Author: Andrew Woo

TORONTO, February 8, 2021

Looking back at what was a challenging year across the globe, Bridging Finance Inc. (“Bridging”) was able to navigate these hurdles and the Funds celebrated a few key milestones and were recognized for their industry leading risk adjusted returns. The Funds also delivered strongly on their objective of providing clients with consistent and uncorrelated returns even against an economic back drop which saw historically high levels of volatility.

A brief recap of some of Bridging’s 2020 accomplishments:

• • Bridging Indigenous Impact Fund was awarded 2^nd place for the Best 1 Year Return in the Private Debt category at the 2020 Canadian Hedge Fund Awards
  • Bridging Private Debt Institutional Fund was awarded 3^rd place for the Best 3 Year Return in the Private Debt category at the 2020 Canadian Hedge Fund Awards
  • Bridging Private Debt Institutional Fund was awarded 2^nd place for the Best 5 Year Return in the Private Debt category at the 2020 Canadian Hedge Fund Awards
  • Bridging Income Fund LP celebrated its 7-year anniversary in October 2020
  • Bridging Mid-Market Debt Fund LP celebrated its 3-year anniversary in October 2020

Below is a summary of the net returns as of December 31, 2020.

Bridging Income Fund LP (Class F CAD)

*Since Inception November 2013

Bridging Mid-Market Debt Fund LP (Class F CAD)

*Since Inception November 2017

Bridging Indigenous Impact Fund (Class F CAD)

*Since Inception May 2019

Bridging Private Debt Institutional Fund (Class I CAD)

*Since Inception July 2015

 Bridging Fern Alternative Credit Fund (Class F CAD)

*Since Inception June 2019

Bridging would like to take the opportunity to thank its clients and partners for their continued support and Bridging is even more committed in its mission to deliver the stable and uncorrelated returns clients have become accustom to.

Please feel free to contact us if you have any questions.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer: The Bridging Indigenous Impact Fund, Bridging Private Debt Institutional Fund, Bridging Income Fund, Bridging Mid-Market Debt Fund and the Bridging Fern Alternative Credit Fund (the “Funds“) are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (February/2021)

Bridging Finance Inc. (the “Manager’) is pleased to confirm that on December 18, 2020 and December 21, 2020, at a special meeting of unitholders, unitholders of the Bridging Income Fund LP, Bridging Income RSP Fund, Bridging Mid-Market Debt Fund LP, Bridging Mid-Market Debt RSP Fund and Bridging Indigenous Impact Fund voted overwhelmingly in favour of the following changes:

The purpose of the changes are to increase the protection of unitholders from the ongoing effects of COVID-19 and its potential related impacts and to ensure greater consistency across the funds managed by the Manager.

Please feel free to contact us for any further questions.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

TORONTO, January 8, 2021 – After a challenging year globally, Bridging Finance Inc. (“Bridging”) is excited by the opportunity for continued growth in 2021. With the hope and prospect of a sustained economic recovery on the horizon, Bridging is actively looking for new lending opportunities across all our Funds. The Funds celebrated some significant milestones in 2020 with the Bridging Income Fund celebrating its 7-year anniversary while the Bridging Mid-Market Debt Fund celebrated its 3-year anniversary. The Bridging Indigenous Impact Fund, which provides capital for investment opportunities where there is an Indigenous focus of the deal, celebrated its 1-year anniversary in April and was also awarded 2^nd Place in the 1 Year Return category at the Canadian Hedge Fund Awards in 2020.

The Funds continue to target lending opportunities to companies looking for between $500,000 and $60,000,000+ in financing in the form of operating lines, term loans, and accounts receivable financing. Typical profiles include:

• Unique, short-term, special situations
• Growth capital with visibility on likely refinancing  
• Transition financing
• Insufficient working capital provided by existing lender
• Non-dilutive capital

About Bridging Finance Inc.

Established in 2012, Bridging Finance is one of Canada’s leading alternative credit investment management firms and currently manages approximately over $2 billion of assets. Bridging Finance provides middle-market North American companies with alternatives to the financing options offered by traditional lenders. Lending proceeds, typically ranging from $3 million to upwards of $50 million, are used by companies to address needs such as restructuring existing debt, providing working capital for growth, supporting inventory purchases and financing expenditures and acquisitions/buyouts.

Please visit the offering memorandum of the Funds for any further information. Performance of the Funds is not guaranteed, and past performance is not indicative of any future performance.

For further information or lending opportunities, please contact us at 416-906-0395 or gmarr@bridgingfinance.ca

December 10, 2020

Bridging Finance Inc. (“Bridging Finance”) today announced the appointment of two accomplished finance and legal professionals to its Board of Directors.

David Allgood is a senior-level legal and business executive with extensive experience in financial services. Mr. Allgood most recently served as senior counsel to Dentons LLP, providing the global law firm with strategic business development advice and insight. Prior to that, he spent 15 years as executive vice president and General Counsel at the Royal Bank of Canada. Mr. Allgood has been repeatedly recognized as an innovator and leader in the North American in-house legal profession and also serves as a member of the Queen’s University Board of Trustees and as a director of Trillium Health Partners, one of Canada’s premier acute-care hospitals.

Hugh O’Reilly currently serves as the President and Chief Executive Officer of Acuity Global, a boutique consulting firm that provides advice on strategy to insurance companies, investment managers, real estate developers and start-ups. Mr. O’Reilly is the former President and CEO of OPTrust, one of Canada’s leading pension fund managers, where he led an organizational transformation, implemented a new investment strategy and launched a new defined-benefit pension plan for not-for-profit organizations. He is also the executive director of Innovate Cities, a senior advisor at the Global Risk Institute and a senior fellow at the C.D. Howe Institute. Mr. O’Reilly also serves on a number of boards, including Vancity Community Investment Bank, and Namerind, a not-for-profit aboriginal housing corporation.

