Toronto, Ontario (FSCwire) - Quantum International Income Corp. (the "Corporation" or "Quantum") (TSXV: QIC) is pleased to announce the filing of its Q1 financial results for the 2019 fiscal year. For more information, please see the interim consolidated financial statements of the Corporation for the first quarter ended May 31, 2018 and the related management's discussion and analysis, which are available electronically on SEDAR under Quantum's issuer profile at www.sedar.com. All figures are in U.S. dollars unless otherwise noted.

"This quarter marks the first reporting period to capture all of our acquisitions and, as a result, we more than doubled our revenues and tripled our adjusted EBITDA," said Manu K. Sekhri, Chief Executive Officer of Quantum. He added, "With the additional purchase of 9% in our operating business almost complete and other consolidation opportunities within reach, we feel optimistic about our future growth."

Highlights – Quarter Ended May 31, 2018

• Generated gaming revenues of approximately $19.3 million, representing a 120% increase compared to revenues of approximately $8.8 million for the same period in the prior year.

• Generated Adjusted EBITDA of $8.0 million for Q1 2019, compared to $2.7 million for Q1 2018; representing an increase of ~200%.

• Generated positive cash flow from operations of approximately $2.7 million, compared to $0.2 million in the same period last year.

• Net loss of approximately $4.0 million for the quarter ended May 31, 2018, compared to a net loss of approximately $0.4 million for the same period in the prior year; largely attributable to non-cash and extraordinary items.

• Basic and diluted loss per share was $0.05, compared to a loss per share of $0.03 in the same period last year.

• Working capital of ~$5.1 million, compared to $1.4 million as at February 28, 2018.

• In April 2018, closed a $75 million multi-draw credit facility with Goldman Sachs Specialty Lending Group, L.P., which translates to interest savings of over $5 million per year and bolsters the growth by acquisition strategy in Georgia, U.S.

Update – Additional Lucky Bucks Interest Acquisition

The Corporation is also pleased to announce, further to its news release of June 29, 2019, that Quantum and its wholly-owned subsidiary, Southern Star Gaming, LLC, are close to completing their previously announced acquisition of an additional 9% of the membership interest in Lucky Bucks, LLC ("Lucky Bucks") in exchange for cash consideration of $6 million (the "Additional Lucky Bucks Interest Acquisition"). As a result of the Additional Lucky Bucks Interest Acquisition, Quantum will increase its indirect ownership interest in Lucky Bucks from 51% to 60%, with a corresponding decrease in the ownership interest of Lucky Bucks Ventures, Inc. in Lucky Bucks from 49% to 40%. The cash consideration of $6 million includes a $2.35 million unsecured non-interest bearing promissory note due and payable by Quantum Gaming Corp. to Lucky Bucks Ventures, Inc. in tranches no later than December 31, 2018.

Subject to obtaining the required regulatory approvals, Quantum expects to close the Additional Lucky Bucks Interest Acquisition by the end of this week.

About Quantum International Income Corp.

Quantum International Income Corp. is a gaming company. Quantum's vision is to build a diversified portfolio of world class gaming operations. The Corporation looks to enhance shareholder value by growing organically and through acquisitions. The Corporation has an active acquisition strategy with a particular focus on cash-flows and high margins. Currently, the Corporation is the largest route operator of skill-based gaming machines in the State of Georgia, United States of America.

Material information pertain to the Corporation may be found on SEDAR under Quantum's issuer profile at www.sedar.com or on Quantum's website at www.quantumincomecorp.com.

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements or "forward-looking information" within the meaning of applicable Canadian securities laws ("forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In this news release, forward-looking statements pertain, among other things, to the Corporation's ability to deliver sustainable growth to its shareholders; the success of the Corporation in the Georgia gaming market; the ability of the Corporation to execute upon a consolidation strategy in the Georgia gaming market; the timing and ability of the Corporation to complete the Additional Lucky Bucks Interest Acquisition, if at all; the Additional Lucky Bucks Interest Acquisition being exempt from the requirement to obtain a formal valuation and minority shareholder approval under MI 61-101 and the rules of the TSX Venture Exchange; and the ability of the Corporation to complete the Additional Lucky Bucks Interest Acquisition on terms announced and pay the $2.35 million promissory note due to Lucky Bucks Ventures, Inc. on the agreed terms.

All forward-looking statements reflect the Corporation's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Corporation's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Corporation believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the digital gaming terminals being fully-licensed by the Georgia State Lottery, the continuation of the Corporation's consolidation strategy in the Georgia gaming market, the growing footprint of Quantum in the Georgia gaming market, generating value for the shareholders of the Corporation, the regulatory regime governing the business of Quantum in Georgia, the exchange rate between the U.S. dollar and Canadian dollar, the ability to grow the business and generate stable distributions for shareholders, the availability of high growth, high margin opportunities, and the execution of the Corporation's business strategy.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the availability of opportunities to consolidate additional assets in the Georgia gaming market, the availability of investment opportunities on terms acceptable to the Corporation, the regulatory regime in the State of Georgia, the licensing regime governing the Georgia State Lottery, the exchange rate between the U.S. dollar and Canadian dollar, and other internal and external factors disclosed in the most recent annual information form of the Corporation and other documents publicly filed by the Corporation. Although Quantum has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Non-IFRS Financial Measures

Statements in this news release make reference to Adjusted EBITDA, which is a non-IFRS (as defined herein) financial measure that the Corporation believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Corporation's past financial performance and prospects for the future. The Corporation believes that Adjusted EBITDA provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of Quantum's core operating results. Adjusted EBITDA is a financial measure that does not have a standardized meaning under International Financial Reporting Standards ("IFRS"). Adjusted EBITDA is defined as earnings before financing costs, income taxes, depreciation, amortization of property and equipment and intangible assets, stock-based compensation, foreign exchange, impairment, gain/loss on settlement of accounts payable, financing income, business acquisition costs, warrant fair value adjustment and derivative asset fair value adjustment. As there is no standardized method of calculating Adjusted EBITDA, it may not be directly comparable with similarly titled measures used by other companies. The Corporation considers Adjusted EBITDA to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. Adjusted EBITDA is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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