Difference Capital Announces Second Quarter 2013 Results

TORONTO, ONTARIO--(Marketwired - Aug. 30, 2013) - Difference Capital Financial Inc., a leading Canadian specialty financial services company, ("DCF") (TSX VENTURE:DCF) today announces its financial results for the quarter ended June 30, 2013. Highlights, including the public offerings initiated during this period, are:

• DCF raised capital of over $101,000,000
• Advisory services continue to grow
• Tom Liston joined as a Managing Partner

During the summer, Difference Capital closed its previously announced public offering of common shares of the Company pursuant to which the Company sold 12,000,000 shares with gross proceeds of $45,000,000. The common share offering was completed following the closing of the previously announced offering of convertible unsecured subordinated debentures for aggregate gross proceeds of $56,079,000. The total gross aggregate capital raised from the two public offerings was $101,079,000.

Advisory services revenue to DCF amounted to $180,000 for the quarter, bringing the total revenue to $424,000 in 2013. Advisory clients at quarter end totaled 13, up from 6 at January 1, 2013.

Additionally, as of July 1, 2013, DCF is to receive 40% of all advisory revenue generated by Difference Capital Management (DCM"), whether from investee companies or not. "We are committed to the alignment of interests between DCF and DCM and our business model ensures DCF benefits from the expertise of management," said Neil Johnson, Chief Executive Officer.

Revenue for the second quarter was ($1,110,435), down from $1,977,441 in the previous quarter. This resulted in a net loss of ($2,056,154) compared with net income of $869,668 in the previous quarter. DCF's valuation policy requires mark-to-market for its publicly traded positions while private companies are generally held at cost until there is external evidence to support a change in valuation. This quarter was impacted in large part by four public positions being marked to market, resulting in a temporary unrealized loss, some of which have subsequently rebounded. These unrealized losses can be explained in part by Q2 market conditions, as the S&P/TSX Venture Composite Index fell 19% during this quarter.

This summer Difference Capital also welcomed Tom Liston as Managing Partner of DCM. Mr. Liston is a leading Canadian technology analyst and his presence adds to the growing bench-strength of the Difference team.

Executive Chairman Michael Wekerle stated, "Our $100,000,000 of new capital well positions us to take advantage of the renewed interest in growth technology, media and healthcare companies in Canada and around the world. We are confident in the continued growth of our investee companies and remain excited about the unique advisory business model we bring to the marketplace."

The interim unaudited June 30, 2013 financial statements and management's discussion and analysis are available at www.sedar.com

About Difference Capital Financial Inc.

Difference Capital Financial Inc. is a public-listed, Toronto-based specialty finance company focused on creating shareholder value through strategic investments in, and advisory services for, growth companies, particularly in the technology, media and healthcare sectors, as well as opportunistic investments in undervalued financial assets and real property.

Cautionary Notes

This release includes forward-looking statements regarding DCF and its business. Such statements are based on the current expectations and views of future events of DCF's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release and the anticipated growth of the DCF business, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding achieving investment objectives, economic factors and the equity markets generally and many other factors beyond the control of DCF. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and DCF undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.