Armada Mercantile Ltd., (Symbol: CSE: ARM and USOTC: AAMTF) would like to provide a short update to shareholders regarding its commercial finance operations.

Monthly Collections: March was a good month for invoice collections. On a scale of 1 – 10 (1 being low collections during the month and 10 being our best month ever), the month of March was an 8, which is very good. This was due to many of our smaller ticket invoices paying as usual while larger tick invoices paid ($1.7MM) during the month as well. April looks like another good collection month due to large ticket invoices (Buffalo, NY school system) as well as typical collections from our client portfolio.

Funding: Overall, it is reasonable to expect some slowing in funding levels to our clients. We are reviewing every client with a strong emphasis on their industry and industry trends. Several of our clients serve industries that are performing well, such as sanitation wipes, medical gloves/products, sanitation services, hospitals, communication and business with Government agencies.

New Business: Presently we are experiencing a sharp uptick in requests for new service. Many of these requests are related to the ongoing struggles with Coronavirus. We are extremely careful with all new requests now, as there are many people attempting to take advantage of the situation. Overall, the tremendous changes occurring in the US economy bodes very well for alternative financing organizations who stay vigilant at every step.

Funding Needs: We are arranging more non-dilutive asset-backed capital to fund more client invoices, as our client’s business continues to grow, especially with the virus situation. A new client fully credit insured by Coface, is coming on-board now and an existing client just received a contract ($3M) from the City of San Francisco. Both clients will need invoice funding along with our existing client book of business. On March 31, 2020, Armada signed a loan agreement ($10M) with a lender subject to certain closing terms.

For more information pertaining to Armada Mercantile Ltd., visit: www.armadamercantile.com.