Fronsac Capital Inc.
TSX VENTURE : GAZ

Fronsac Capital Inc.

July 14, 2010 12:42 ET

Canadian Prodigy Capital Corporation Completes Its Qualifying Transaction With Fronsac Capital Inc. Subsidiary

SAINT-JEAN-BAPTISTE-DE-ROUVILLE, QUEBEC--(Marketwire - July 14, 2010) - Fronsac Capital Inc. ("Fronsac") (TSX VENTURE:GAZ), is proud to announce the closing of the qualifying transaction of Canadian Prodigy Capital Corporation ("Prodigy") with Fronsac, through the amalgamation of Prodigy with a wholly owned subsidiary of Fronsac (the "Qualifying Transaction").

Let us remind the reader that on May 10, 2010, Fronsac and Prodigy announced the conclusion of a letter of intent which concerned the amalgamation of Prodigy with Investissement Fronsac Inc., a wholly owned subsidiary of Fronsac, into a new entity called Investissements Immobiliers Prodige Inc., as well as the consideration paid to Prodigy shareholders, namely one Fronsac share for each block of two shares held in Prodigy. Moreover, the agreement between Prodigy and Fronsac provided that Prodigy had to hold $585,000 in liquidities and current assets, net of its liabilities, as of the closing date of the amalgamation, a requirement which has been met at closing. Prodigy shareholders have approved the Qualifying Transaction at the meeting held to that effect last June 17.

Following closing of the Qualifying Transaction, Investissements Immobiliers Prodige Inc. is now a wholly owned subsidiary of Fronsac. Consequently, Prodigy shares are now delisted from the NEX quote and, as previously announced, the shareholders of Prodigy have received one common share of Fronsac for each block of two shares held in Prodigy. In total, the 4,700,000 common shares of Prodigy that were issued and outstanding prior to the amalgamation were converted into 2,350,000 common shares of Fronsac. All Prodigy stock options were cancelled. Fronsac now has 13,790,000 common shares issued and outstanding.

Additional information concerning the Qualifying Transaction, including the Prodigy proxy circular dated May 25, 2010, is available on SEDAR, at www.sedar.com.

Appointment of Mr. Patrick Bazinet as Director of Fronsac

Fronsac also announces the appointment of Mr. Patrick Bazinet to the board of Fronsac. Mr. Bazinet is cofounder of the firm Jarry Bazinet Legal & Business Counsellors Inc., where he practices tax, corporate, commercial, transactional and securities law. Since 2007, he has been serving as director of Mercator Transport Group Corporation, a corporation listed on the TSX Venture Exchange. Mr. Bazinet is a member of the Quebec Bar, and holds a Master's degree in tax law from HEC Montréal.

About Fronsac Capital

Fronsac is a Canadian corporation listed on the TSX Venture Exchange engaged in the commercial real estate business. Fronsac currently holds two properties, one bordering highway 20 in Mont St-Hilaire (Quebec) including a McDonald's restaurant, a convenience store and gas station, the other located in St-Jean-sur-le-Richelieu (Quebec) bordering highway 35 including a convenience store, a Shell gas station and car wash. These two properties are the main assets of Fronsac.

Fronsac is always on the lookout for real estate properties which, ideally, offer a combination of gas station, convenience store and fast food services.

Neither TSX Venture Exchange nor its Regulatory 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.
    Mr. Michel Lassonde
    President and CEO
    450-536-5328