“I’m delighted to welcome David and Hugh to our Board of Directors,” said David Sharpe, CEO, Bridging Finance. “Their extensive financial services experience, strategic insight and strong leadership will add significant and immediate value to our Board and provide invaluable guidance as we continue to grow our business.”

Below is a link to the news release.

https://www.newswire.ca/news-releases/bridging-finance-appoints-david-allgood-and-hugh-o-reilly-to-board-of-directors-880971122.html

About Bridging Finance

Established in 2012, Bridging Finance is one of Canada’s leading alternative credit investment management firms and currently manages approximately $2 billion of assets. Bridging Finance provides middle-market North American companies with alternatives to the financing options offered by traditional lenders. Lending proceeds, typically ranging from $3 million to upwards of $50 million, are used by companies to address needs such as restructuring existing debt, providing working capital for growth, supporting inventory purchases and financing expenditures and acquisitions/buyouts.

Please feel free to contact us for any further questions.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

December 8, 2020

Bridging Finance Inc. (“Bridging Finance“) recently sent out Information Circulars and Proxy Forms to all Unitholders in the Bridging Income Fund, Bridging Mid-Market Debt Fund and Bridging Indigenous Impact Fund relating to the following proposed changes. An FAQ on the proposed changes is also available below.

Bridging Finance Inc. – Notice of Meeting & Information Circular and Form of Proxy FAQ

The main point on the Bridging Income Fund (LP and RSP), Bridging Indigenous Impact Fund and the Bridging Mid-Market Debt Fund (LP and RSP) is to change the notice period from monthly on 30 days notice to monthly on 90 days notice.

For the Bridging Income Fund (LP and RSP), there is also a proposal to eliminate the “catch-up fee” and set the Hurdle Rate to 6% which is in line with the Bridging Indigenous Impact Fund and Bridging Mid-Market Debt Fund.

Why are these changes being proposed? (Also in the FAQ, Question #4)

 The proposed changes to the funds aim to increase the protection of unitholders from the ongoing effects of COVID-19 and its potential related impacts. Further, these changes are being proposed to ensure greater consistency across the funds managed by Bridging Finance Inc.

1. The changes to the redemption notice period, and the ability for the manager to accept or reject redemption requests, are being made for the following reasons:
   • The funds will be better able to manage liquidity to meet unitholder redemption frequencies;
   • It will provide the manager with increased flexibility in fulfilling the investment objective and utilizing the investment strategies of the funds;
   • Increased ability to meet investor expectations with respect to liquidity demands;
   • Enhanced liquidity risk management; and
   • Enhanced cash management ability in order to better protect unitholders from unusual fluctuations in redemption requests from unitholders.
2. With respect to the change in incentive allocation payment to the general partner of the Bridging Income Fund LP and Bridging Income RSP Fund, the general partner believes that: (i) eliminating the “catch-up” incentive allocation currently payable to the general partner; and (ii) amending the defined “hurdle rate” will be beneficial to unitholders for the following reasons:
   • Simplification of the incentive allocation structure and consistency of the structure across funds managed by the manager;
   • Increased fairness and certainty to limited partners in calculating the incentive allocation structure.

The changes that are being voted on are as follows (they are also highlighted in the attached FAQ):

Bridging Income Fund LP:

1. To increase the notice period required to submit redemption requests by unitholders of the fund from 30 days to 90 days.
2. To amend the incentive allocation payable to the General Partner by:
   • (i) eliminating the “catch-up” incentive allocation payable to the general partner such that all net income of the Fund once such “Hurdle Rate” (as defined in subsection (ii)) shall be allocated as to 80% to the limited partners of the Fund and as to 20% to the general partner; and
   • (ii) amending the definition of “Hurdle Rate” in the Limited Partnership Agreement to “a Total Return per Unit of six percent (6%), as determined on the first business day of each fiscal year and applicable for the entire fiscal year”.
3. To make certain other amendments to the Limited Partnership Agreement consequential to the foregoing.

Bridging Income Fund RSP:

1. To increase the notice period required to submit redemption requests by unitholders of the fund from 30 days to 90 days.
2. To permit the manager, in its sole discretion, to accept or reject redemption requests, where the manager intends to accept redemption requests in circumstances where, in the view of the manager, it would not be prejudicial to the fund to do so.
3. To amend the performance fee payable to the manager by:
   • (i) eliminating the “catch-up” performance fee payable to the manager such that of all return of the Fund once such “Hurdle Rate” (as defined in subsection (ii)), an amount equal to 20% of such return shall be payable to the manager as a performance fee; and
   • (ii) amending the definition of “Hurdle Rate” to “a Total Return per Unit of six percent (6%), as determined on the first business day of each fiscal year and applicable for the entire fiscal year”.
4. To make certain other amendments to the Trust Agreement consequential to the foregoing.

Bridging Indigenous Impact Fund:

1. To increase the notice period required to submit redemption requests by unitholders of the fund from 30 days to 90 days
2. To permit the manager, in its sole discretion, to accept or reject redemption requests, where the manager intends to accept redemption requests in circumstances where, in the view of the manager, it would not be prejudicial to the Fund to do so.
3. To make certain other amendments to the Trust Agreement consequential to the foregoing.

Bridging Mid-Market Debt Fund LP:

1. To increase the notice period required to submit redemption requests by unitholders of the fund from 30 days to 90 days
2. To permit the manager, in its sole discretion, to accept or reject redemption requests, where the manager intends to accept redemption requests in circumstances where, in the view of the manager, it would not be prejudicial to the Fund to do so.
3. To make certain other amendments to the Limited Partnership Agreement consequential to the foregoing.

