Founders Advantage Completes Sale of its Interest in Astley Gilbert Limited
CALGARY, Alberta, Sept. 30, 2019 (GLOBE NEWSWIRE) -- Founders
Advantage Capital Corp. (TSX-V: FCF) (“FAC” or the
“Corporation”) today announced that it has completed the sale
of its 50% interest in Astley Gilbert Limited (“AG”) for
aggregate gross proceeds of $17.0 million (the “Purchase
Price”). The Purchase Price is comprised of: (i) a cash
payment of $14.2 million; and (ii) the assumption by AG of
the interest-bearing promissory note previously issued by the
Corporation to Wayne Wilbur (the President of AG) on October
31, 2017 (the “Promissory Note”). As at the closing
date, the Promissory Note had a principal balance owing of
$2.5 million and accrued interest of $287,500.
The Corporation used the cash proceeds from the transaction to pay-down its corporate credit facility with Sagard Credit Partners (“Sagard”). The Corporation made a principal payment of CAD$11.43 million, bringing the principal balance owing to approximately CAD$43.65 million, and the remaining cash proceeds of CAD$2.77 million were applied against the make-whole obligation (owed to Sagard for repaying debt prior to maturity of the facility).
For the purposes of the disclosure herein, the Corporation has used a CAD/USD foreign exchange rate of $1.3243.
About Founders Advantage Capital
The Corporation is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and employs a permanent investment approach.
The Corporation’s common shares are listed on the TSX Venture
Exchange under the symbol “FCF”.
For further information, please refer to the Corporation’s
website at www.advantagecapital.ca.
Contact information for the Corporation is as follows:
President and CEO
Chief Financial Officer
Sr. VP, Capital Markets
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.
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