FRNT FINANCIAL INC. ANNOUNCES CLOSING OF ITS INITIAL PUBLIC OFFERING
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
TORONTO, April 12, 2022 /CNW/ - FRNT Financial Inc. ("FRNT" or the "Company") is pleased to announce that it has closed its initial public offering of 4,000,000 common shares (the "Common Shares") of the Company at a price of $1.50 per Common Share for gross proceeds of $6,000,000 (the "Offering"). The Offering was made by PI Financial Corp. as lead agent (the "Lead Agent"), and Canaccord Genuity Corp. and Haywood Securities Inc., which together with the Lead Agent, are collectively referred to as the "Agents". In connection with the Offering, the Agents received a cash fee equal to 7% of the gross proceeds of the Offering and an aggregate of 200,000 broker warrants (the "Broker Warrants") with each such Broker Warrant entitling the Agents to purchase one Common Share at an exercise price of $1.50 per Common Share until April 12, 2025. The Lead Agent also received a corporate finance work fee for services rendered to the Company in connection with the Offering.
The Common Shares are listed on the TSX Venture Exchange under the symbol "FRNT" and are expected to commence trading on April 19, 2022.
Certain directors of FRNT participated in the Offering and purchased an aggregate of 254,600 Common Shares. Participation of such insiders in the Offering constituted a "related party transaction" as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), but was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities issued to the insiders nor the consideration paid by the insiders exceeded 25% of FRNT's market capitalization. None of the directors or officers of FRNT expressed any contrary views or disagreements with respect to the foregoing.
The securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to or for the account or benefit of a person in the United States or a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act, a "U.S. Person") unless an exemption from the registration requirements of the U.S. Securities Act is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or to or for the account or benefit of a person in the United States or a U.S. Person.
About FRNT
FRNT is a next-generation capital markets platform specializing in cryptocurrency and alternative markets. Operating out of Toronto, Ontario, FRNT was founded in 2018 and is led by its Chief Executive Officer, Stéphane Ouellette.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION 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.
Cautionary Note Regarding Forward-Looking Information
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: the general risks associated with the speculative nature of the Company's business, current global financial conditions, uncertainty of additional capital, price volatility, no history of earnings, government regulation in the industries in which the Company operates, political and economic risk, absence of public trading market, arbitrary offering price, dilution to Common Shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends as well as those factors discussed in the section entitled "Risk Factors" in the Company's final prospectus. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The forward-looking statements and forward-looking information contained in this press release are included for the purpose of providing investors with information to assist them in understanding the offering as well as the Company's expected financial and operational performance and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.
SOURCE FRNT Financial Inc.
Stéphane Ouellette, Chief Executive Officer, FRNT Financial Inc., 1-833-222-3768
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