Bridging Mid-Market Debt Fund RSP:

1. To increase the notice period required to submit redemption requests by unitholders of the fund from 30 days to 90 days.
2. To permit the manager, in its sole discretion, to accept or reject redemption requests, where the manager intends to accept redemption requests in circumstances where, in the view of the manager, it would not be prejudicial to the Fund to do so.
3. To make certain other amendments to the Trust Agreement consequential to the foregoing.

For further details on the changes and information on how to vote, please contact us below and we thank you for your continued support.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (December/2020)

November 12, 2020

Bridging Finance Inc. (“Bridging“) would like to congratulate our partners in the Mi’kmaq First Nations on a truly historic day for Indigenous communities across Canada. The partnership between the Mi’kmaq First Nations Coalition and Premium Brands to purchase Clearwater Seafoods worth over $1B is “the single largest investment in the seafood industry by any Indigenous group in Canada,” said a news release jointly issued by the Coalition and Clearwater. The release continues by saying “This strategic investment represents a transformational change in Canadian fisheries, catapulting First Nations into a leading global position in the seafood industry”. From David Sharpe, CEO of Bridging Finance and member of the Mohawks of the Bay of Quinte First Nation: “We are proud of our Mi’kmaq partners in leading the way in Indigenous economic reconciliation in Canada. This transaction serves as a model for engagement and execution in creating wealth for Indigenous groups and a stronger Canada.”

Bridging is a proud leader in the fight for economic reconciliation and is thrilled to see the continued momentum of investment and inclusion of Indigenous communities in the growth of the Canadian economy. The Bridging Indigenous Impact Fund, which was recently awarded 2nd place in the Best 1 Year Return in the Private Debt category at the 2020 Canadian Hedge Fund Awards, has been a catalyst for Indigenous economic development and reconciliation. Across Bridging’s suite of funds, approximately $600 million in First Nation loans and $100 million in Inuit loans have been deployed throughout Canada and we are excited about the countless opportunities that still exist.

Congratulations again to the Mi’kmaq First Nations!

Please contact us if you would like any further information and we thank you for your continued support.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Bridging Indigenous Impact Fund is generally exposed to the following risks. See the offering memorandum of the Bridging Indigenous Impact Fund for a description of these risks: Speculative Investments; Limited Operating History for the Trust; Distributions and Allocations; Class Risk; Repayment of Certain Distributions; Dependence of Manager on Key Personnel; Reliance on the Manager; Possible Effect of Redemptions; Tax Liability; Potential Indemnification Obligations; Not a Public Mutual Fund; Changes in Investment Strategies; Valuation of the Trust’s Investments; Lack of Independent Experts Representing Trustee’s; No Involvement of Unaffiliated Selling Agent; General Economic and Market Conditions; Liquidity of Underling Investments; Credit Risk; Impaired Loans; No Insurance; Joint Ventures and Co-Investments; Litigation; Fixed Income Securities; Equity Securities; Possible Correlation With Traditional Investments; Idle Cash; Currency Risk; Concentration.

The Bridging Indigenous Impact Fund is offered on a private placement basis pursuant to an offering memorandum and is only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about the Bridging Indigenous Impact Fund including its investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Bridging Indigenous Impact Fund and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication does not contain an offer to sell or solicitation to purchase securities of the Bridging Indigenous Impact Fund. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not residents in Canada should contact their financial advisor to determine whether securities of the Bridging Indigenous Impact Fund may be lawfully in their jurisdiction.

Bridging Finance Inc. is the Manager of the Bridging Indigenous Impact Fund. (November/2020)

October 20, 2020

Bridging Finance Inc. (“Bridging Finance“) is pleased to announce that it has been recognized with awards in each of the 3 Private Debt categories at the 2020 Canadian Hedge Fund Awards. The Bridging Indigenous Impact Fund and Bridging Private Debt Institutional Fund LP (“the Funds”) were awarded the following 2020 Canadian Hedge Fund Awards:

Best 1 Year Return

• • 2^nd Place – Bridging Indigenous Impact Fund

Best 3 Year Return

• • 3^rd Place – Bridging Private Debt Institutional Fund LP

Best 5 Year Return

• • 2^nd Place – Bridging Private Debt Institutional Fund LP

“We are extremely pleased to have these funds recognized by the Canadian Hedge Fund Awards as leading funds in the private debt sector”, said David Sharpe, Chief Executive Officer of Bridging Finance. “We are especially proud of the recognition received by the Bridging Indigenous Impact Fund given this is truly a one-of-a-kind socially responsible investment fund focused on the economic reconciliation of Indigenous communities across Canada. These awards further solidify Bridging’s position as a leading alternative credit investment manager in Canada. We appreciate the confidence placed in the funds by financial advisors and their clients and we look forward to the continued success of the funds and other products managed by Bridging”, added Sharpe.

About Bridging Finance Inc.

Established in 2012, Bridging Finance is one of Canada’s leading alternative credit investment management firms and currently manages approximately $1.8 billion of assets. Bridging Finance provides middle-market North American companies with alternatives to the financing options offered by traditional lenders. Lending proceeds, typically ranging from $3 million to upwards of $50 million, are used by companies to address needs such as restructuring existing debt, providing working capital for growth, supporting inventory purchases and financing expenditures and acquisitions/buyouts.

Please visit the offering memorandum of the Funds for any further information. Performance of the Funds is not guaranteed and past performance is not indicative of any future performance.

Please feel free to contact us if you have any questions and we thank you for your continued support.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (October/2020)

September 18, 2020

As first communicated on August 17, Bridging Finance Inc. (“Bridging“) is pleased to confirm that all remaining pending redemptions from the Bridging Income Fund which had an initial trade date of April 30, 2020 and May 29, 2020 will be paid out by the end of September using the trade date of August 31, 2020.

