Hampton Closes Previously Announced Issue of Shares for Debt

Executive Summary

• Hampton Financial Corporation closed a share issuance to settle $4 M of principal and approximately $5.2 M of accrued interest on its debentures.
• The transaction involved the issuance of 10,528,141 subordinate voting shares to debenture holders, subject to a four‑month‑plus hold period expiring May 30 2026.
• Management expects the settlement to strengthen the balance sheet and materially improve cash‑costs, positively impacting 2026 results.

Key Details

• Shares Issued: 10,528,141 subordinate voting shares.
• Purpose: Settlement of all obligations under Hampton’s debentures (principal $4 M) and payment of a quarterly interest amount of approximately $5.2 M.
• Hold Period: Shares are restricted for four months and one day from issuance; restriction lifts on May 30 2026.
• Balance‑Sheet Impact: Reduces cash outflows required for debt service, lowering the company’s cost of funding operations.
• Expected Result: Management anticipates a “meaningful impact” on 2026 financial performance, implying material positive effect.

Notable Quotes

• Peter M. Deeb, Executive Chairman & CEO: “This closing will serve to strengthen Hampton’s balance sheet and reduce the cash cost of funding its operations. The Company expects this to have a meaningful impact on 2026 results.” (paraphrased from release)