Founders Advantage Capital Corp. Increases Size of Equity Offering

CALGARY, ALBERTA–(Marketwired – June 22, 2016) –

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Corporation“) is pleased to announce that it has increased the size of its recently announced non-brokered offering of common shares from 2,000,000 common shares to 2,500,000 common shares, with the aggregate gross proceeds increasing from C$8,000,000 to C$10,000,000. The common shares issued under the offering will be issued at a price of C$4.00 per share.

As previously announced by the Corporation on June 21, 2016, this non-brokered offering is being completed concurrently with a C$20 million bought deal offering pursuant to an agreement with Clarus Securities Inc. and TD Securities Inc. as co-lead underwriters on behalf of a syndicate of underwriters (collectively, the “Underwriters”) to purchase, on a bought deal private placement basis, 5,000,000 common shares of the Corporation at a price of C$4.00 per common share, for aggregate gross proceeds of C$20,000,000. The Corporation has also granted to the Underwriters an option to purchase an additional 750,000 common shares at the same price, exercisable by the Underwriters for a period of up to two days prior to closing for additional gross proceeds of up to C$3,000,000.

In the event the Underwriter’s option is exercised in full and the non-brokered offering is fully subscribed, the Corporation would receive aggregate gross proceeds of C$33,000,000.

The offering is scheduled to close on or about July 6, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada, and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended. The common shares will be subject to a customary four month hold period under Canadian securities laws.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

About Founders Advantage Capital Corp.

The Corporation is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and employs a passive and permanent investment approach. The Corporation has developed an investment approach to create long-term value for its shareholders and partner entrepreneurs (investees) by pursuing majority interest acquisitions of cash flow positive middle-market privately held entities. The Corporation seeks to win mandates by appealing to the segment of the market which is not aligned with traditional Private Equity control, royalty monetizations or related structures. The Corporation’s innovative platform offers disproportionate incentives (contractually) for growth in favour of our partner entrepreneurs. This unique platform is designed to appeal to entrepreneurs who believe in the growth of their businesses and who want the added ability to maintain operational control with a long-term and passive partner.

The Corporation’s common shares are listed on the TSX Venture Exchange under the symbol “FCF”.

For further information please refer to the Corporation’s website at www.advantagecapital.ca.

NEITHER THE 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 RELEASE.

Founders Advantage Capital Corp. Announces C$20,000,000 “Bought Deal” Financing

CALGARY, ALBERTA–(Marketwired – June 21, 2016) –

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Company”) is pleased to announce that it has entered into an agreement with Clarus Securities Inc. and TD Securities Inc. as co-lead underwriters on behalf of a syndicate of underwriters (collectively, the “Underwriters”) to purchase, on a bought deal private placement basis, 5,000,000 common shares of the Company at a price of C$4.00 per common share, for aggregate gross proceeds of C$20,000,000. The Company has also granted to the Underwriters an over-allotment option to purchase an additional 750,000 common shares at the same price, exercisable by the Underwriters for a period of up to two days prior to closing for additional gross proceeds of up to C$3,000,000.

In addition, the Company will proceed with an offering of up to 2,000,000 common shares at a price of C$4.00 per share via a non-brokered private placement for gross proceeds of up to $8,000,000.

The Company plans to use the net proceeds of this financing in furtherance of the Company’s business plan to acquire interests in private businesses, and for working capital requirements and general corporate purposes.

The offering is scheduled to close on or about July 6, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada, and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended. The common shares will be subject to a customary four month hold period under Canadian securities laws.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

About Founders Advantage Capital Corp.

Founders Advantage Capital Corp. is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and employs a passive and permanent investment approach. The Company has developed an investment approach to create long-term value for its shareholders and partner entrepreneurs (investees) by pursuing majority interest acquisitions of cash flow positive middle-market privately held entities. The Company seeks to win mandates by appealing to the segment of the market which is not aligned with traditional Private Equity control, royalty monetizations or related structures. The Company’s innovative platform offers disproportionate incentives (contractually) for growth in favour of our partner entrepreneurs. This unique platform is designed to appeal to entrepreneurs who believe in the growth of their businesses and who want the added ability to maintain operational control with a long-term and passive partner.

The Company’s shares are listed on the TSX Venture Exchange under the symbol “FCF”.

For further information please refer to the Company’s website at www.advantagecapital.ca.

Founders Advantage Capital Corp. Appoints Gary Mauris to Board of Directors

CALGARY, ALBERTA–(Marketwired – June 20, 2016) – Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Corporation“) is pleased to announce that Gary Mauris has been appointed to the Board of Directors of the Corporation. Mr. Mauris is the President and Chief Executive Officer of Dominion Lending Centres (“DLC”) and will be considered a non-independent director as the Corporation has recently acquired a 60% interest in DLC.

Stephen Reid, President and Chief Executive Officer of the Corporation commented: “In completing the transaction with DLC, we developed a deep respect for Gary as both a businessman and as an individual and believe he brings a unique perspective and valuable insight to our Board.”

The Board of Directors of the Corporation is now comprised of the following seven (7) individuals: Stephen Reid; Kingsley Ward; Gary Mauris; Anthony Lacavera; Peter McRae; Ron Gratton; and James Bell.

About Founders Advantage Capital Corp.

The Corporation is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and employs a passive and permanent investment approach. The Corporation has developed an investment approach to create long-term value for its shareholders and partner entrepreneurs (investees) by pursuing majority interest acquisitions of cash flow positive middle-market privately held entities. FA Capital seeks to win mandates by appealing to the segment of the market which is not aligned with traditional Private Equity control, royalty monetizations or related structures. The Corporation’s innovative platform offers disproportionate incentives (contractually) for growth in favour of our partner entrepreneurs. This unique platform is designed to appeal to entrepreneurs who believe in the growth of their businesses and who want the added ability to maintain operational control with a long-term and passive partner.

