Fronsac Announces the Terms of Its Public Offering of Units and Private Placement of Convertible Debentures

Not for Distribution to United States Newswire Services or for Dissemination in the United States

MONTREAL, Nov. 13, 2020 (GLOBE NEWSWIRE) -- (TSX-V: FRO.UN) Fronsac Real Estate Investment Trust (the “REIT” or “Fronsac”) is pleased to announce the terms of its previously announced public offering (the “Public Offering”) of units of Fronsac (the “Units”) and of its non-brokered private placement (the “Private Placement”) of convertible debentures of Fronsac (the “Convertible Debentures”).

Public Offering of Units
Under the Public Offering, the Units will be offered at a price of $6.50 for gross proceeds of up to $15.0 million. The Public Offering is being made through a syndicate of agents co-led by Paradigm Capital Inc. and Canaccord Genuity Corp., acting as joint bookrunners, and including Desjardins Securities Inc., Laurentian Bank Securities Inc., Industrial Alliance Securities Inc. and Echelon Wealth Partners Inc. (collectively, the “Agents”). The REIT has granted the Agents an option to offer for sale up to an additional $2.25 million in Units, on the same terms and conditions, exercisable in whole or in part at any time until 30 days after closing, to cover any over-allotments, if any, and for market stabilization purposes. The Public Offering is expected to close on or about November 25, 2020 and is subject to customary conditions, including the entering into of a definitive agency agreement and receipt of all regulatory approvals, including the approval of the TSX Venture Exchange (the “TSX-V”). The Units will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada.

The Public Offering will be made on a “best efforts” agency basis and is subject to market conditions, and there can be no assurance as to whether or when the Public Offering may be completed, or as to the final size of the Public Offering.

Certain trustees and members of management of the REIT have indicated an interest in purchasing Units as part of the Public Offering.

A copy of the preliminary short form prospectus of the REIT is available under the REIT’s profile on SEDAR at www.sedar.com or may be obtained by contacting the Agents. The REIT’s preliminary short form prospectus is subject to completion or amendment. There will not be any sale or any acceptance of an offer to buy the Units until a receipt for the final short form prospectus has been issued and a copy thereof has been sent to the purchaser.