Record Adjusted EBITDA(1) and cash flows from operations supported by 15% YOY revenue growth

CALGARY, Alberta, June 12, 2018 (GLOBE NEWSWIRE) -- Cortex Business Solutions Inc. (“Cortex”) (TSXV:CBX), a North American network-as-a-service e-invoicing solutions provider, today announces its three and nine months ended April 30, 2018 (“Q3 F2018”) Management’s Discussion and Analysis and Consolidated Financial Statements.

“I believe these results are just the beginning of the momentum that we are building at Cortex. Our team has remained focused on helping our customers to deliver their own results and savings with our ever-expanding service. We have never helped as many suppliers get paid as quickly as we have in this past quarter and our recently released payments business is now one of the fastest growing income lines at Cortex. I could not be more excited with the trajectory that Cortex is on,” said Joel Leetzow, President and CEO of Cortex Business Solutions.

“Cortex was successful in growing its recurring access revenue YTD by 26% and overall YTD revenue by 15% compared to prior year. Along with another quarter of record adjusted EBITDA, these results and the large cash balance will allow Cortex to explore further growth through M&A and developing new products internally,” said Jason Baird, VP, Finance & CFO of Cortex Business Solutions. “I believe Fiscal 2018 results has confirmed that Cortex is on the right path to achieving its long-term growth strategy.”

Q3 F2018 Financial Highlights

Three months ended April 30, 2018 compared to April 30, 2017

-- Adjusted EBITDA(1) increased 264% or by $0.4 million to $0.6 million from $0.2 million -- Positive cash flow from operating activities increased 249% to $0.8 million from positive cash flows from operating activities of $0.2 million -- Overall revenue increased 6% or by $0.2 million to $3.1 million from $2.9 million -- Access and usage fees increased 12% or by $0.3 million to $2.9 million from $2.6 million -- Gross profit improved 11% or by $0.2 million to $2.3 million from $2.1 million -- Net income improved 3,147% or by $0.6 million to $0.6 million from $0.02 million

Nine months ended April 30, 2018 compared to April 30, 2017

-- Adjusted EBITDA(1) increased 358% or by $1.3 million to $1.7 million from $0.4 million -- Positive cash flow from operating activities increased materially to $1.3 million from positive cash flows from operating activities of $0.006 million -- Overall revenue increased 15% or by $1.3 million to $9.4 million from $8.1 million -- Access and usage fees increased 17% or by $1.2 million to $8.6 million from $7.3 million -- Access fees increased 26% to $5.6 million from $4.4 million -- Gross profit improved 24% or by $1.2 million to $6.9 million from $5.7 million -- Net income improved 565% or by $1.6 million to $1.3 million from $(0.3) million

Cash Position

The overall cash position of Cortex improved 21% to $7.6 million at April 30, 2018, 2018 from $6.2 million at July 31, 2017 driven predominantly from an increase in net cash provided by operating activities mainly from higher access and usage fees and project management revenues.

(1) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, non-recurring charges and share based payments. Adjusted EBITDA is a non-IFRS financial measure that does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. This measure assists the Company in evaluating the Company’s operating performance against its expectations and against other entities. Please refer to the Company’s management’s discussion and analysis for the quarter ended January 31, 2018 for further information on the Company’s use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to Net Income.

Cortex’s management will host a conference call, followed by a question and answer period.

The details of the conference call are as follows:

Date: Wednesday, June 13, 2018 Time: 10:00 a.m. Eastern time (8:00 a.m. Mountain time) Toll-free dial-in number: 1-800-273-9672 International dial-in number: 1-416-340-2216

Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Cortex Business Solutions at 403 219-2838.

A replay of the conference call will be available after the call through June 20, 2018.

Toll-free replay number: 1-800-408-3053 Toll replay number: 1-905-694-9451 Replay ID: 1177420#

About Cortex

Cortex’s strategy is to revolutionize B2B document exchange by replacing traditional paper-based manual systems with automated e-invoicing. This positions companies with the scalability and flexibility needed to meet the demands of today’s business. Cortex offers a B2B network that enables electronic invoicing for buying and supplying organizations using flexible connection methods to leverage existing customer technologies and processes. Access to the Cortex Network enhances the exchange of documents allowing companies to connect and interact with each other to grow their businesses.

