Founders Advantage Capital Corp.
TSX VENTURE : FCF

Founders Advantage Capital Corp.

June 21, 2016 08:25 ET

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.

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