The Futura Loyalty Group Inc.
TSX VENTURE : FUT

The Futura Loyalty Group Inc.

February 04, 2010 15:21 ET

The Futura Loyalty Group Completes First Tranche of Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Feb. 4, 2010) - The Futura Loyalty Group Inc. (TSX VENTURE:FUT) (the "Company") today announced that it has closed $675,000 in the first tranche of a current financing of up to $1,000,000 by way of a private placement (the "Financing") of equity units ("Units"). The Financing will be used primarily to help fund ongoing sales and operations, particularly to implement acquisitions of new merchants to launch both the Aeroplan® Miles and Futura Rewards™ Programs. The first closing was completed on February 4, 2010 (the "Closing Date"). All members of the board of directors and senior management are participating in the first closing of the Financing.

Each Unit will cost $0.05 and consist of one common share of the Company (a "Common Share") and one Common Share purchase warrant ("Common Share Warrant"). Each Common Share Warrant will give 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 of the Financing.

Belweather Capital Partners is acting as 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. There are no cash commissions or Broker Warrants payable on any of the funds raised in the initial closing of the Financing. 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.

All of the securities issued on the Closing Date are subject to restrictions on resale until June 4, 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. The Company currently has 149,088,876 common shares issued and outstanding.

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 Miles. The company also licenses its proprietary technology solutions to companies and organizations looking to operate private label rewards programs.

TM Trademark of The Futura Loyalty Group Inc.

® Aeroplan is a registered trademark of Aeroplan Canada Inc.

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

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