Bridging is also pleased to confirm the remaining  pending redemptions from the Bridging Mid-Market Debt Fund which had an initial trade date of May 29, 2020 will also be paid out by the end of September with a trade date of August 31, 2020.

As a reminder, the Bridging Income Fund LP, Bridging Income RSP Fund, Bridging Mid-Market Debt Fund LP and Bridging Mid-Market Debt RSP Fund are all open for purchase and redemption orders.

We thank you for your continued support during these unprecedented times as we remain focused on managing the Funds liquidity and preserving unitholder value all while continuing to deliver the consistent and uncorrelated returns your clients have become accustomed to.

Please feel free to contact us if you have any questions.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (September/2020)

By Diane Amato for Royal Bank of Canada (excerpt from RBC’s website)
June 24, 2020

Link to full article

August 17, 2020

Redemption Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)

Lifting of Temporary Suspension on Redemptions

Bridging Finance Inc. (“Bridging“) is pleased to announce that the temporary suspension of redemptions in the Bridging Income Fund and Bridging Mid-Market Debt Fund (the “Funds“) will be lifted effective Monday, August 17, 2020. As such, the Bridging Income Fund LP, Bridging Income RSP Fund, Bridging Mid-Market Debt Fund LP and Bridging Mid-Market Debt RSP Fund will re-open for purchases and redemption orders as of Monday, August 17, 2020.

New Redemption Requests

Given the continued uncertainties surrounding the COVID-19 pandemic and the potential effects of a second wave of COVID-19 cases on financial markets, Bridging will be implementing a temporary limit on monthly redemptions of CAD$10,000,000 on the Bridging Income Fund and CAD$5,000,000 on the Bridging Mid-Market Debt Fund.

These limits will be inclusive of all redemptions received within the LP and RSP versions of the Funds and are being temporarily placed in order to ensure unitholders are adequately protected. In the event that the monthly redemptions received by the Funds exceed the temporary limits mentioned above, the redemption requests will be processed on a pro-rata basis to ensure all redemption requests are treated equally amongst all unitholders. In these cases, any redemption amount not processed during the month will be cancelled and will need to be re-submitted.

Existing Redemption Requests (Trade Date of March 31, April 30 and May 31)

In regards to the Bridging Mid-Market Debt Fund (LP and RSP), Bridging is pleased to announce that sufficient liquidity has been created by Bridging in order to process all of the outstanding redemption requests. All outstanding requests will be processed on the August 31, 2020 trade dates and unitholders will receive their redemption proceeds near the end of September 2020.

In regards to the Bridging Income Fund (LP and RSP), Bridging is also pleased to announce that as a result of certain upcoming loan maturities and the anticipated sale of certain loans at full face-value, absent any unexpected situations or events, Bridging should be in a position to process all of the outstanding redemptions on the August 31, 2020 trade date with the redemption proceeds being paid to unitholders near the end of September 2020.

We thank you for your support during these unprecedented times as we remain focused on managing the Funds liquidity and preserving unitholder value all while continuing to deliver the consistent and uncorrelated returns your clients have become accustomed to.

Please feel free to contact us if you have any questions.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (August/2020)

August 11, 2020

Bridging Finance Inc. (“Bridging“) is taking important steps towards streamlining operations, improving the ease of doing business and reducing costs and redundancies. Effective October 31, 2020, Bridging will be changing the administrator on the Bridging Income Fund from RBC Investor & Treasury Services to SS&C Fund Administration Company who is the current administrator for all other Bridging funds. Bridging will be sending out another communication with further details on this change in the coming weeks. Notices have also been mailed out to all clients informing them of this change.

Copies of the notices can be found below.

Please contact us if you would like any further information and we thank you for your continued support.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

Andrew Woo, Director, Investor and Dealer Relations – C: (416) 456-1283, awoo@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

August 10, 2020

In Bridging Finance Inc.’s (“Bridging“) continued efforts to raise awareness and build support for economic reconciliation of Indigenous communities in Canada, Bridging recently launched an advertising campaign in The Globe and Mail. Below is a half page ad that was published in the Saturday, August 1 edition of The Globe and Mail which will be followed by a month long digital campaign in the Business section.

Please contact us if you would like any further information and we thank you for your continued support.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Bridging Indigenous Impact Fund is generally exposed to the following risks. See the offering memorandum of the Bridging Indigenous Impact Fund for a description of these risks: Speculative Investments; Limited Operating History for the Trust; Distributions and Allocations; Class Risk; Repayment of Certain Distributions; Dependence of Manager on Key Personnel; Reliance on the Manager; Possible Effect of Redemptions; Tax Liability; Potential Indemnification Obligations; Not a Public Mutual Fund; Changes in Investment Strategies; Valuation of the Trust’s Investments; Lack of Independent Experts Representing Trustee’s; No Involvement of Unaffiliated Selling Agent; General Economic and Market Conditions; Liquidity of Underling Investments; Credit Risk; Impaired Loans; No Insurance; Joint Ventures and Co-Investments; Litigation; Fixed Income Securities; Equity Securities; Possible Correlation With Traditional Investments; Idle Cash; Currency Risk; Concentration.

The Bridging Indigenous Impact Fund is offered on a private placement basis pursuant to an offering memorandum and is only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about the Bridging Indigenous Impact Fund including its investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Bridging Indigenous Impact Fund and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication does not contain an offer to sell or solicitation to purchase securities of the Bridging Indigenous Impact Fund. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not residents in Canada should contact their financial advisor to determine whether securities of the Bridging Indigenous Impact Fund may be lawfully in their jurisdiction.

