Capital Partners Corporation to Nominate Four Highly Qualified Directors for DealNet Capital Corp. Board to Drive Value Creation for All Shareholders

March 30, 2020 4:39 PM EDT | Source: Capital Partners Corporation

Toronto, Ontario--(Newsfile Corp. - March 30, 2020) - Capital Partners Corporation ("Capital Partners") today announced that it has nominated four highly qualified nominees (the "Nominees") for election to the Board of Directors (the "Board") of DealNet Capital Corp. ("DealNet" or the "Company") at the Company's 2020 annual general meeting scheduled for May 7, 2020, in accordance with the Company's Advanced Notice By-Law. Capital Partners is the owner of 14,602,726 common shares of the Company (representing approximately 5.14% of DealNet's issued and outstanding shares) and its Chief Executive Officer, Dr. Steven Small, previously served as Executive Chairman of DealNet from July 2015 until March 2018. In addition, Municipal Home Service Inc., the owner of 10,854,028 common shares of the Company (representing approximately 3.82% of DealNet's issued and outstanding shares) has agreed to support the Nominees. Each Nominee is committed to overseeing DealNet for the benefit of all shareholders.

"Since 2018, DealNet has failed to create value for its shareholders," said Capital Partners CEO, Dr. Steven Small. "Shareholders have invested their hard-earned money hoping that DealNet would succeed. Unfortunately, DealNet has floundered and languished and shareholders simply are not seeing the returns that all of us deserve. Long-term value creation and the associated increase in share price and liquidity can and must begin today and I am fully confident that renewing the Board by adding new and highly qualified directors will lead to rapid improvements at DealNet."

Success for DealNet Requires Change

Capital Partners believes that change in the boardroom is required if shareholders are to expect improved results. The Nominees all have relevant operating experience that will provide immense value to DealNet. They bring best practices and expertise from successful consumer finance businesses and experience in finance, corporate development, corporate governance and the capital markets.

Capital Partners believes these Nominees are well positioned to provide DealNet with the Board leadership and oversight it needs to help the Company realize its vision and potential for its shareholders.

"Upon election to the Board, Capital Partners' Nominees intend to focus on shareholder value and commence an immediate review and enhancement of all internal and management support systems," shared Dr. Steven Small. "The renewed Board will use their decades of experience to assess multiple avenues of increased origination of new business to optimize DealNet's current lagging path to profitability. This will entail scrupulously assessing business operations and management structure and performance. We will implement structures to optimize corporate performance and to support and empower the valued and high performing incumbent individuals who currently diligently strive to serve DealNet and its stakeholders."

Capital Partners' Nominees are:

  • Gary Goodman, a Chartered Accountant and experienced public company director who earned his ICD.D professional independent director designation at the University of Toronto's Rotman School of Business;
  • Mark Silver, the President of Optus Capital Corporation, Chairman of the Board of Atrium Mortgage Investment Corporation, Founder of Direct Energy and National Home Services and an experienced public company director;
  • Shail Silver, the Chief Executive Officer of Toronto Developers Ltd., a leading provider of equipment financing to Ontario's home building community; and
  • Steven Small, CEO of Capital Partners, former Executive Chairman of DealNet, co-founder of Element Financial Corporation and an experienced public board member who earned his ICD.D professional independent director designation at the University of Toronto's Rotman School of Business;

Full bios for the Nominees are as follows:

Gary Goodman

Gary Goodman currently sits on the Board of Trustees & chairs the Audit & Risk Committee of Boardwalk Real Estate Investment Trust. Previously, Mr. Goodman was Executive Vice-President of Reichmann International Development Corporation and International Property Corporation between December 2007 and June 2010. Mr. Goodman has also held the roles of CFO (December 2001 to November 2006) and President and CEO (from December 2006 to December 2007) of IPC US REIT which was sold to Behringer Harvard in December 2007 for an aggregate value of US$1.4 billion. Prior thereto, Mr. Goodman also served as a Director and Senior Vice President of Olympia & York Developments Limited, as well as a Director of Campeau Corporation, Trilon Financial Corporation, Huntingdon Capital Corporation ( Chair of the Board), Catellus Corporation, Brightpath Early Learning Inc. and Brinco Mining. Mr. Goodman is a member of the Advisory Board of Vision Opportunity Fund, a limited partnership that invests in real estate securities. Mr. Goodman became a Chartered Accountant (Gold Medalist) in 1967 and has a Bachelor of Commerce degree from the University of Toronto. He is also a graduate of the Directors Education Program, which is jointly developed by the Institute of Corporate Directors and the Rotman School of Management of the University of Toronto.

