CALGARY, Alberta, Dec. 10, 2019 (GLOBE NEWSWIRE) -- Founders Advantage Capital Corp. (TSX-V: FCF) (“FAC” or the “Corporation”) is pleased to announce that it has entered into foreign currency forward contracts (the “Hedge Agreements”) to partially mitigate foreign currency exchange risk in connection with its USD-denominated corporate credit facility which has current principal balance of USD$32.6 million (the “Credit Facility”). The Hedge Agreements require the Corporation to purchase USD$15.0 million at a fixed CAD/USD exchange rate of $1.3370 on June 14, 2022 (which coincides with the maturity date of the Credit Facility). The Corporation has the ability to complete additional Hedge Agreements up to USD$10.0 million. The Corporation originally converted the proceeds from the Credit Facility into CAD in 2017 at an exchange rate of $1.3234.
James Bell, President and Chief Executive Officer of the Corporation commented: “We believe in the growth plans for our three assets and in our plan to continue to pay down corporate debt from excess free cash flow. The Hedge Agreements reduce our exposure to adverse currency swings on our USD denominated debt, keeping our focus on building equity value from our three core assets.”
The Corporation also announces that it has cancelled 620,000 stock options held by certain directors which had an exercise price of $4.40 and an expiry date of July 7, 2021. The options were voluntarily surrendered.
About Founders Advantage Capital Corp.
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:
| James Bell President & Chief Executive Officer 403-455-2218 jbell@advantagecapital.ca | Robin Burpee Chief Financial Officer 403-455-9670 rburpee@advantagecapital.ca | Amar Leekha Sr. Vice-President, Capital Markets 403-455-6671 aleekha@advantagecapital.ca |
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.