Bridging Finance Inc. is the Manager of the Bridging Indigenous Impact Fund. (August/2020)

August 7, 2020

Redemption Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)

With the closing of further loans at par, Bridging Finance Inc. (“Bridging”) is now in a position to payout the remaining outstanding redemptions from the Bridging Mid-Market Debt Fund with an initial trade date of April 30, 2020 and a further 11% of the outstanding redemptions on the Bridging Income Fund with an initial trade date of April 30, 2020. The redemptions are expected to be paid out by the end of next week.

This takes the total repayment of April 30 redemptions on the Bridging Mid-Market Debt Fund to 100% while the Bridging Income Fund has paid out approximately 27%.

Bridging is also in the process of finalizing the last payment of outstanding redemptions from the Bridging Mid-Market Debt Fund with a trade date of May 29, 2020 and expect to have this completed by the end of August.

In the coming weeks, Bridging will be in the process of selling more loans at par within the Bridging Income Fund and we hope to have the temporary suspension removed by the beginning of September.

As a reminder, the LP versions of the Bridging Income Fund and Bridging Mid-Market Debt Fund are open for purchase subscriptions.

We thank you for your support during these unprecedented times as we remain focused on working through these redemptions while continuing to deliver the consistent  and uncorrelated returns your clients have become accustomed to.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (August/2020)

July 20, 2020

Redemption Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)

Bridging Finance Inc. (“Bridging“) closed on the sale of another loan at par this week in the Bridging Mid-Market Debt Fund and will be paying out approximately a further 29% of the outstanding April 30 redemptions. The redemptions will be paid this Wednesday and clients should receive their proceeds by the end of this week. This takes the total repayment of April 30 redemptions on the Bridging Mid-Market Debt Fund to 48% while the Bridging Income Fund has paid out 19%.

Upon the repayment of certain loans and syndicated loan proceeds being received by Bridging in the coming weeks, Bridging will continue paying out the outstanding redemptions as these events occur.

As a reminder, the LP versions of the Bridging Income Fund and Bridging Mid-Market Debt Fund are open for purchase subscriptions.

We thank you for your support during these unprecedented times as we remain focused on working through these redemptions while continuing to deliver the consistent  and uncorrelated returns your clients have become accustomed to.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (July/2020)

July 17, 2020

Bridging Finance Inc. (“Bridging“) recently celebrated an exceptional first year for the Bridging Indigenous Impact Fund (“BIIF“) with a 1-year net return of 10.25% as of May 29, 2020. The BIIF is a unique Socially Responsible Fund dedicated to financing Indigenous economic development.

Bridging has established itself as the preeminent bridge lender to First Nations in Canada. Since 2014, Bridging has successfully deployed over $500 million with First Nations and $100 million to Inuit and is pleased to offer this unique investment opportunity to the Canadian market through the BIIF.

Here are some key highlights of investing in the growth of First Nations

• First Nations community wealth creation is about increasing economic well-being and quality of life for a community in a way that reflects the community’s social, cultural and environmental values.
• Financing structure is adaptable to meet development needs.
• Major Financial Institutions are becoming more involved in the space and, in almost all cases, provide the replacement financing at the end of Bridging’s term.
• Projects have included housing, renewable energy, commercial development, facility production & retail opportunities.

Below are some further examples of loans Bridging has made to First Nations.

In addition to supporting the economic growth of First Nations across Canada, clients in the BIIF have also enjoyed a strong return on their investment highlighted in returns below.

Bridging Indigenous Impact Fund Class F (May 2020)

 *Since Inception May 2019

As a reminder, the BIIF is open for subscription purchases.

Bridging Indigenous Impact Fund Class F – Fact Sheet

Please contact us if you would like any further information and we thank you for your continued support.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The BIIF is generally exposed to the following risks. See the offering memorandum of the BIIF for a description of these risks: Speculative Investments; Limited Operating History for the Trust; Distributions and Allocations; Class Risk; Repayment of Certain Distributions; Dependence of Manager on Key Personnel; Reliance on the Manager; Possible Effect of Redemptions; Tax Liability; Potential Indemnification Obligations; Not a Public Mutual Fund; Changes in Investment Strategies; Valuation of the Trust’s Investments; Lack of Independent Experts Representing Trustee’s; No Involvement of Unaffiliated Selling Agent; General Economic and Market Conditions; Liquidity of Underling Investments; Credit Risk; Impaired Loans; No Insurance; Joint Ventures and Co-Investments; Litigation; Fixed Income Securities; Equity Securities; Possible Correlation With Traditional Investments; Idle Cash; Currency Risk; Concentration.

The Bridging Indigenous Impact Fund is offered on a private placement basis pursuant to an offering memorandum and is only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about the BIIF including its investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the BIIF and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication does not contain an offer to sell or solicitation to purchase securities of the BIIF. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not residents in Canada should contact their financial advisor to determine whether securities of the BIIF may be lawfully in their jurisdiction.

Bridging Finance Inc. is the Manager of the Bridging Indigenous Impact Fund. (July/2020)

July 17, 2020

Redemption Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)

With Bridging Finance Inc. (“Bridging“) closing on the sale of another loan this week at par, the Bridging Income Fund is in a position to pay out approximately a further 9% of the April 30 redemptions. The redemptions will be paid out this week and clients should receive their proceeds by the end of next week. This takes the total repayment of April 30 redemptions on the Bridging Income Fund to 19% while the Bridging Mid-Market Debt Fund has also paid out 19%.

Upon the repayment of certain loans and syndicated loan proceeds being received by Bridging in the coming weeks, Bridging will continue paying out the outstanding redemptions as these events occur.