Mark Silver

Mark L. Silver is President of Optus Capital Corporation and also Chairman of the Board at Atrium Mortgage Investment Corporation. Mr. Silver was founder and Chief Executive Officer of National Home Services ("NHS"), a leading provider of home services in Canada with over 300,000 customers and which was sold to Reliance Home Comfort in 2014 for $505 million. Mr. Silver has made significant real estate investments in both development stage and income producing properties in the residential, commercial and industrial sectors over his 35 year business career. Mr. Silver was a founding partner and Chief Executive Officer of Universal Energy which was sold in 2009 to Just Energy Group Inc. He co-founded Direct Energy Marketing and grew the company's revenues to over $1.3 billion before the company was sold to Centrica PLC (also known as British Gas) in 2000.

Shail Silver

Shail Silver held multiple roles at Universal Energy Group and NHS, a division of Just Energy Group between 2005 and 2014. These roles included Vice President of Business Development at NHS and President of Just Eco Savings, a division of Just Energy Group. NHS was sold to Reliance Home Comfort for $505 million in 2014. Mr. Silver founded Toronto Developers Ltd. in 2014 and currently serves as CEO and director. Toronto Developers Ltd. is a leading provider of consumer equipment financing to Ontario's home building community. Mr. Silver sits on the Innovation Committee for Kids Help Phone. He is also an IFR licensed pilot and graduate of the University of Western Ontario.

Steven Small

Dr. Steven Small is the CEO of Capital Partners Corporation. A serial entrepreneur, Dr. Small has extensive investor, founder, executive and director experience including in the lease finance and investment sectors. Dr. Small was a cofounder and director of Newcourt Credit Group which became the world's second largest independent global asset finance business. Dr. Small was also a co-founder and the Executive Vice Chairman of Element Financial Corporation, a multi billion dollar asset finance firm and served as Executive Vice Chairman of Hampton Financial Corporation, a boutique investment dealer and wealth manger. Dr. Small was previously the Executive Chairman of Dealnet and was instrumental in growing its consumer finance portfolio from $1.9 million to over $175 million during his tenure. Dr. Small earned the designation of ICD.D from the University of Toronto's Rotman Management School program for the Institute of Corporate Directors. Dr. Small's career began as a practicing Anaesthesiologist having earned degrees and designations including D.D.S., B.Sc.D (Anaesthesia) and Fellow, American Society of Anesthesiology and a Diplomat of the American National Board of Anesthesiology. During his healthcare career he was Associate Professor and Head of the Department of Anaesthesia at the University of Toronto Faculty of Dentistry.

The information contained in this news release does not and is not meant to constitute a solicitation of a proxy within the meaning of applicable securities laws. Shareholders are not being asked at this time to execute a proxy in favour of the Nominees. In connection with the Company's annual meeting to be held on May 7, 2020, Capital Partners may file and mail a dissident information circular in due course in compliance with applicable securities laws.

Capital Partners has engaged Dentons Canada LLP as legal advisor.

Forward Looking Statement

This news release contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements and information, other than statements of historical fact, included herein are forward-looking statements, including, without limitation, statements regarding activities, events or developments that Capital Partners expects or anticipates may occur in the future. These forward-looking statements can be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or similar words and expressions or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur or, even if they do occur, will result in the performance, events or results expected. We caution readers not to place undue reliance on forward-looking statements contained herein, which are not a guarantee of performance, events or results and are subject to a number of risks, uncertainties and other factors that could cause actual performance, events or results to differ materially from those expressed or implied by such forward-looking statements.

Readers are cautioned that all forward-looking statements involve known and unknown risks and uncertainties, including those risks and uncertainties detailed in the continuous disclosure and other filings of DealNet, copies of which are available on the System for Electronic Document Analysis ("SEDAR") at www.sedar.com. We urge you to carefully consider those risks and uncertainties. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. Unless expressly stated otherwise, the forward-looking statements included herein are made as of the date of this news release and Capital Partners disclaims any obligation to publicly update such forward-looking statements, except as required by applicable law.

Contact Information
Capital Partners Corporation
1-866-395-0507

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