Fronsac REIT announces $6.5M private placement




News Release

October 20, 2017
FRONSAC REIT ANNOUNCES A FINANCING

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Montreal (Québec) – (TSX-V: GAZ.UN) Fronsac Real Estate Investment Trust (“Fronsac REIT” or “Fronsac”) is pleased to announce its intention to undertake a prospectus exempt private placement of units raising up to a maximum offering amount of $6,500,000 (the “Offering”). Under the terms of the Offering, Fronsac may sell up to 13,000,000 units (the “Units”) at a price of $0.50 per Unit.
The net proceeds of the Offering will be used for acquisitions and for working capital and general real estate investment trust purposes.

Insiders of Fronsac have indicated their intention to subscribe to Units under the terms of the Offering. These subscriptions will benefit from the exemptions of the formal valuation and of the approval of the minority shareholders of sections 5.5 a) and 5.7 1) a) of Regulation 61-101 Respecting Protection of Minority Security Holders in Special Transactions, the amount to be subscribed by the insiders being less than 25 % of Fronsac’s market capitalization. The private placement is subject to compliance with applicable securities legislation and to the approval of the TSX Venture Exchange.

All Units issued under the Offering will be subject to a four-month plus one-day hold period from the closing date, pursuant to securities legislation and to the policies of the TSX Venture Exchange. A finder’s fee may be payable to qualified finders in accordance with applicable regulations. The Units have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration. The Offering is expected to close on or about November 17, 2017.

About Fronsac – Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high-quality triple net and management-free commercial real estate properties.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the Policy of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.

For further information please contact Jason Parravano at (450) 536-5328.