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Press release from Marketwire

Carfinco Financial Group Inc. Announces $22 Million "Bought Deal" Common Share Financing

Monday, March 25, 2013

Carfinco Financial Group Inc. Announces $22 Million "Bought Deal" Common Share Financing07:50 EDT Monday, March 25, 2013EDMONTON, ALBERTA--(Marketwire - March 25, 2013) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES.Carfinco Financial Group Inc. ("Carfinco" or the "Company") (TSX:CFN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including Stonecap Securities Inc. and Industrial Alliance Securities Inc. (the "Underwriters"), which have agreed to purchase, on a bought deal basis, 1,540,000 common shares of the Company (the "Common Shares") from treasury (the "Treasury Offering"), 360,000 Common Shares from Mr. David Rosenkrantz and 360,000 Common Shares from Mr. David Prussky (the "Secondary Offering"), at a purchase price of $9.75 per Common Share, for total gross proceeds of $22,035,000 comprising $15,015,000 as the Treasury Offering and $7,020,000 as the Secondary Offering. Carfinco has also granted the Underwriters the option to purchase an additional 231,000 Common Shares from treasury at the same purchase price for a period of up to 30 days after closing of the Offering to cover over allocations, if any, and for market stabilization purposes. The net proceeds of the Treasury Offering will be used by the Company to reduce indebtedness, for general corporate purposes and for potential future acquisitions. The Company will not receive any net proceeds from the Secondary Offering. The Common Shares to be issued under this offering will be offered by way of a short form prospectus in all of the provinces in Canada except Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended ("US Securities Act").The offering is scheduled to close on or about April 16, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.The securities offered have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.About Carfinco Financial Group Inc.Carfinco focuses on providing consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plan to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The shares of the company trade on The Toronto Stock Exchange under the symbol "CFN".Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Carfinco Financial Group Inc.Mr. Tracy A. GrafCEO & Director1-888-486-43561-888-486-7456 (FAX)tracy.graf@carfinco.comwww.carfinco.com