FRNT Financial Inc. Closes Private Placement

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TORONTO, May 21, 2024 (GLOBE NEWSWIRE) -- FRNT Financial Inc. (TSXV:FRNT) (OTCQB:FRFLF) (FSE:XZ3) (the “Company” or “FRNT”) today announces the closing of its previously announced brokered private placement offering (the “Offering”) for aggregate gross proceeds of approximately $1.24 million.

Under the terms of the Offering, the Company issued 2,070,000 units (“Units”), at a price of C$0.60 per Unit, for aggregate gross proceeds of approximately $1.24 million. Fort Capital Securities Ltd. (the “Agent”) acted as sole agent and bookrunner in connection with the Offering.

Each Unit consists of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (each, a “Warrant Share”) at an exercise price of C$0.90 until May 21, 2027, subject to accelerated expiry in the event the volume-weighted average closing price of the Common Shares on the TSX Venture Exchange (the “TSXV”) is $1.20 or more for ten (10) consecutive trading days, in which case the Company may accelerate the expiry date of the Warrants to the date that is thirty (30) days following the issuance of a news release by the Company announcing such acceleration.

The Company intends to use the net proceeds of the Offering to continue scaling its business and building out its capital base, and for working capital and general corporate purposes.

In connection with the Offering and as consideration for their services, the Company paid to the Agent a cash commission of $74,520 and issued to the Agent 124,200 warrants of ‎the Company (the “Broker Warrants”). Each Broker Warrant entitles the holder thereof to acquire one Unit at a price of C$0.60 at any time on or before May 21, 2027.

The Units were offered pursuant to the listed issuer financing exemption (the “Listed Issuer Financing Exemption”) as outlined in Part 5A of National Instrument 45-106 -- Prospectus Exemptions (“NI 45-106”) in the provinces of Alberta, British Columbia and Ontario as well as certain offshore jurisdictions. An offering document related to the portion of the Offering conducted under the Listed Issuer Financing Exemption has been filed on the Company’s profile on SEDAR+ at www.sedarplus.com.