Fronsac Capital Inc.

Fronsac Capital Inc.

July 16, 2009 22:03 ET

Fronsac Capital Acquires a Real Estate Property Located in St-Jean-sur-le-Richelieu

MONTREAL, QUEBEC--(Marketwire - July 16, 2009) - Fronsac capital inc. (TSX VENTURE:GAZ) is pleased to announce the acquisition of a real estate property in St-Jean-sur-le-Richelieu for a total consideration of $ 3 450 000. The transaction was concluded through the acquisition of all the oustanding shares of 9208-9226 Quebec inc. ("9208"). The said property is the only asset of 9208. The selling shareholders are M. Normand Perreault, Mrs Nicole Perreault and Les Entreprises Claude Potvin inc. and they are all dealing at arm's length with Fronsac.

The real estate property is comprised of two buildings located on Saint-Luc Boulevard alongside highway 35 which links St- Jean-sur-le-Richelieu and Montreal. The first building houses a convenience store and a Shell gas station end the second buildings houses 3 car wash.

The total consideration of $3 450 000 was paid in full at the closing. The property was mortgaged with a Canadian bank up to an amount of $ 2 100 000. Fronsac has also entered into the following private placements:

- A placement of debentures in the amount of $300 000 with 150 000 warrants enabling the holder thereof to subscribe to shares of Fronsac at a price of $0.25 per share for a period of 5 years from the date of issuance. The debentures will mature in 3 years and bear interest at the rate of 8% per year. There are three subscribers and two of them are directors of Fronsac.

- A placement of 200 000 common shares at a price of $0.25 per share for a total consideration of $50 000.

A Note in the amount of $250 000 has been issued by 9208 to a person dealing at arm's length with Fronsac. The Note has a term of 5 years, bears interest at a rate of 10% per year and is secured with a second rank mortgage on the property. 100 000 warrants have also been issued to the bearer of the Note by Fronsac. The said warrants enable the holder thereof to subscribe to shares of Fronsac for a period of 5 years at a price of $0.25 per share.

Following the said placements, Fronsac will have 11 440 000 common shares issued and outstanding and 250 000 warrants. All the securities issued pursuant to the private placements including the warrants issued to the holder of the note, must be kept by their holders until November 10, 2009.

Note Regarding Forward-Looking Statements

This news release contains forward-looking information, including "forward-looking statements" within the meaning of applicable Canadian securities laws. Such forward-looking statements include, without limitation, statements regarding the timing, terms and conditions and anticipated consequences of the possible transaction. Where statements by Fronsac Capital express or imply an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Fronsac Capital expressly disclaims any obligation to release publicly revisions to any forward looking statement to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

About Fronsac

Fronsac is a real estate company dedicated to purchasing real estate properties located alongside highways or major roads and used exclusively by convenience stores, service station and fast food restaurants.

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 release.

Contact Information

  • Fronsac Capital inc.
    Michel Lassonde
    President and CEO