Dealnet Obtains $6.25 Million Term Loan with Schedule 1 Bank

Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS) announced today that it has executed a binding commitment letter for a $6.25 million, 12-month term loan with a Schedule 1 Bank in partnership with the Export Development Corporation. This loan bears interest at bank’s prime rate + 4%, with an annual guarantee fee of 1.8% and is secured by a first ranking general security agreement over EcoHome. The Company can request a 12-month extension which can be granted at the discretion of the Bank.

“This term loan enhances Dealnet’s financial position and positions the Company for future origination growth and value creation once the current health and financial crisis show signs of easing,” said Brent Houlden, Dealnet's Chief Executive Officer. “I am pleased that despite the immediate challenges posed by COVID-19, we were able to secure requisite financing while avoiding dilution and preserving shareholder equity.”

INFOR Financial Inc. acted as the financial advisor to the Company in connection with the term loan.

About Dealnet Capital Corp.

Dealnet is the parent company of subsidiaries operating in two market segments, consumer finance and call centre. The Company operates in the consumer finance segment in Canada through EcoHome Financial Inc. (“EcoHome”) and its call centre segment under the One Contact banner (“One Contact”).

EcoHome is a specialty finance company serving the $20 billion Canadian home improvement finance market. EcoHome develops and supports consumer sales financing programs for approved dealers and distributors under agreements with original equipment manufacturers (OEMs) that supply a wide range of home improvement products to the retail market. Through a dealer network, EcoHome underwrites, originates, funds and services the prime quality loans and leases that homeowners need to finance the acquisition and installation of capital assets that improve the quality, comfort and safety of their homes.

One Contact offers customer support services to third-party institutions across Canada and the U.S. and to EcoHome.

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.

Contact Information

Brent Houlden
Chief Executive Officer
(905) 695-8557 ext.1145
bhoulden@dealnetcapital.com

Michael Koshan
Chief Financial Officer and Treasurer
(905) 695-8557 ext. 1113
mkoshan@dealnetcapital.com