Effective December 31, 2020, Founders Advantage Capital Corp. completed its acquisition of all of the limited partnership units of Dominion Lending Centres Limited Partnership (“DLC LP”) that the Corporation did not otherwise own in exchange for an aggregate of 26,774,054 non-voting series 1 class B preferred shares (the “Preferred Shares”). The actual number of Preferred Shares is an arbitrary number for administrative convenience as the Preferred Shares have fixed entitlements and are not convertible into Common Shares. The Preferred Shares are non-voting and non-convertible into Common Shares, will not be listed on any exchange, and will provide the Preferred Shareholders with similar economic and legal entitlements as the acquired units of DLC LP. The terms and conditions of the Preferred Shares are set out in the Corporation’s information circular dated November 9, 2020 (which is available on SEDAR) and further outlined in the following documents:

The following three documents, the Investor Rights Agreement, Preferred Shares Terms and Corporate Reorganization Q&A outline the key Preferred Share terms and conditions as well as commentary as to why Preferred Shares were issued to acquire the DLC LP units the that the Corporation did not otherwise own.