Press Release: FA Capital : Founders Advantage Provides Transaction Update

CALGARY, Alberta, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Founders Advantage Capital Corp. (TSX-V: FCF) ("FAC" or the "Corporation") is pleased to announce that it has entered into a subscription agreement with Belkorp Industries Inc. ("Belkorp"), whereby Belkorp has agreed to purchase 4,285,714 class A common shares of the Corporation (the "Private Placement") for aggregate gross proceeds of $7.5 million (being a price of $1.75 per share). Further to the proposed acquisition of Dominion Lending Centres (the "Proposed Acquisition"), which transaction was previously announced by the Corporation on October 5, 2020 (the "Initial Reorganization Press Release"), the proceeds from the Private Placement will be used by the Corporation to fund cash portion of the Inversion Right Termination Transaction (as defined in the Initial Reorganization Press Release). Completion of the Proposed Acquisition, the Inversion Right Termination Transaction and the Private Placement are subject to various conditions, including the requirement for shareholder, lender and TSXV approval. In the event that all necessary approvals are received, the Corporation anticipates completing the transactions on or about December 31, 2020. The Private Placement is conditional on completion of the Proposed Acquisition. If the Corporation is unable to obtain the necessary approvals to complete the Proposed Acquisition, the Corporation will not proceed with the Private Placement.