Cortex is currently delivering e-invoicing services to over 10,000 Trading Partners in Oil & Gas, Mining, Manufacturing and Sports & Entertainment industries, with a focused expansion into additional verticals.

For more information, please visit www.cortex.net.

Investor Relations Contacts:

Joel Leetzow President and CEO jleetzow@cortex.net 403-219-2838 Jason Baird VP, Finance & CFO jbaird@cortex.net 403-219-2838

Cortex Business Solutions Inc. Condensed Consolidated Interim Statements of Financial Position

(Prepared in Canadian Dollars)(Unaudited)

April 30 July 31 2018 2017 Assets Current Assets Cash and cash equivalents $ 7,561,299 $ 6,248,176 Short-term investments 60,000 60,000 Accounts receivable 1,092,404 1,220,442 Prepaid expenses 218,281 180,710 - ----------- - - ----------- - 8,931,984 7,709,328 Long-term receivable 112,083 98,761 Deposits 67,439 35,061 Property and equipment 112,428 178,118 Intangible assets 23,264 30,018 - ----------- - - ----------- - $ 9,247,198 $ 8,051,286 - ----------- - - ----------- - Liabilities Current Liabilities Accounts payable and accrued liabilities $ 1,095,390 $ 1,834,471 Deferred revenue 375,919 423,734 Current income tax payable 20,951 9,203 Current portion of obligations under finance lease 22,923 - 1,515,183 2,267,408 Deferred rent 150,445 - Obligations under finance lease 19,511 - - ----------- - - ----------- - 1,685,139 2,267,408 - ----------- - - ----------- - Shareholders' Equity Share capital 60,771,418 60,562,286 Accumulated other comprehensive income 602,103 591,752 Contributed surplus 9,802,315 9,526,341 Deficit (63,613,777 ) (64,896,501 ) 7,562,059 5,783,878 - ----------- - - ----------- - $ 9,247,198 $ 8,051,286 - ----------- - - ----------- -

Cortex Business Solutions Inc. Condensed Consolidated Interim Statement of Income (Loss) and Comprehensive Income (Loss)For the three and nine months ended April 30, 2018 and 2017(Prepared in Canadian Dollars)(Unaudited)

Three months ended Nine months ended April 30 April 30 2018 2017 2018 2017 Revenue Access and usage fees $ 2,911,847 $ 2,603,932 $ 8,575,652 $ 7,339,745 Integration fees 87,612 119,792 224,856 220,391 Project management and other revenue 113,384 207,002 565,963 561,334 3,112,843 2,930,726 9,366,471 8,121,470 Cost of Sales 799,126 853,057 2,420,930 2,449,037 Gross Profit 2,313,717 2,077,669 6,945,541 5,672,433 - --------- - - --------- - - --------- - - --------- - Expenses Sales and marketing 500,085 596,473 1,674,647 1,640,534 Research and development 473,928 500,338 1,410,658 1,403,028 General and administrative 696,160 908,697 2,465,305 2,725,034 Severance and termination 5,747 36,436 164,431 128,057 1,675,920 2,041,944 5,715,041 5,896,653 Income (loss) before finance income 637,797 35,725 1,230,500 (224,220 ) Finance income 38,540 921 58,701 1,359 Income tax expense (2,227 ) (16,799 ) (6,477 ) (46,464 ) Net income (loss) $ 674,110 $ 19,847 $ 1,282,724 $ (269,325 ) - --------- - - --------- - - --------- - - --------- - Other comprehensive earnings Items that may be reclassified subsequently to net income (loss): Foreign exchange gain on foreign operations 60,197 97,922 10,351 70,473 Comprehensive income (loss) $ 734,307 $ 117,769 $ 1,293,075 $ (198,852 ) - --------- - - --------- - - --------- - - --------- - Net income (loss) per share – basic and diluted $ 0.07 $ 0.00 $ 0.14 $ (0.03 ) - --------- - - --------- - - --------- - - --------- -

