Montfort Capital Taps MNP as Auditor Amid Strategic Overhaul

TORONTO, ON – December 18, 2025 – In a significant move for its corporate governance framework, Montfort Capital Corp. (TSXV: MONT) announced it has appointed MNP LLP as its new auditor. The change, effective December 12, 2025, concludes a two-month search following the resignation of PricewaterhouseCoopers LLP (PwC) and comes as Montfort undergoes a substantial strategic restructuring to sharpen its focus on the private credit market.

The transition from a 'Big Four' accounting giant to another of Canada's largest national firms is a noteworthy event for any publicly traded company. While such changes can sometimes raise investor questions, the context surrounding Montfort’s decision points toward a calculated step aligned with its broader corporate evolution rather than an immediate red flag. The move has been reviewed and approved by the company's Audit Committee and adheres to strict regulatory protocols.

A Calculated Transition in a Period of Change

The appointment of MNP LLP marks the final step in a carefully managed transition process that began with PwC's resignation on October 7, 2025. Montfort publicly disclosed the departure on October 10, assuring investors it was already in “advanced discussions with a potential successor auditor.” The formal appointment of MNP ensures there will be no gap in audit oversight as the company prepares for its next fiscal year, with MNP set to serve until the next Annual General Meeting.

This change in auditors is not happening in a vacuum. Over the past year, Montfort Capital has been actively reshaping its business. The company has divested several non-core assets, including its mortgage lending business in April 2024, followed by the sale of its TIMIA technology lending business in November 2024 and its Pivot business in November 2025. These sales are part of a deliberate strategy to streamline operations, reduce overhead costs, and concentrate resources on its most profitable and promising lines of business: the Langhaus and Nuvo private credit portfolios.

This strategic refocus is reflected in the company's recent financial performance. While Montfort reported a net loss from continuing operations of $4.3 million for the first half of 2025, its discontinued operations generated a net income of $4.9 million, showcasing the financial impact of the divestitures. The core business is also showing signs of growth, with loans receivable, net of allowance, increasing by 17.2% to $222 million as of June 30, 2025. The auditor change can be seen as a parallel move to align its financial oversight with its new, more focused corporate structure.

Beyond the Big Four: A Strategic Fit for a Niche Player

The shift from PwC to MNP invites analysis into the strategic thinking behind the decision. While losing a 'Big Four' auditor can sometimes be perceived negatively, the selection of MNP—a firm with a robust national presence and extensive experience with public companies on the TSX Venture Exchange—mitigates many of these concerns. MNP is widely regarded for its work in the financial services sector and is known for providing a level of service that can be highly advantageous for specialized firms like Montfort.

For a company honing its focus on the niche market of private credit, an auditor that offers a more tailored approach can be a significant asset. Mid-tier firms like MNP are often seen as providing greater partner involvement and a more flexible service model compared to the larger, more standardized processes of the Big Four. This can be particularly beneficial for a company navigating a period of transformation, where nuanced understanding and specialized advice are paramount.

Furthermore, the regulatory filings associated with the change provide a layer of reassurance. In accordance with National Instrument 51-102, Montfort will file a Notice of Change of Auditor on SEDAR+, which includes letters from both PwC and MNP. The press release noted that PwC's letter would confirm its agreement with the statements in the notice, a key detail suggesting the separation was amicable and not the result of unresolved accounting disagreements or reportable events—a critical piece of information for maintaining investor trust.

Ensuring Confidence Through Financial Reporting

For investors and market analysts, the continuity and integrity of financial reporting are crucial, especially when a company is in flux. The appointment of a reputable firm like MNP sends a clear signal that Montfort remains committed to high standards of transparency and accountability. The new auditor's primary task will be to provide an independent assessment of the company’s financial statements, which now reflect a leaner, more focused business model.

A fresh set of eyes can also be beneficial. MNP will bring a new perspective to Montfort's financials, which can help validate the accounting practices and internal controls of the restructured company. This independent verification is essential for building market confidence in Montfort’s new strategic direction. As the company moves forward, the quality and clarity of its financial disclosures under MNP's oversight will be a key determinant of its relationship with its stakeholders.

The transition period will be closely watched. Investors will be keen to review the official filings on SEDAR+ for complete transparency regarding PwC's departure. However, the proactive communication from Montfort and the swift appointment of a credible successor suggest a well-managed process. For Montfort Capital, the appointment of MNP LLP is not just a routine compliance matter, but a foundational element in shaping the financial narrative of its next chapter as a specialized player in the private credit investment space.