TORONTO, Aug. 5, 2021 /CNW/ - Stack Capital Group Inc., ("Stack Capital" or the "Company") (TSX: STCK) (TSX: STCK.WT) an investment holding company seeking to generate long-term capital appreciation through investments into growth-to-late-stage private businesses, today announces its financial results for the quarter ending June 30, 2021 ("Q2-2021"). Stack Capital reports all amounts in Canadian Dollars unless otherwise stated.

Q2-2021 Highlights

• On June 16, 2021, the Company completed its Initial Public Offering ("IPO") for gross proceeds of $100 million. Concurrent with the closing of the Company's IPO, certain officers of the Manager (the "Management Investors") invested gross proceeds of $7 million on similar terms as the IPO on a non-brokered, private placement basis. As part of the non-brokered private placement, each Management Investor agreed to a five-year voluntary lock-up, subject to certain customary exceptions.

• As at June 30, 2021, the working capital of the Company was $100.3 million and the Book Value per Share was $11.25. The Company's cash balance at quarter end was $101.4 million.
  

"We're extremely proud of the successful IPO for Stack Capital and have been working diligently since that time towards executing on the mandate to democratize access into some of the world's most innovative and disruptive, growth-to-late-stage private companies", said Jeff Parks, CEO of Stack Capital. "We look forward to announcing Stack's inaugural portfolio investment and, over time, building a diversified portfolio of private company investments for the benefit of shareholders."

Canaccord Genuity 41st Annual Growth Conference

Stack Capital also announces that Jeff Parks, Stack Capital Group CEO, will be presenting at the Canaccord Genuity 41st Annual Growth Conference on Tuesday, August 11, 2021 at 2:00 PM EST. The Stack Capital Group management team will also be conducting investor meetings in conjunction with the conference as well. Please contact Brian Viveiros with the contact information below for further information.

Cautionary Note Regarding Forward-Looking Information

This press release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward-looking information contained or referred to in this press release includes, but may not be limited to, the exit conditions of the TSX Sandbox; and the business of Stack Capital and the risks associated therewith, including those identified in the Prospectus under the heading "Risk Factors".

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although Stack Capital believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Stack Capital can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the ability to capitalize on investment opportunities. The forward-looking information in this press release reflects the current expectations, assumptions and/or beliefs of Stack Capital based on information currently available to Stack Capital.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Stack Capital disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

Non-IFRS Financial Measures

This press release may make reference to the following financial measures which are not recognized under International Financial Reporting Standards ("IFRS") and which do not have a standard meaning prescribed by IFRS:

• Book Value - the aggregate fair value of the assets of the Company on the referenced date, less the aggregate carrying value of the liabilities, excluding any deferred taxes if applicable, of the Company; and

• Book Value per Share - the Book Value on the referenced day divided by the aggregate number of Common Shares that are outstanding on such day.

The Company's Book Value per Share is a measure of the performance of the Company as a whole. The Company's method of determining this financial measure may differ from other issuers' methods and, accordingly, this amount may not be comparable to measures used by other issuers. This financial measure is not a performance measure as defined under IFRS and should not be considered either in isolation of, or as a substitute for, net earnings per share prepared in accordance with IFRS.

About Stack Capital

Stack Capital is an investment holding company and its business objective is to maximize long-term capital appreciation through investments in equity, debt and/or other securities of some of the world's most innovative and disruptive growth to late-stage private businesses. SC Partner Ltd. (the "Manager") took the initiative in creating Stack Capital and acts as the Company's exclusive manager to source and advise with respect to all investments for Stack Capital. The Manager also manages such investments and otherwise directs Stack Capital's affairs and manages the Company's business.

The TSX agreed to list Stack Capital pursuant to the TSX Sandbox and exercised its discretion to waive the requirements for historical earnings and pre-tax cash flow as Stack Capital did not meet the original listing requirements of the TSX set out in Section 309(a) of the TSX Company Manual. Listing on the TSX was subject to Stack Capital fulfilling all of the listing requirements of the TSX (save for those requirements for which an exemption or waiver was provided through the TSX Sandbox) including, among other things, raising minimum gross proceeds of $100 million under the Offering. Stack Capital will remain listed pursuant to the TSX Sandbox until such time as it has: (i) deployed 50% of the net proceeds raised pursuant to the Offering and the Management Investment; and (ii) publicly filed interim financial statements reflecting a full quarter of operating history subsequent to listing on the TSX. As disclosed under "Risk Factors" in the (final) prospectus of Stack Capital dated June 9, 2021 (the "Prospectus"), Stack lacks an operating history and there is a very limited basis upon which a potential investor can evaluate Stack's ability to achieve its stated investment objective. Investors are referred to the risk factors set out in the Prospectus for further details.

SOURCE Stack Capital Group Inc.

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