As a reminder, the LP versions of the Bridging Income Fund and Bridging Mid-Market Debt Fund are open for purchase subscriptions.

We thank you for your support during these unprecedented times as we remain focused on working through these redemptions while continuing to deliver the consistent  and uncorrelated returns your clients have become accustomed to.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (July/2020)

June 30, 2020

Redemption Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)

As first communicated on June 22, 2020, Bridging Finance Inc. (“Bridging”) is now in a position to payout all remaining redemptions from the Bridging Income Fund with an initial trade date of March 31, 2020. The redemptions will be paid out by the end of this week.

Once all of the March 31 redemptions are paid, Bridging will begin paying out the April 30 redemptions on a pro-rata basis. Bridging has closed on the sale of some loans this week and will pay out approximately:

10% of April 30 redemptions from the Bridging Income Fund
19% of April 30 redemptions from the Bridging Mid-Market Debt Fund

These redemptions will also be paid out by the end of this week.

Upon the repayment of certain loans and syndicated loan proceeds being received by Bridging in the coming weeks, Bridging will continue paying out the outstanding redemptions as these events occur.

As a reminder, the LP versions of the Bridging Income Fund and Bridging Mid-Market Debt Fund are open for purchase subscriptions.

We thank you for your support during these unprecedented times as we remain focused on working through these redemptions while continuing to deliver the consistent  and uncorrelated returns your clients have become accustomed to.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds.

Bridging Finance is the manager of the Funds. Prepared by Bridging Finance Inc. (May/2020)

May 15, 2020

Redemption/Liquidity Update
regarding the
Bridging Income Fund and Bridging Mid-Market Debt Fund
(collectively, the “Funds”)

Redemption Protocol

Bridging Finance Inc. (“Bridging”) is taking strong steps towards increasing liquidity in the Funds and has received questions on the protocol surrounding how redemptions will be processed once we have built up sufficient liquidity. Bridging will be processing redemption requests on a “first in, first out” basis for redemption requests with a trade date of March 31, 2020. Redemption requests with a trade date of March 31, 2020 will be processed ahead of redemptions requests with a trade date of April 30, 2020. Once Bridging has satisfied the March 31, 2020 redemptions, we will process the April 30 redemptions on a percentage basis and continue following this protocol until redemptions are fully paid out. For example, for redemptions with a trade date of April 30, 2020, we will be honouring redemptions as a percentage of all redemptions for the period – i.e. 5% or another percentage amount until all redemptions are paid.

Bridging reports that the redemption requests with a trade date of March 31, 2020 will be paid out imminently.

Liquidity Update

Bridging has taken several steps aimed at increasing the cash position in the Funds. Bridging thanks the many advisors who have cancelled redemption requests and continues to encourage advisors who can to cancel pending redemption requests. A number of loans are maturing and will be paid in full. In addition, Bridging has been in discussion with large family offices and institutions to sell credits at par or syndicate loans with them. Bridging has seen a significant amount of interest in these loans due to the quality and terms of the loans.

March 2020 was truly an unprecedented month for global markets and in the face of this global economic turmoil, Bridging continued to deliver the consistent, uncorrelated returns our clients have come to appreciate. For the month of March, the Bridging Income Fund LP Class F returned 0.60%, the Bridging Mid-Market Debt Fund LP returned 0.59% and the Bridging Indigenous Impact Fund returned 0.74%.

Bridging’s portfolio of loans continues to perform well in the face of the global economic shutdown with some borrowers even seeing an increase in demand for their essential goods and services. We are in constant contact with our borrowers and to date have not seen any deterioration in the quality of the loans or the ability of the borrowers to satisfy their interest obligations. Bridging anticipates being able to continue delivering the consistent, uncorrelated returns for the months and years ahead.

Bridging Income Fund LP Class F (March 2020) (LP open for new purchases)

*Since Inception November 2013

Bridging Mid-Market Debt Fund LP Class F (March 2020) (LP open for new purchases)

*Since Inception November 2017

Bridging Indigenous Impact Fund Class F (March 2020) (Open for new purchases)

*Since Inception May 2019

The long-term opportunity of the “private debt” market remains compelling, which is why so many managers are moving into the sector. Asset owners, however, should remain focused on the manager’s longevity, track record and credit-and-collection experience, while considering other factors that can help fine-tune their risk-adjusted returns.

Bridging thanks advisors and clients for their support and wishes you and family all the very best in these unprecedented times.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Disclaimer:

The Funds, and the Bridging Indigenous Impact Fund, are generally exposed to several risks. See the offering memorandum of the Funds for a complete description of these risks. The Funds, including the Bridging Indigenous Impact Fund, are offered on a private placement basis pursuant to an offering memorandum and are only available to investors who meet certain eligibility or minimum purchase amount requirements under applicable securities legislation. The offering memorandum contains important information about each Fund including their investment objectives and strategies, purchase options, applicable management fees, performance fees, other charges and expenses, and should be read carefully before investing. Performance data represents past performance of the Funds and is not indicative of future performance. Data based on performance history of less than five years may not give prospective investors enough information to base investment decisions on. Please contact your own personal advisor on your particular circumstances. This communication is for educational purposes and does not constitute investment advice or an offer to sell or a solicitation to purchase securities of the Funds or the Bridging Indigenous Impact Fund.

Bridging Finance is the manager of the Funds and the manager of the Bridging Indigenous Fund. Prepared by Bridging Finance Inc. (May/2020)

Bridging Finance Inc. (“Bridging”), would like to start by wishing all of our clients and their families good health and safety during these unprecedented times. At Bridging, we are committed to communication and transparency with our clients so we would like to share some insights into why we have taken the difficult but necessary step of temporarily suspending redemptions from our Bridging Income Fund LP, Bridging Income RSP Fund, Bridging Mid-Market Debt Fund LP and Bridging Mid-Market Debt RSP Fund (collectively, the “Funds”)

What is the rationale for temporarily suspending redemptions?

