Founders Advantage Capital Corp. Announces New Credit Facility

CALGARY, ALBERTA–(Marketwired – July 19, 2016) – Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Corporation”) is pleased to announce that it has entered into a commitment letter (the “Commitment Letter”) with Alberta Treasury Branches (“ATB”) wherein ATB has agreed to provide the Corporation a new $22 million credit facility comprised of a $17 million revolving facility (“Facility A”) and a $5 million non-revolving facility (“Facility B”). The borrowings from Facility A and Facility B will be used to: (i) repay the Corporation’s existing $20 million bridge loan (the “Bridge Loan”), which was used to facilitate the Corporation’s acquisition of a 60% interest in Dominion Lending Centres (“DLC”); and (ii) for working capital and general corporate purposes. Facility A and Facility B bear interest at a floating rate equal to the Prime Rate as set by ATB from time to time plus a margin of 3.00%-3.75% (initially 3.00%) and mature on the earlier of the date on which repayment is demanded by ATB or December 31, 2016. The ATB facilities are secured by a pledge of the Corporation’s interest in DLC as well as a general security agreement over all of the Corporation’s assets. A copy of the Commitment Letter will be filed by the Corporation on SEDAR.

Pursuant to the terms of the Bridge Loan, the Corporation is required to provide the bridge lender with 105 days’ notice prior to repayment of the loan or paying the bridge lender the equivalent amount of interest for such 105-day notice period. As the Bridge Loan is being repaid in full, the Corporation will be obligated to pay the bridge lender interest for the 105-day notice period.

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.

Founders Advantage Capital Corp. Announces Option Grant

CALGARY, ALBERTA–(Marketwired – July 7, 2016) – Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Corporation“) announced today that it has granted 1,802,500 incentive stock options (the “Options”) pursuant to the Corporation’s Stock Option Plan (the “Plan”) to certain directors, officers and employees of the Corporation. The Options are exercisable at a price of $4.40 per share, the last closing price per share on the Corporation’s common shares on the TSX Venture Exchange (“TSXV”) on the date of the grant. The options are exercisable for a term of five years expiring on July 7, 2021 and will vest one-third immediately and one-third on the first and second anniversary dates from the date of grant, or as otherwise required by the TSXV. The grant is subject to regulatory approval.

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. Completes Equity Financings for Approximately $33 Million

CALGARY, ALBERTA–(Marketwired – July 6, 2016) –

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

Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Corporation” or “FAC“) is pleased to announce that it has completed its previously announced private placement offering of common shares of the Corporation at a price of $4.00 per class “A” common share by way of concurrent brokered and non-brokered offerings for aggregate gross proceeds of $33,289,340 (collectively, the “Offering“). Pursuant to the Corporation’s brokered offering (the “Brokered Offering“) with Clarus Securities Inc. and TD Securities Inc. as co-lead underwriters on behalf of a syndicate of underwriters that included Industrial Alliance Securities Inc., Desjardins Securities Inc., CIBC World Markets Inc. and GMP Securities L.P. (collectively, the “Underwriters“), the Corporation issued an aggregate of 5,027,500 common shares for gross proceeds of $20,110,000. Pursuant to the Corporation’s non-brokered offering (the “Non-Brokered Offering“), the Corporation issued an aggregate of 3,294,835 common shares for gross proceeds of $13,179,340.

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

In connection with the Brokered Offering, the Corporation paid to the Underwriters a cash commission equal to 6% of the aggregate gross proceeds of the Brokered Offering, plus reasonable expenses and disbursements.

In connection with the Non-Brokered Offering, the Corporation paid cash commissions to PI Financial Corp., Mackie Research Capital Corporation, Canaccord Genuity Corp. and BMO Nesbitt Burns Inc. (collectively, the “Finders“), in each case equal to 6% of the aggregate gross proceeds raised by such Finder pursuant to the Non-Brokered Offering.

Under Canadian securities law, the common shares are subject to a customary hold period until November 7, 2016.

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.

THE SECURITIES REFERRED TO IN THIS NEWS RELEASE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT SUCH REGISTRATION OR AN APPLICABLE EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION. ANY PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES MUST BE MADE BY MEANS OF A PROSPECTUS CONTAINING DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.

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.

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