Sobering reading on page 16 of the Prospectus of their former...

Sobering reading on page 16 of the Prospectus of their former "cash cow" in Michigan. In July 2021, Michigan implemented a law change in relation to motor vehicle accident (MVA) healthcare costs which has negatively impacted the financial viability of medical service providers to continue to treat victims of MVAs on a medical lien basis. This placed financial stress on the medical service providers which NHF has purchased claims from in the past, leading to certain medical providers breaching terms of their funding arrangements with NHF.In addition, insurance companies have been challenging, in Court, the standing of medical service providers to represent medical lien claims that have been funded/acquired by funders including NHF, and while NHF has been successful in defending many of these challenges, it is becoming more difficult, particularly relating to claims acquired from one large medical service provider.The Company is currently actively engaged with the relevant medical providers and is optimistic that consensual agreements will be reached with them over the coming months, to preserve value recoverable by NHF in respect of the claims. However, there is a risk that the Company’s assumptions proves to be incorrect.