EXCITING NEWS ABOUT ESPRESSO CAPITAL

I’m pleased to share some exciting news about our expansion plans.

Since Espresso Capital was launched six years ago, we are proud to have provided fast, fairly priced and user-friendly risk capital to more than 200 early and expansion stage technology companies in Canada.

This is an exciting time for the Canadian technology sector. Coast to coast, we’re seeing a new generation of companies developing world-class technologies with the potential to be global market leaders. As one of the most active providers of venture debt in Canada, we’re privileged to support this community of entrepreneurs and investors.

It’s against this backdrop that I’m pleased to announce that my senior management team and I have acquired majority ownership in Espresso. We have also secured financing to support the next phase of the company’s growth, which includes an ambitious technology investment program and the launch of a new, evergreen fund.

At the same time, Enio Lazzer has joined our team as COO/CFO and Will Hutchins as Managing Director. Espresso co-founder Gary Yurkovich and outgoing CFO Chris Hill will continue to be actively involved in the business. Gary has become Executive Chairman, while Chris is Chairman of our Credit Committee.

This is a time of rapid innovation in financial services as ‘fintech’ firms leverage technology and sophisticated analytics to disrupt existing business models and provide novel solutions to previously underserved markets.

We believe that ‘fintech’ innovation will dramatically reshape small business lending, and we are fully committed to be at the forefront of technology driven change as it relates to our category. Earlier this year, we launched an online loan application portal to make it easier for our clients to share information with us. Over the next twelve months we will be rolling out additional innovations relating to loan underwriting, documentation, servicing and monitoring.

Of course, it’s not just about technology. Our goal is to further improve on our capacity to deliver fast, fairly priced, user-friendly risk capital to our clients, and to better manage risk for our investors.

Our proposed Espresso Capital Fund V will build upon the innovative financing solutions that Espresso has become known for. In 2009, our business was created to bridge finance SR&ED tax credits. Since then, we have expanded our tax credit financing to include a wide variety of accrued tax credits as well as other government incentive programs, and also launched recurring revenue financing. With the launch of Fund V we look forward to further bridging the gap between bank financing and equity with new working capital and growth financing products. Finally, Fund V will be our first RRSP eligible fund, and the first to be distributed by registered dealers. For details, see the definitive fund documents for Fund V which should be available shortly.

As we enter this new chapter, we believe Espresso is well positioned to be the leading provider of venture debt to the Canadian technology sector. If you would like to learn more about our plans or explore financing options, please get in touch.