The Futura Loyalty Group Inc.

The Futura Loyalty Group Inc.

September 13, 2010 10:07 ET

Futura Completes First Tranche of Loan Transaction

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2010) - The Futura Loyalty Group Inc. (TSX VENTURE:FUT) today announced that it closed an initial tranche of a loan transaction in the amount of $200,000. The Company expects to close a second tranche of up to $200,000 prior to September 30, 2010. These proceeds will be used for working capital to fund Futura business expansion initiatives. The secured subordinated notes issued pursuant to the loan are repayable on September 9, 2011, or earlier at the Company's option without any penalty. The notes bear interest at a rate of 15% per annum with interest accruing until the maturity date and include a 5% loan fee that will be payable on the maturity date. 

As additional consideration for the loan, the Company will grant to the lenders an aggregate of up to 800,000 bonus common shares (the "Bonus Shares") in accordance with the TSX Venture Exchange ("TSXV") policies. The Bonus Shares will be granted upon closing the second tranche and will be subject to restrictions on resale for a four month period from the date of the second closing. The issuance of the bonus shares is subject to final approval by the TSXV. 

One of the lenders, David Beutel, is a director of the Company and is a related party pursuant to Multilateral Instrument 61-101. The initial closing was completed within 21 days of the date of filing of a material change report in connection with the closing. Management of the Company has determined that such closing was reasonable and necessary in the circumstances.

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.

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Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including any risks and uncertainties described herein, as well as the risks and uncertainties detailed in our final long form prospectus dated November 29, 2005 filed with the regulatory authorities.

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

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