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Dealnet Closes Acquisition of $29 Million Consumer Finance Receivable Portfolio

TORONTO, ONTARIO -- (Marketwired) -- 01/13/17 -- Dealnet Capital Corp. ("Dealnet" or the "Company") (TSX VENTURE: DLS) is pleased to announce that it has closed the $29.2 Million portfolio acquisition previously announced on December 23, 2016.

The portfolio consists of consumer finance rental contracts valued at approximately $29.2 million from a prominent Ontario dealer who operates in one of the Company's key verticals. Key portfolio metrics include:


--  Average remaining term of 13.5 years based on the useful life of the
    underlying HVAC equipment
--  Average monthly billing rate per contract of approximately $108 per
    month
--  Current gross monthly billings of approximately $290,000
--  Approximately 2,700 individual consumers will be added to the Dealnet
    customer base
--  Portfolio performance and credit consistent with the current Dealnet
    portfolio
--  Dealnet expects to enter into a long-term material funding relationship
    with the dealer and generate new originations in the first quarter

Total consideration for the portfolio was a cash payment on closing of $22.5 million less certain adjustments, along with the issuance of 12,523,364 common shares valued at $6.7 million. The Company has simultaneously securitized certain contracts from the portfolio to fund the cash portion of the transaction.

The common shares issued pursuant to the transaction will be subject to a hold period of four months expiring on May 14, 2017. Additionally, the common shares will be subject to a three year timed release escrow commencing on closing.

"We are very pleased with the outcome of this transaction which signals the strength of our balance sheet at year end and the depth of our treasury and funding ability. The shares issued as part of this transaction aligns our new dealer with the Company, as we look to grow that relationship through new originations. Transactions of this quality are attractive and can be completed with relative ease as we migrate this new portfolio to our platform without inheriting incremental general and administrative expenses", stated Michael Hilmer, CEO. "We continue to seek out accretive book acquisitions with the expectation that they continue to increase cash flow and earnings per share for the Company over the long term."

Forward Looking Statement

This news release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the Company. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.

About Dealnet Capital Corp.

Dealnet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. Dealnet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to them resulting in dealer origination growth.

For additional information please visit www.sedar.com.

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

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