Torrent Capital Reports 28% Year over Year NAV Growth in Q3 2021 Results and Appoints New Directors

Halifax, Nova Scotia - (Newsfile Corp. - November 29, 2021) - Torrent Capital Ltd. (TSXV: TORR) ("Torrent" wave "Company") released financial results for the quarter ended September 30, 2021. Additionally, Torrent is pleased to announce the appointment of Wayne Myles and Carl Sheppard as members of the Company's Board of Directors, effective November 30.^th, 2021.

Recent highlights from Q3 2021 include:

• Net Asset Value ("NAV") per share of $ 1.20, this represents a 28% YoY increase from a NAV per share of $ 0.94 as of September 30, 2020.

• Quarter-over-quarter increase in NAV of 5.3% to $ 1.20 at the end of the third quarter of 2021 from $ 1.14 at the end of the second quarter of 2021.

• Realized gain on investments of $ 3,936,189 for the nine months ended September 30, 2021

• Unrealized gain on investments of $ 871,811 for the nine months ended September 30, 2021

• A cumulative return of 375.3%, since Torrent was launched as an Investment Issuer on June 30, 2017, representing a compound annual rate of return of 44%. For comparison, the compound annual return over the same period for the S & P / TSX Small-Cap Index and the S&P 500 was 4.6% and 14.5%, respectively.

* 6-month period from the date the Company was fully invested on June 30, 2017.

The highest-yielding investments in Torrent's portfolio that contributed to its third-quarter results were Wildbrain Ltd. and Kneat.com Inc. Wildbrain's management continues to advance its recovery supported by reorientation of corporate objectives and elimination of risk of the balance sheet and, as such, investor confidence continues to improve reflected by a 16.2% increase in share prices during the third quarter. Kneat.com Inc. had another strong growth quarter due to strong financial results, the addition of new clients and a listing on the Toronto Stock Exchange. The share price increased 45.9% during the quarter.

The story continues

Cleantech companies listed on Canadian markets underperformed in the third quarter following strong growth at the beginning of the year. Torrent sees this underperformance as temporary in nature, as the ESG sector is underpinned by strong tailwinds as cleantech adoption becomes mainstream. Since repositioning its investments to include a portfolio of cleantech companies in 2020, Torrent remains confident in this sector and continues to research investment opportunities with strong business plans, strong intellectual property, and realistic economic assumptions. Despite volatile market conditions in this sector, Torrent achieved positive quarter-over-quarter growth of 5.2%, while the TSX SmallCap Index returned -3%.

"In the third quarter of 2021, the Canadian small-cap and venture markets experienced low volumes and a slight downward trend in prices, as is typical in the summer months. Torrent continued to demonstrate its ability to return value to retailers. shareholders despite unfavorable market conditions for small businesses and microcaps. The diversity of Torrent's portfolio and the team's ability to selectively pursue investment opportunities were critical to the company's performance in the third However, I am confident in the positioning of our investment portfolio as we move into the fourth quarter, we maintain a cautious approach given the broad market risks that are present today. In addition, I welcome Carl Sheppard and Wayne Myles to the company board of directors ". - Wade Dawe, CEO and President

Mr. Wayne Myles, QC has been Counsel to the Cox and Palmer Law Firm for NL, NS & NB since 2012. Mr. Myles was named one of the 25 Most Influential Corporate Business Lawyers in Canada by Canadian Lawyer Magazine, 2015. Similarly, according to his peer reviews, he has been repeatedly recognized by numerous professional publications; including by the Lexpert Legal Board of Canada as a leading professional in Transportation Law, Banking and Financial Institutions and Mergers and Acquisitions.

For the past 35 years, Mr. Myles has been a co-investor and board member of a diversified group of public and private companies associated with commercial real estate development, retail and commercial sales and distribution businesses, as well as a portfolio company series. He also sits on the Board of the Insolvency Institute of Canada, where he chairs various committees, and recently completed terms as Chairman of the Board of Newfoundland and Labrador Liquor Corporation and as Director of CPA Newfoundland Labrador.

Mr. Myles received a Bachelor of Commerce from Dalhousie University in 1977, a Bachelor of Laws from the University of New Brunswick in 1981. In 2002 he was appointed Counselor to the Queen in Newfoundland.

Mr. Carl Sheppard is President and Managing Partner of Strategic Concepts, Inc., a business consulting firm. For the past thirty years he has provided consulting services to many of Canada's leading resource companies and organizations. He has participated in numerous economic studies, strategic plans, cost / benefit reports and business plans aimed at identifying development opportunities. Sheppard has served as an officer, board member, and chairman of committees for various public and private companies, including NetBenefit Software Inc., Battery Road Capital Corp., and Duckworth Capital Corp.

Mr. Sheppard has a Masters in Development Economics from Dalhousie University, where his area of ​​concentration was regional development from a Canadian perspective. He also holds a Bachelor of Arts with Honors (Economics) from Glendon College, York University and a Bachelor of Arts from Memorial University.

Messrs. Myles and Sheppard will complement the ongoing Board of Directors following the resignation of Mr. Philip Armstrong, who will step away to focus on other investment firms. Armstrong has been a member of the Torrent Board since 2016 and was instrumental in guiding the Company through its business change from a Resource Issuer to an Investment Issuer. Wade Dawe, CEO of Torrent, would like to thank Mr. Armstrong for his years of service and, in particular, for his guidance, as Torrent established itself as an Investment Issuer increasing its investment portfolio of $ 5.6 million in 2016 to more than $ 30 million in 2021.

About Torrent Capital

Torrent is a publicly traded investment issuer that invests in the securities of private and publicly traded companies. The Company invests in companies that are due to accelerated growth or that are trading at a discount to their intrinsic value. Torrent offers investors the potential to outperform the market while providing transparency, daily liquidity, and a modest fee profile compared to competing investment products. Currently, the Company is actively investigating investment opportunities in the cleantech sector.

For more information contact:

Scott gardner
Head of investments
(647) 446-7474

CAUTIONARY STATEMENT REGARDING FUTURE INFORMATION: This press release includes certain "forward-looking statements" under applicable Canadian securities laws. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed. Or implicit. for such forward-looking statements. There can be no guarantee that such statements will be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Torrent denies any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. The reader is referred to the Company's annual financial reports for a discussion of risks and uncertainties.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATORY SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF TSX VENTURE EXCHANGE) ACCEPTS LIABILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/105673