Emergent Capital, Inc. (OTCQB: EMGC) announced that it has supplemented the terms of its previously announced offer to exchange any and all of its outstanding $74,220,450 aggregate principal amount of 8.50% Senior Unsecured Convertible Notes due 2019 for $74,220,450 aggregate principal amount of a new series of 5.00% Senior Unsecured Convertible Notes due 2023 together with a right to subscribe for 500 shares of Emergent's $0.01 par value common stock at $0.20 per share for each $1,000 principal amount of Old Notes tendered up to an aggregate of 40,000,000 shares, and its previously announced solicitation of consents from the holders of the Old Notes to eliminate substantially all restrictive covenants contained in the Old Notes Indenture and the Old Notes. In addition to its supplement number 1 to its offer to exchange, Emergent has also amended and restated its consent and letter of transmittal. The supplement number 1 and the amended and restated consent and letter of transmittal provide additional disclosure about exchange procedures for the Exchange Offer and subscription procedures for the Rights Offering. The supplement number 1 also provides additional disclosure about certain ownership interests in the Old Notes, withdrawal rights if Emergent has failed to accept validly tendered Old Notes after the 40th business day after the commencement of the Exchange Offer, conditions of the Exchange Offer, Consent Solicitation and Rights Offering, the execution and delivery of a bridge note, and certain supplemental summary and pro forma financial information among other modifications to the Exchange Offer.

As of 5:00 p.m., New York City time, on May 25, 2017, according to US Bank, the Information Agent and Exchange Agent for the Exchange Offer, $1,508,450, or 2.03%, of the aggregate principal amount of the Old Notes had been validly tendered and not withdrawn in the Exchange Offer.

The Expiration Date of the Exchange Offer, Consent Solicitation and Rights Offering, as amended by Emergent, is June 12, 2017.

General

This announcement shall not constitute an offer to purchase or a solicitation of an offer to sell any securities. The complete terms and conditions of the Exchange Offer are set forth in the offer to exchange dated April 18, 2017, the related consent and letter of transmittal that have been sent to eligible holders of the Old Notes, the amended and restated consent and letter of transmittal, and the supplement number 1 to the offer to exchange. The Exchange Offer, Rights Offering and Consent Solicitation for the Old Notes is being made only through, and subject to the terms and conditions set forth in, the Exchange Offer documents and related materials.

The New Unsecured Notes will not initially be registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or in a transaction that is not subject to the registration requirements of the Securities Act or any state securities laws.

US Bank is acting as the Information Agent and Exchange Agent for the Exchange Offer. Questions concerning tender procedures and requests for additional copies of the related consents and letters of transmittal may be directed to US Bank at (651) 466-5622 (for brokers and banks) or (800) 934-6802 (for all others).

Neither Emergent's board of directors nor any other person makes any recommendation as to whether holders of Old Notes should exchange such notes, and no one has been authorized to make such a recommendation. Eligible holders of Old Notes must make their own decisions as to whether to exchange their Old Notes, and if they decide to do so, the principal amount of the Old Notes to exchange. Eligible holders of Old Notes should read carefully the Exchange Offer documents described above and related materials before any decision is made with respect to the Exchange Offer, Rights Offering and consent solicitation.

About Emergent Capital, Inc.

Emergent Capital, Inc. (OTCQB: EMGC) is a specialty finance company that invests in life settlements. More information about Emergent can be found at www.emergentcapital.com.