STANDARD MERCANTILE ACQUISITION CORP. ANNOUNCES RECEIPT OF FINAL PRINCIPAL PAYMENT UNDER ITS ALBERTA MORTGAGE AND SPECIAL DISTRIBUTION

TORONTO, July 26, 2023 /CNW/ - Standard Mercantile Acquisition Corp. (TSX: SMA) (the "Company") announces that it has received the final $2.8 million principal payment (the "Final Alberta Mortgage Payment") owing to it under the Company's interest in the mortgage on its Alberta residential property (the "Alberta Mortgage"), which was previously the largest remaining mortgage in the Company's mortgage portfolio. As a result of the receipt of such payment, the Company no longer has an interest in the Alberta Mortgage.

In connection with the receipt of the Final Alberta Mortgage Payment, the board of directors of the Company has declared a special distribution of $0.40 per Class A share of the Company (the "Special Distribution"). The Special Distribution, which constitutes a return of capital pursuant to the winding-up of the Company's business as approved by shareholders of the Company on June 16, 2016, as amended on May 6, 2021 (the "Orderly Wind-Up"), will be paid on August 17, 2023 to holders of Class A shares of record at the close of business on August 4, 2023. As of July 25, 2023, there were 7,298,567 Class A shares outstanding.

The Special Distribution payment is not subject to any condition, will be made in cash and will be subject to the "Due Bill" trading requirements mandated by the Toronto Stock Exchange (the "TSX"). Because the amount of the Special Distribution represents a distribution of greater than 25% of the market value of the Class A shares on the declaration date, the TSX has required that the Class A shares trade on a "Due Bill" basis during the period (the "Due Bill Period") from and including August 3, 2023 until the close of trading on August 17, 2023 (the "Payment Date"). This means that buyers of Class A shares through the facility of the TSX during the Due Bill Period will receive the Special Distribution payment, provided they continue to be holders of the applicable Class A shares on the Payment Date.

The Class A shares will commence trading on an ex-distribution basis (i.e., without an attached "Due Bill" entitlement to the Special Distribution) commencing the opening of trading on August 18, 2023 (i.e., the next trading day after the Payment Date). The Due Bill redemption date will be August 21, 2023. As a result of the Class A shares trading on a Due Bill basis during the Due Bill Period, those entitled to be paid the Special Distribution owing on the Due Bills should expect to receive that payment by the Due Bill redemption date of August 21, 2023.

About the Company

The Company holds a portfolio of mortgages in Canada. 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. 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 through transactions that could capitalize on the Company's public listing. The Board has experience in sourcing, evaluating and executing transactions of this nature.

Forward-Looking Statements

Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". The forward-looking statements are founded on the basis of expectations and assumptions made by the Company. Details of the risk factors relating to the Company and its business are discussed under the heading "Business Risks and Uncertainties" in the Company's annual Management's Discussion & Analysis for the year ended December 31, 2022 and under the heading "Risk Factors" in the Company's Annual Information Form dated March 24, 2023, copies of which are available on the Company's SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

SOURCE Standard Mercantile Acquisition Corp.

Jordan Kupinsky, Chief Executive Officer, Tel: [phone], Email: [email protected]