Company Announcements

Silver Beech Makes Public Its Letter to ECN Highlighting Substantial Upside Opportunity in ECN’s Shares

  • Believes ECN’s Unique Credit Platforms Provide Immense Value to Customers and Demand Premium Valuation(s)

  • Sees 100%+ Upside to Current Share Price Given the Deep Discount ECN is Currently Trading At

NEW YORK--(BUSINESS WIRE)--Mar. 16, 2023-- Silver Beech Capital Management LLC (“Silver Beech”, “us” or “we”), a shareholder of ECN Capital Corp. (TSX: ECN) (the “Company”, “ECN Capital”, or “ECN”), today makes public its letter sent to ECN’s Management and Board of Directors urging the Company to remain mindful of ECN’s intrinsic value while the Company undertakes its “review of strategic alternatives to maximize shareholder value” detailed in the Company’s press release dated March 7th, 2023.

Silver Beech’s letter to ECN is available here.

“ECN is a high-quality, asset-light, high-margin business with substantial long-term growth potential. ECN provides its funding partners with superior access to market-leading consumer credit products,” said Silver Beech Partner James Kovacs. “The Company is currently trading at a deep discount to its historical valuation following a downwards revision of earnings guidance for 2023 caused by softening demand for manufactured housing and recreational vehicles. However, we are optimistic that with the recently announced review of strategic alternatives and ECN’s impressive track record of capital allocation, ECN will once again deliver for shareholders and unlock substantial value that is not currently appreciated by the public markets.”

About Silver Beech

Silver Beech Capital Management LLC (“Silver Beech”) is a value-oriented, fundamentals-driven investment firm. Silver Beech invests in durable and high quality but undervalued publicly traded North American companies. Silver Beech is an engaged shareholder that combines concentrated public equity ownership with operational expertise to generate leading returns for its investors over the long


All information provided herein is for informational purposes only and should not be deemed as a recommendation to buy or sell securities. All investments involve risk including the loss of principal. This transmission does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product. Any such offer or solicitation may only be made by means of delivery of an approved confidential offering memorandum.

The information in this letter is based on publicly available information about ECN Capital Corp. (the “Company”). Except where otherwise indicated, the information in this letter speaks only as of the date set forth on the cover page, and no obligation is undertaken to update or correct this letter after the date hereof. Permission to quote third party reports in this letter has been neither sought nor obtained.

This letter may include forward-looking statements that reflect the current views of Silver Beech Capital Management LLC (“Silver Beech”) with respect to future events. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may,” “would,” and similar words are often used to identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond the control of the parties making such statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements. Any forward-looking statements made in this letter are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company or its business, operations, or financial condition. Except to the extent required by applicable law, we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

Silver Beech currently has an economic interest in the price movement of the securities of the Company. It is possible that there will be developments in the future that cause Silver Beech to modify this economic interest at any time or from time to time. This may include a decision to sell all or a portion of its holdings of Company securities in open market transactions or otherwise, or purchase additional Company securities (in open market or privately negotiated transactions or otherwise). Silver Beech also reserves the right to take any actions with respect to its investment in the Company as it may deem appropriate, including, but not limited to, communicating with the board of directors, management, and other investors.

Although Silver Beech believes the information herein to be reliable, Silver Beech makes no representation or warranty, express or implied, as to the accuracy or completeness of those statements or any other written or oral communication it makes with respect to the Company and any other companies mentioned, and Silver Beech expressly disclaims any liability relating to those statements or communications (or any inaccuracies or omissions therein). Thus, shareholders and others should conduct their own independent investigations and analysis of those statements and communications and of the Company and any other companies to which those statements or communications may be relevant.

James Hollier
(646) 598-2684

James Kovacs
(646) 685-4753

Source: Silver Beech Capital Management LLC