CALGARY, ALBERTA–(Marketwired – July 19, 2016) – Founders Advantage Capital Corp. (TSX VENTURE:FCF) (the “Corporation”) is pleased to announce that it has entered into a commitment letter (the “Commitment Letter”) with Alberta Treasury Branches (“ATB”) wherein ATB has agreed to provide the Corporation a new $22 million credit facility comprised of a $17 million revolving facility (“Facility A”) and a $5 million non-revolving facility (“Facility B”). The borrowings from Facility A and Facility B will be used to: (i) repay the Corporation’s existing $20 million bridge loan (the “Bridge Loan”), which was used to facilitate the Corporation’s acquisition of a 60% interest in Dominion Lending Centres (“DLC”); and (ii) for working capital and general corporate purposes. Facility A and Facility B bear interest at a floating rate equal to the Prime Rate as set by ATB from time to time plus a margin of 3.00%-3.75% (initially 3.00%) and mature on the earlier of the date on which repayment is demanded by ATB or December 31, 2016. The ATB facilities are secured by a pledge of the Corporation’s interest in DLC as well as a general security agreement over all of the Corporation’s assets. A copy of the Commitment Letter will be filed by the Corporation on SEDAR.

Pursuant to the terms of the Bridge Loan, the Corporation is required to provide the bridge lender with 105 days’ notice prior to repayment of the loan or paying the bridge lender the equivalent amount of interest for such 105-day notice period. As the Bridge Loan is being repaid in full, the Corporation will be obligated to pay the bridge lender interest for the 105-day notice period.

About Founders Advantage Capital Corp.

The Corporation is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and employs a passive and permanent investment approach. The Corporation has developed an investment approach to create long-term value for its shareholders and partner entrepreneurs (investees) by pursuing majority interest acquisitions of cash flow positive middle-market privately held entities. The Corporation seeks to win mandates by appealing to the segment of the market which is not aligned with traditional Private Equity control, royalty monetizations or related structures. The Corporation’s innovative platform offers disproportionate incentives (contractually) for growth in favour of our partner entrepreneurs. This unique platform is designed to appeal to entrepreneurs who believe in the growth of their businesses and who want the added ability to maintain operational control with a long-term and passive partner.

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.