NEWLOOK CAPITAL DENTAL SERVICES TRUST (THE “DENTAL FUND”) SPEAKING POINTS

Burlington ON August 27th, 2019 / – Newlook Capital Inc. (“Newlook”) is pleased to announce the ongoing growth and performance of Dentalook Management Co. (“Dentalook”) and wants to provide our Dealing Representatives with some points to use when talking about NLC Dental Services Trust to investors.

1) Performance in a Recession

The dental industry proved to be a reliable and consistent revenue source through the 2008 recession period. The chart below shows that even as patients opted to postpone more expensive restorative procedures, hygiene production increased 5-6%. This slight increase in hygiene work compensated for the dip in dentist/doctor revenues, particularly because hygiene revenue is the highest margin revenue line of the business. Dentist production increased as patients attended to postponed procedures when their household incomes allowed for it.

2) Aligned and Invested Management Team

Dentalook is a successful multi-city, multi-clinic group of practices operating in central Canada and led by Dr. Said Mazahreh DDS (“Dr. Sam”). Dr. Sam has invested $3M of his personal funds into Dentalook as preferred equity (which, along with Newlook’s $9M of committed preferred equity, ranks behind investor capital in the capital stack) and has grown Dentalook into ten practices in the last two years with revenues of approximately $14.6 million in 2018.

3) The Return

Structured as a debenture to Trust unitholders (which is secured by the assets of the practices), the investment offers a targeted 9% preferred annual return (paid quarterly) to investors and a great risk-reward return. In comparison, banks will lend up to 100% financing in the Dental market, showcasing their recognition of the stability of the dental market in all economic conditions.

In addition to a risk-adjusted annual return of 9%, DRIP is available and is offered at a 5% discount to investors. This can significantly enhance the return into the double digits. Please speak with your Corporate Finance team to get the calculation for the total return if DRIP is utilized.

For more information view our Dental Video at this link or below. If you would like any other materials or have any other questions please feel free to reach out to us at dentalfund@newlookcapital.com with additional questions.

Newlook Capital is a private equity firm that currently manages two industry-specialized funds. Each fund has its own focused, experienced, and aligned management, and a defined strategy. Investing throughout Canada and the United States with a preference for companies that exhibit a solid tangible asset base.

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