The Futura Loyalty Group Inc.
TSX VENTURE : FUT

The Futura Loyalty Group Inc.

April 19, 2010 16:23 ET

Futura Completes Final Tranche of Private Placement

TORONTO, ONTARIO--(Marketwire - April 19, 2010) - The Futura Loyalty Group Inc. (TSX VENTURE:FUT) (the "Company") today announced that it has completed the final tranche of its private placement announced on February 4, 2010 (the "Financing") in the amount of $150,000 in equity units ("Units"), the full amount of the over-allotment announced on April 7, 2010. The Company raised total gross proceeds from the Financing in the amount of $1,150,000. Each Unit costs $0.05 (the "Issue Price") and consists of one common share of the Company (a "Common Share") and one Common Share purchase warrant ("Common Share Warrant"). Each Common Share Warrant gives the holder the right to purchase one Common Share at a price of $0.10 for a period of 5 years from the closing date.

Belweather Capital Partners acted as lead agent to complete the Financing and is entitled to a cash commission of 6% of the gross proceeds on eligible orders placed by Belweather and broker warrants (the "Broker Warrants") exercisable for that number of Common Shares which is equal to 6% of the gross proceeds on eligible orders placed by Belweather divided by $0.05. The Broker Warrants shall be exercisable by payment of $0.05 per Broker Warrant for a period of 24 months after the closing date. Belweather Capital is an exempt market dealer that focuses on earlier stage technology companies. David Beutel and David Campbell are shareholders of Belweather and are also directors of the Company. Raymond James Ltd. also assisted in introducing certain subscribers to the Financing and will be paid a portion of the aggregate commission payable. The aggregate cash commission payable for the Financing is $34,500 and the aggregate Broker Warrants to be issued is 690,000.

All of the securities issued on the closing date are subject to restrictions on resale until August 20, 2010 as prescribed under applicable securities laws and the policies of the TSX Venture Exchange ("TSXV"). The private placement is subject to final approval by the TSXV. 

Futura closed $675,000 in the first tranche of the Financing and a further $325,000 in the second tranche. Funds generated from the Financing are being used primarily to help finance continuing sales and operations, particularly to implement acquisitions of new merchants to launch both the Aeroplan and Futura Rewards programs.

The Company also announced that it has closed a shares for debt transaction whereby the Company issued a total of 2,405,606 common shares ("Debt Settlement Shares") at a deemed price of $0.05 in connection with converting $60,280.37 in accrued interest on certain convertible debentures described in a press release dated February 17, 2009 into common shares of the Company, and in connection with the settling of an outstanding debt for consulting services in the amount of $60,000. The issuance of the Debt Settlement Shares will not result in a change of control. The shares issued pursuant to the debt for consulting services are subject to restrictions on resale until August 19, 2010. The Company currently has 161,760,733 common shares issued and outstanding.

About The Futura Loyalty Group Inc.

The Futura Loyalty Group markets a suite of coalition rewards programs to mid size retail and service businesses nationally. Currently the two programs being offered are Futura Rewards™, a proprietary cash rewards program, as well as Aeroplan. The company also licenses its proprietary technology solutions to companies and organizations looking to operate private label rewards programs.

For more information, visit www.TFLG.ca.

(TM) Trademark of The Futura Loyalty Group Inc. 

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

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