The Corporation’s common shares are listed on the TSX Venture Exchange under the symbol “FCF”.

For further information please refer to the Corporation’s website at www.advantagecapital.ca.

NEITHER THE 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 RELEASE.

Founders Advantage Capital Corp. Completes Acquisition of a Majority Interest in Dominion Lending Centres

CALGARY, ALBERTA–(Marketwired – June 3, 2016) –

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Corporation”) is pleased to announce that it has completed its previously announced acquisition of a 60% majority interest (the “Transaction”) in the Dominion Lending Centres group of companies (“DLC”) for aggregate consideration of $73,887,888 (the “Purchase Price”). The Purchase Price was satisfied by the issuance of 4,761,905 class A common shares of the Corporation (the “FCF Shares”) at an ascribed price of $2.625 per FCF Share and a cash payment of $61,387,888. The founders of DLC, comprised of Gary Mauris, Christopher Kayat and certain other minority shareholders (the “Founders”), have retained a 40% interest in DLC and they will continue to manage the day-to-day business and operations of DLC. Following closing, the business of DLC will be overseen by a combined board of directors, consisting of Gary Mauris, Christopher Kayat and three nominees of the Corporation, initially Stephen Reid, Ron Gratton and James Bell.

The Transaction has been structured to provide the Corporation with 60% of the first $14.6 million of annual distributions (the “Annual Threshold”) paid by DLC to its securityholders, with the Founders receiving 40% of such Annual Threshold. The Annual Threshold was fixed based on the anticipated 2016 cash flow for DLC based on current information available to the parties, however, all cash distributions by DLC to its securityholders are subject to Board approval. To the extent that any distributions are paid in a year in excess of the Annual Threshold, Founders who remain active in the business will receive 70% of such excess distributions, with the Corporation receiving the remaining 30% of such excess distributions. In addition, with respect to any liquidity event, the net proceeds of disposition will be allocated amongst the Corporation and the Founders based upon their proportionate shares of distributions received as at the date of the liquidity event. As a result, the Transaction provides strong incentives for management to pursue continued free cash flow and earnings growth.

The FCF Shares issued as partial consideration for the Transaction will be subject to a four-month hold period in accordance with applicable securities laws.

For further information on the Transaction please refer to the Corporation’s press release dated May 13, 2016.

Concurrent with closing of the Transaction, the net proceeds of the Corporation’s previously announced offering of subscription receipts, which closed April 14, 2016, were released from escrow in partial satisfaction of the cash portion of the Purchase Price. As a result, as of the release date of June 3, 2016, an aggregate of 13,709,291 FCF Shares (after giving effect to the consolidation of the Corporation’s common shares on the basis of one common share on a post-consolidation basis for fifteen (15) common shares on a pre-consolidation basis which occurred on May 16, 2016) were issued at the release time upon the automatic exercise of the subscription receipts into FCF Shares. These FCF Shares remain subject to a hold period until August 15, 2016.

TD Securities acted as sole financial advisor to DLC in connection with the Transaction. Bennett Jones LLP acted as legal counsel to the Corporation and Blake, Cassels & Graydon LLP acted as legal counsel to DLC in connection with the Transaction.

About DLC

DLC group of companies is Canada’s leading and largest mortgage brokerage with $33 billion in funded mortgages in 2015. DLC group of companies operates through three main subsidiaries, Dominion Lending Centres, Mortgage Centre Canada and Mortgage Architects and has operations in all 13 provinces and territories. DLC group of companies’ extensive network includes over 5,000 agents, 325 franchises and 650 locations. Headquartered in British Columbia, DLC group of companies was founded in 2006 by Gary Mauris and Chris Kayat.

About Founders Advantage Capital Corp.

The Corporation is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and employs a passive and permanent investment approach. The Corporation has developed an investment approach to create long-term value for its shareholders and partner entrepreneurs (investees) by pursuing majority interest acquisitions of cash flow positive middle-market privately held entities. The Corporation seeks to win mandates by appealing to the segment of the market which is not aligned with traditional Private Equity control, royalty monetizations or related structures. The Corporation’s innovative platform offers disproportionate incentives (contractually) for growth in favour of our partner entrepreneurs. This unique platform is designed to appeal to entrepreneurs who believe in the growth of their businesses and who want the added ability to maintain operational control with a long-term and passive partner.

The FCF Shares are listed on the TSX Venture Exchange under the symbol “FCF”.

For further information please refer to the Corporation’s website at www.advantagecapital.ca.

The TSX Venture Exchange has in no way passed upon the merits of the Transaction and has neither approved nor disapproved of the contents of the news release.

NEITHER THE 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 RELEASE.

Not an Offering under US Securities Laws

The FCF Shares that will be issued in connection with the Transaction have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Caution concerning forward-looking information

This news release or documents referred to herein contain “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws, including statements regarding the Annual Threshold amount being the anticipated cash flow for DLC for 2016. These information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “intend” and similar terms, and reflect assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and, accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include general economic, market and business conditions, risks associated with the Canadian housing sector, fluctuations in interest rates, housing demand in the markets in which DLC and its franchisees operate, DLC’s ability to renew and expand upon its franchise arrangements, as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. The Corporation disclaims any obligation to update or revise any forward-looking information or statements except as may be required by applicable law.

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