• • As we have all experienced over the past several months, the COVID-19 pandemic has fundamentally altered our way of life and has resulted in a virtual shut-down of the global economy. Although the economic impact is likely to be more significant than in 2008, it is important to keep in mind that this event is unique in that there is no systemic failure of the market. We expect market recovery to be swift once people are back to work again.
  • During this pandemic, we have seen extreme volatility across all major markets which has resulted in an unprecedented level of redemption requests received at Bridging for the Funds. During normal times, Bridging aims to keep cash exposure in the portfolios to roughly 5% to limit cash drag in the portfolios. In response to the pandemic, our initial efforts have focused on raising cash levels in the portfolio to a goal of approximately 10%. Unfortunately, Bridging saw redemptions requests increase to approximately 14% of the Funds during this period. This is unprecedented. Quite simply, the trigger to suspend redemptions was based on redemptions in the Funds that far exceeded our cash position.
  • Bridging took the necessary step of protecting unitholder value by temporarily suspending redemptions instead of demanding on well performing loans or selling assets at a discount in a non-functioning, depressed marketplace.
  • Today, the Bridging funds are performing well and we continue to support Canadian Mid-Market companies, many of whom are involved in the recovery of our local economies, by not demanding on loans during a time of a national and global crisis.
  • It is noteworthy that suspending redemptions is not uncommon in the private debt market, especially during a time of a global crisis. Fund managers operating similar strategies across the globe have also made the decision to gate or suspend their redemptions in this unique time. It is also likely that other private lenders will follow suit and gate their funds if they have not done so already.

How will the temporary suspension be enforced to ensure fairness?

• • The temporary suspension is applicable to the Bridging Income Fund LP, Bridging Income RSP Fund, Bridging Mid-Market Debt Fund LP and Bridging Mid-Market Debt RSP Fund.
  • All redemptions in the funds placed between February 1, 2020 to April 13, 2020 have been suspended.
  • The funds will continue to make their regular distributions that so many of our investors rely on.
  • No further redemptions or subscriptions into these funds will be accepted until the suspension is terminated, which we anticipate being within the following 120 days.
  • Unitholders have the right to withdraw redemption requests previously submitted. This will allow Bridging to open the Funds sooner. For unitholders who do not withdraw previously submitted redemption requests, they will have their redemption requests processed in the order they were received (“first in, first out”) on the first valuation date following the date on which the suspension is terminated.
  • For the time being, all other products managed by Bridging remain available to investors in the ordinary course (i.e. Bridging Indigenous Impact Fund and the Bridging Fern Alternative Credit Fund).

What steps are being taken to resolve this situation?

• • Bridging will not be writing any new loans for the impacted Funds during this temporary suspension.
  • Cash position will continue to build as loans mature in the portfolios as the maturities are staggered.
  • Advisor and clients voluntarily withdrawing redemption requests.
  • Bridging is also exploring selling loans in the marketplace for full value. Bridging will not be selling loans at a discount to face value.
  • Bridging is incenting borrowers to pay off loans sooner by waiving pre-payment penalties.

How are the Fund portfolios doing?

• • The Funds have very little exposure to sectors impacted by the pandemic (e.g. hospitality, tourism, travel, energy). Approximately 90 percent of our borrowers provide essential goods or services.
  • To date, only one borrower has requested that we accrue their interest. Bridging granted this request as there is more than sufficient collateral supporting the loan.
  • We do not plan on making loan demands to our borrowers as long as the loans are performing.
  • Borrowers are still servicing their loans and given the extensive asset coverage (collateral), Bridging is very optimistic of achieving returns in this market.

For clients in all Bridging portfolios, we expect to continue providing the stable monthly returns that Bridging has delivered for the past 7 years. Bridging recognizes that to ensure we provide the best returns to our unitholders, we must continue to be prudent and patient and we ask that our clients join us in this commitment. Bridging has, and will always, place the interest of our unitholders first and foremost.

We thank you for your patience and partnership.

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Past performance is not indicative of future results. This notice shall not constitute an offer to sell the units or the solicitation of an offer to buy the units of any product managed by Bridging Finance Inc., nor will there be any sale of the units, in any jurisdiction where such offer, solicitation or sale is not permitted.

TEMPORARY REDEMPTION SUSPENSION

Bridging Income Fund LP/Bridging Income RSP Fund and
Bridging Mid-Market Debt Fund LP/Bridging Mid-Market Debt RSP Fund
(collectively, the “Funds”)

TORONTO, ONTARIO – April 13, 2020

Bridging Finance Inc. (“Bridging”) is one of Canada’s largest bridge lenders to medium-sized businesses. During this harmful pandemic, Bridging borrowers are providing essential services across Canada. These borrowers are milling flour, delivering groceries, repairing Coast Guard vessels and monitoring train tracks, among meeting many other vital needs for the Canadian people.

Today, the Bridging portfolios are performing well. In fact, many Bridging borrowers are experiencing higher demand for their products as people need more of the basic services that they provide. If Bridging were to press existing borrowers out of the portfolio in order to satisfy unusual redemptions in the Funds, the effect would be to cut off funding to these businesses during an unprecedented economic emergency. It could also result in Bridging investors being unfairly treated if Bridging were to be asked to sell positions at a discount given the lack of a normal market.