Cortex Business Solutions Inc. Condensed Consolidated Interim Statement of Changes in Shareholders’ Equity(Prepared in Canadian Dollars)(Unaudited)

Accumulated Total Number of Share Other Contributed Shareholders’ Common Capital Comprehensiv Surplus Deficit Shares e Equity Income Balance – July 31, 2016 8,984,704 $ 60,291,515 $ 640,232 $ 9,126,948 $ (64,481,187 ) $ 5,577,508 Net loss - - - - (289,172 ) (289,172 ) Translation of foreign - - (27,449 ) - - (27,449 ) operations Compensation units & stock 3,491 18,368 - (11,386 ) - 6,982 options exercised Deferred share units - - - 200,000 - 200,000 issued Stock based compensation - - - 75,566 - 75,566 --------- - ---------- - ------- - - --------- - - ----------- - - --------- - Balance – January 31, 2017 8,988,195 60,309,883 612,783 9,391,128 (64,770,359 ) 5,543,435 --------- - ---------- - ------- - - --------- - - ----------- - - --------- - Balance - July 31, 2017 9,069,983 60,562,286 591,752 9,526,341 (64,896,501 ) 5,783,878 Net income - - - - 608,614 608,614 Translation of foreign - - (49,846 ) - - (49,846 ) operations Compensation units & stock 27,163 89,132 - (31,051 ) - 58,081 options exercised Deferred share units - - - 200,000 - 200,000 issued Stock based compensation - - - 148,398 - 148,398 --------- - ---------- - ------- - - --------- - - ----------- - - --------- - Balance – January 31, 2018 9,097,146 $ 60,651,418 $ 541,906 $ 9,843,688 $ (64,287,887 ) $ 6,749,125 --------- - ---------- - ------- - - --------- - - ----------- - - --------- -

Cortex Business Solutions Inc. Condensed Consolidated Interim Statement of Cash FlowsFor the three and nine months ended April 30, 2018 and 2017(Prepared in Canadian Dollars)(unaudited)

Three months ended Nine months ended April 30 April 30 2018 2017 2018 2017 Cash provided by (used in) Operating activities Net income (loss) $ 674,110 $ 19,847 $ 1,282,724 $ (269,325 ) Items not affecting cash Stock-based compensation 78,627 67,740 427,025 419,361 Amortization 9,220 25,004 167,681 74,889 Deferred Rent (9,400 ) - 150,445 - Accretion on rebate provision - 2,153 - 6,460 Loss on disposal of equipment 868 - 868 1,012 Long term receivables 21,963 (26,517 ) (13,322 ) (79,551 ) Changes in non-cash working capital 67,660 153,229 (717,056 ) (146,393 ) - --------- - - --------- - - --------- - - --------- - Net cash provided by operating activities 843,048 241,456 1,298,365 6,453 - --------- - - --------- - - --------- - - --------- - Financing activities Proceeds on exercise of compensation units & stock - 5,067 58,081 12,049 options Finance lease payments (5,696 ) - (24,371 ) - - --------- - - --------- - - --------- - - --------- - Net cash provided by (used in) financing activities (5,696 ) 5,067 33,710 12,049 - --------- - - --------- - - --------- - - --------- - Investing Activities Acquisition of property and equipment (11,591 ) (548 ) (29,300 ) (2,888 ) - --------- - - --------- - - --------- - - --------- - Net cash used in investing activities (11,591 ) (548 ) (29,300 ) (2,888 ) - --------- - - --------- - - --------- - - --------- - Effect of exchange rate changes on cash and cash 60,198 97,822 10,348 70,472 equivalents held in foreign currency - --------- - - --------- - - --------- - - --------- - Cash inflow 885,959 343,797 1,313,123 86,086 Cash, beginning of period 6,675,340 5,574,766 6,248,176 5,621,835 - --------- - - --------- - - --------- - - --------- - Cash, end of period $ 7,561,299 $ 5,918,563 $ 7,561,299 $ 5,707,921 - --------- - - --------- - - --------- - - --------- -