Founders Advantage Capital Corp. Comments on Recent Trading; Announces Intention to Implement Normal Course Issuer Bid and Dividend Reinvestment Plan
Calgary, Alberta – June 19, 2018 – (TSX-V: FCF) – In light of the recent share price decline, Founders Advantage Capital Corp. (the “Corporation”) would like to confirm that there have been no material adverse changes at any of its four investee companies nor at its corporate head office. As the Corporation’s management does not believe the current trading price of the Corporation’s shares properly reflects the inherent value of the Corporation’s investments, the Corporation intends to implement a normal course issuer bid (“NCIB”) to acquire shares for the benefit of all shareholders. Further, the Corporation also intends on implementing a dividend reinvestment plan (“DRIP”) to make it easier for existing shareholders to reinvest their quarterly dividends in the Corporation’s shares.
As the market is currently valuing the Corporation significantly below the value of the capital deployed, and given the performance of the Corporation’s investments, the Corporation believes that implementing an NCIB is in the best interest of all shareholders. Stephen Reid, President and CEO commented: “We’ve made four strong investments for aggregate consideration of $145.6 million. Net of corporate debt, the Corporation has deployed in excess of $94.5 million in equity or approximately $2.48 per share, without any consideration for portfolio growth or our transaction pipeline. At these prices, acquiring our own shares is an easy investment decision.”
Prior to trading in the Corporation’s shares, investors are encouraged to review the Corporation’s interim and annual financial statements and associated management’s discussion and analysis to understand the Corporation’s financial position.
The NCIB remains subject to approval by the TSX Venture Exchange and the Corporation’s lender. Further details regarding the NCIB and the DRIP will be made available in subsequent news releases.
About Founders Advantage Capital Corp.
The Corporation is listed on the TSX Venture Exchange as an Investment Issuer (Tier 1) and employs a long-term investment approach. The Corporation has developed an investment approach to create long-term value for its shareholders and partner entrepreneurs (investees) by pursuing controlling interest acquisitions of cash flow positive, premium 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 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 continue to manage the business with a long-term 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.
Contact information for the Corporation is as follows:
Senior Vice-President, 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.