Morgan Financial Corp. Announces Earnings for the Nine Months Ended Sept. 30, 1996

Business Wire, Nov 7, 1996

TORONTO--(BUSINESS WIRE)--Nov. 7, 1996--MORGAN FINANCIAL CORP. (TSE MFT.) -- Morgan Financial Corp. today announced earnings for the nine months ended Sept. 30, 1996 of $808,000 (0.7 cents per share) compared to $3,374,000 (2.1 cents per share) in the same period of 1995. For the three months ended September 30, 1996, earnings were $174,000 (0.1 cents per share) compared to $990,000 (0.6 cents per share) in the corresponding period of 1995. The significant reduction in Morgan's earnings from 1995 results from the sale of Westbury Canadian Life Insurance, effective Dec. 31, 1995, to a subsidiary of the Royal Bank of Canada.

In 1996, a total of 39,348,000 of Morgan shares have been cancelled, reducing the number of issued shares to 118,290,597.

In addition to receiving clearance from various government agencies, Morgan must, before dissolving, also resolve the dissent and appraisal action proceedings begun by three Morgan shareholders in connection with the Westbury sale. Morgan's board has determined that the fair market value of the shares held by the dissenting shareholders is 0.8 cents per share and has offered this amount to the dissenting shareholders. During the third quarter, one shareholder with 304,000 shares accepted Morgan's offer and was paid $24,320. The other two shareholders who hold 3,044,000 shares have not accepted the offer as yet.

As previously announced, Morgan intends to satisfy its remaining liabilities, distribute its remaining assets to its shareholders and dissolve as soon as possible. The estimated amount available for distribution continues to be approximately 8.4 cents a share. The distribution will not occur before July 1997 as certain Morgan's assets are held in escrow until then.

CONTACT: Morgan Financial Corp.

Rob Collins, 416/863-2519