To protect all unitholders of the Funds from the effects of this pandemic, Bridging is taking the following steps:

• • • Affirmative action and temporarily suspending all redemptions from the Funds. While a difficult decision, it is one that needs to be implemented to maintain investor value and limit pandemic effects. All redemptions in the Funds placed between February 1, 2020 to April 13, 2020 will therefore be suspended.
    • The Funds will continue to make their regular distributions that so many of our investors rely on.
    • We will be reaching out to advisors who have placed redemption requests to let you know that you have the right to withdraw your requests for redemption. This will allow this temporary suspension to be quickly terminated.
    • Effective immediately, no further requests for redemption or any new subscriptions into these Funds will be accepted until the suspension has been terminated, which we anticipate being within the following 120 days.
    • For unitholders who do not withdraw previously submitted redemption requests, they can opt to receive their redemption proceeds on the first valuation date following the date on which the suspension is terminated.
    • For the time being, all other products managed by Bridging remain available to investors in the ordinary course (i.e. Bridging Indigenous Impact Fund and the Bridging Fern Alternative Credit Fund).

For investors in all Bridging funds, we expect to continue providing the stable monthly returns that Bridging has delivered for the past number of years. Bridging recognizes that to ensure we provide the best returns to our unitholders, we must continue to be prudent and patient. Bridging has, and will always, place the interest of our unitholders first and foremost.

English PDF

French PDF

For further information on this notice:

Ian Baele, Senior Vice President, Sales – C: (416) 937-7641, ibaele@bridgingfinance.ca

Scott Miller, Director, Sales – C: (647) 984-7524, smiller@bridgingfinance.ca

David Sharpe, Chief Executive Officer – C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Past performance is not indicative of future results. This notice shall not constitute an offer to sell the units or the solicitation of an offer to buy the units of any product managed by Bridging Finance Inc., nor will there be any sale of the units, in any jurisdiction where such offer, solicitation or sale is not permitted.

Bridging Finance supporting First Nations during these challenging times – Message from Chief Glenn Hudson of Peguis First Nation

Bridging Finance continues to strongly support our borrowers through these challenging times. Mid-market companies help drive the Canadian economy. Many First Nations across Canada are also relying on us for housing, food security and for economic development. Not only are these strong credits, our partnerships with First Nations supports infrastructure development and creates jobs. This is vital for First Nations and makes Canada stronger. First Nations business is great business!

During these challenging times we thank you and ask for your continued support of our funds! In First Nations communities, the virus does not discriminate, but responses to it do.

Below is a short video message from Chief Glenn Hudson of Peguis First Nation.

Bridging Finance has always been committed to supporting the growth of strong Canadian businesses. This is what we do. It is even more vital during these challenging times. We have seen the Canadian government take the unprecedented steps of closing our borders and ordering the temporary closure of all non-essential businesses to help combat the spread of the Covid-19 virus.

It is during these times that we see the impact that our loans have on fuelling the critical businesses in our economy. One essential area of the economy that has received a great deal of press recently is the food and grocery industry. Bridging  continues to support this industry through a number of partnerships. One firm in particular is SPUD, one of Canada’s largest online grocery retailers delivering fresh, local organic produce and groceries to Canadians. It is critical during these times to continue supporting businesses like SPUD and one way of doing this is by staying the course with Bridging. Bridging’s consistent, non-correlated returns act as a buffer to client portfolios during these volatile times while also offering critical financial support to these essential Canadian businesses and communities impacted by the pandemic like our First Nations communities.

Below is a short video message from the CEO of SPUD, Peter van Stolk, on what they are doing during these challenging times.

Real people, real businesses that continue to require our joint efforts and support for all Canadians.

Considerable time and attention has been dedicated internally to assessing any potential impacts that the recent global virus and oil shocks may have on our portfolio of loans. As a reminder, our mandate involves loans that are secured by first-ranking liens over all the assets of our borrowers. In other words, our capital is the lowest risk capital in our Borrower’s capital structure.  The assets securing our positions are primarily receivables, inventory, equipment, and to a much lesser extent, buildings and real estate. The exposure of many of our loan facilities fluctuates with the value of the underlying receivables and inventory that provide the borrowing base that supports the loans and as the Borrower’s receivables and inventory decrease so too does the amount of our exposure.

Bridging has been in communication with the management teams of our individual Borrower’s over the past several weeks to understand how these recent events are impacting their businesses. Overall, our portfolio has been immune from direct hits from these events. Bridging does not have any exposure to the travel industry which has been widely impacted by recent events. Bridging has one Borrower in the transportation industry representing less than 1% of the portfolio. This Borrower is a well capitalized global logistics company that specializes in shipping product via sea and has actually seen a pick up in demand for its services. As has been communicated previously, we have no focus on commodities and have no intention of providing capital to that sector in the future.

While we have avoided having any direct exposure to these recent events, our Borrowers are not completely immune from secondary effects of a slow down in growth. However, we are confident that our focus on senior-secured loans, and our emphasis on collateral values combined with an intense monitoring of our loans, will prove to be a prudent strategy in this environment.  We do expect that access to bank credit may slow in the next few quarters, which will result in a flood of overlooked and attractive borrowers for Bridging.

During this time, Bridging has implemented its Business Continuity Plan (“BCP”) in order to ensure minimal disruption to the daily operations of the business or delays in the striking of the NAV each month. The BCP procedures are being followed until further notice is provided.

For further information on Bridging Finance Inc.:

David Sharpe, LLB, LLM, MBA
Chief Executive Officer, Bridging Finance Inc.,
C: (647) 981-5658, dsharpe@bridgingfinance.ca;

Ian Baele
Senior Vice President, Sales, Bridging Finance Inc.
C: (416) 937-7641, ibaele@bridgingfinance.ca;

Scott Miller
Director, Sales, Bridging Finance Inc.,
C: (647) 984-7524, smiller@bridgingfinance.ca

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