HFC Hampton Financial Corporation

Hampton Financial Corporation (“Hampton” or the “Company”, TSXV:HFC & HFC.PR.A) today announced its financial results for the 1st quarter ended November 30th, 2022.

“The first quarter results are indicative of the challenges faced across the industry during the fall of 2022. Capital Markets activity slowed drastically as interest rates continued to rise, and equity markets declined. In light of the challenging market conditions, a number of capital markets activities and transactions were deferred to subsequent quarters. With that being the case, we continue to remain optimistic for the balance of the fiscal year,” said Hampton Executive Chairman & CEO Peter Deeb.

First Quarter fiscal highlights:                                                

First Quarter ended November 30th, 2022;

• Q1 Revenues of $2,409,000; a decrease of 60% year-over-year
• Q1 Net Losses of $(588,000) or $(0.02) per share;
• Q1 EBITDA of $(244,000) vs $1,344,000 in the comparative quarter last year

Summary of Corporate Developments:                                                        

In addition to being a tough quarter for the industry, the first quarter of Fiscal 2023 was always going to be a difficult comparison to Q1 2022, as we rolled into last year with the strongest markets we had seen in some time, completing a record number of Capital Markets transactions. Many transactions we had hoped to close in Q1 of this year did not materialize. That said we have been considerably more active in Q2, and we hope to recover lost ground over the balance of fiscal 2023.   Additionally, the 1st Quarter’s results include several non-cash and extraordinary items including, $117,000 employee benefit expense and $205,000 net loss on re-valuation of the inventory of broker warrants.

Despite challenging markets, in our 1st Quarter we raised a total of $4,163,000 in new Convertible Subordinated Debentures bearing 9%; an improvement of approximately 400 basis points in our spread over 5-year treasuries from a year earlier. As well, we redeemed all of our 12% notes payable and retired all of our Preferred Shares, streamlining our balance sheet while raising additional working capital.

During the 1st Quarter and on into Q2, Wealth Management continued to perform with consistent strength and our treasury operations are accelerating. As such, we look forward to reporting progress during the 2nd quarter.  

The Company, through its wholly owned subsidiary, Hampton Securities Limited (“HSL”) continues to develop its Wealth Management, Advisory Team and Principal-Agent programs which offers the industry’s most experienced wealth managers a unique and flexible operating platform that provides additional freedom, financial support, and tax effectiveness as they build and manage their professional practice. Our Corporate Finance Group provides early stage, growing companies the capital, they need to create value for investors. Our Treasury Group works to maximize returns from our balance sheet and strengthen our competitive position as one of Canada’s leading independent financial institutions.   Copies of Hampton’s unaudited interim financial statements and its Management’s Discussion & Analysis for the three months ended November 30, 2022 can be accessed on SEDAR at www.sedar.com.

About Hampton Financial Corporation

Hampton is a unique private equity firm that seeks to build shareholder value through long-term strategic investments. Through HSL, Hampton is actively engaged in family office, wealth management, institutional services and capital markets activities. HSL is a full-service investment dealer, regulated by IIROC and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario, and Quebec. In addition, the Company provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on recognized securities exchanges in Canada and abroad. The company is also exploring opportunities to diversify its sources of revenue by way of strategic investments in both complimentary business and non-core sectors that can leverage the expertise of its Board and the diverse experience of its management team.

For more information, please contact:

Olga JuravlevChief Financial OfficerHampton Financial Corporation(416) 862-8701

Or

Peter M. DeebExecutive Chairman & CEOHampton Financial Corporation(416) 862-8651

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