handle future progress; the restricted diversification within the Company’s current investments; the Company’s capacity to barter further royalty purchases from new investee corporations; the Company’s dependence on the operations, belongings and monetary well being of its investee corporations; the Company’s restricted capacity to train management or route over investee corporations; potential defaults by investee corporations and the unsecured nature of the Company’s investments; the Company’s capacity to implement on any default by an investee firm; competitors with different funding entities; tax issues, together with the potential affect of the Foreign Account Tax Compliance Act on the Company; the potential affect of the Company being categorized as a Passive Foreign Investment Company (“PFIC”); the Company’s capacity to pay dividends sooner or later and the timing and quantity of these dividends; reliance on key personnel, notably the Company’s founders; dilution of shareholders’ curiosity via future financings; and normal financial and political situations; in addition to the dangers focus on ed within the joint administration info round of the Company dated May 2, 2018 and the dangers mentioned herein. Although the Company has tried
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In reference to the forward-looking info and forward-looking statements contained on this press launch, the Company has made sure assumptions. Assumptions concerning the efficiency of the Canadian and U.S. economies over the following 24 months and the way that can have an effect on the Company’s enterprise and its capacity to determine and shut new alternatives with new investees are materials components that the Company thought-about when setting its strategic priorities and targets, and its outlook for its enterprise.

Key assumptions embrace, however should not restricted to: assumptions that the Canadian and U.S. economies related to the Company’s funding focus will stay comparatively steady over the following 12 to 24 months; that rates of interest won’t improve dramatically over the following 12 to 24 months; that the Company’s current investees will proceed to make royalty funds to the Company as and when required; that the companies of the Company’s investees won’t expertise materials detrimental outcomes; that the Company will proceed to develop its portfolio in a fashion much like what has already been established; that tax charges and tax legal guidelines won’t change considerably in Canada and the U.S.; that extra small to medium non-public and public corporations will proceed to require entry to various sources of capital; that the Company can have the flexibility to lift required fairness and/or debt financing on acceptable phrases; and that the Company can have adequate free money stream to pay dividends. The Company has additionally assumed that entry to the capital markets will stay comparatively steady, that the capital markets will carry out with regular ranges of volatility and that the Canadian greenback won’t have a excessive quantity of volatility relative to the U.S. greenback. In figuring out expectations for financial progress, the Company primarily considers historic financial knowledge offered by the Canadian and U.S. governments and their businesses. Although the Company believes that the assumptions and components utilized in making ready, and the expectations contained in, the forward- wanting info and statements are affordable, undue reliance shouldn’t be positioned on such info and statements, and no assurance or assure may be provided that such forward-looking info and statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such info and statements.

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The forward-looking info and forward-looking statements contained on this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company doesn’t undertake to replace any forward-looking info and/or forward-looking statements which are contained or referenced herein, besides in accordance with relevant securities legal guidelines. All subsequent written and oral forward- wanting info and statements attributable to the Company or individuals appearing on its behalf is expressly certified in its entirety by this discover.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that time period is outlined within the insurance policies of the TSX Venture Exchange) accepts accountability for the adequacy or accuracy of this launch.  

¹ Excludes mortgage amortization income and one-time funds
² Adjusted recurring free money stream is an internally outlined, non-IFRS measure calculated as recurring revenues from curiosity and royalties, much less recurring working bills much less curiosity bills.