Target Capital Announces Debt Settlement Agreements and Sale of Olympia Financial Group Inc. and Bearspaw Tree Farm Inc. Shares

CALGARY, ALBERTA--(Marketwired - March 20, 2017) - Target Capital Inc. ("Target") (TSX VENTURE:TCI)(CSE:TCI)(CSE:TCI.CN) is pleased to announce that it has entered into multiple release and settlement agreements, bond exchange agreements and share purchase agreements pursuant to which:

• Holders of outstanding Target bonds with an aggregate face value of less than $10,000, agree to settle and release Target with respect to all amounts owed with respect to such outstanding Target bonds in return for payment equal to the aggregate face value of the outstanding Target bonds;
  
  
• Holders of outstanding Target bonds with an aggregate face value greater than $10,000, agree to settle and release Target with respect to all amounts owed with respect to such outstanding Target bonds in return for the issuance of a new Target bond with a face value equal to 35% of the aggregate face value of the outstanding Target bonds held and a cash payment equal to 65% of the aggregate face value of the outstanding Target bonds held;
  
  
• The new Target bonds have no maturity date and bear simple interest at a rate of 1.25% per annum above the prime rate of Canadian Imperial Bank of Commerce in effect at the time that interest is calculated. Interest on the new Target bonds is to be paid on a quarterly basis. Target is also required to make a partial redemption payments with respect to the new Target bonds in the aggregate amount of $300,000 in the event that Target holds cash with a value greater than $400,000, as reported in its quarterly financial statements;
  
  
• Target currently holds 55,200 common shares of Olympia Financial Group Inc. ("OFGI") and has agreed to sell all of its OFGI common shares at $29.00 per common share of OFGI, for aggregate proceeds of $1,600,800. Proceeds from the sale of the OFGI common shares shall be used to fund the cash payments to be made to holders of outstanding Target bonds;
  
  
• Target currently holds 5,600 common shares of Bearspaw Tree Farm Inc. ("BTFI") and has agreed to sell all of its BTFI common shares at $80.00 per common share of BTFI, for aggregate proceeds of $448,000. Proceeds from the sale of the BTFI common shares shall be used to fund the cash payments to be made to holders of outstanding Target bonds; and
  
  
• The BTFI common shares were previously valued at $1,168,500 as reported in Target's Q3-2017 financial statements. Target recently became aware of a tender offer by BFTI to holders of BTFI common shares with a purchase price of $80 per BFTI common share. Target has adjusted its valuation of the BTFI common shares held to match the purchase price offered by BFTI to holders of BFTI common shares.