Investment to occur after FNHI becomes Ontario Reporting Issuer
Toronto, March 13, 2019 (GLOBE NEWSWIRE) — Franchise Holdings International Inc. (OTCQB: FNHI) (“FNHI”) announced that it will receive a $240,000 CDN investment from Gunpowder Capital Corp. (CSE: GPC), (CSE: GPC.PR.A), (OTCQB: GNPWF), (Frankfurt: YS6N), (“Gunpowder”) following its approval as an Ontario Reporting Issuer in the near future. FNHI will provide 4,600,000 pre consolidation Subscription Receipts to Gunpowder for $0.05 CDN per Receipt. When the Ontario Securities Commission approves FNHI as a Reporting Issuer, Gunpowder will automatically be provided with FNHI units, based on the pre consolidation receipts it holds.
When FNHI is approved as an issuer, FNHI Units issued to Gunpowder will comprise one Common FNHI Share and one full Purchase Warrant. Each FNHI Warrant will entitle Gunpowder to purchase one additional pre consolidation FNHI Common Share for $0.10 CDN for 24 months from the date of FNHI’s approval as a reporting issuer. FNHI may accelerate the warrant expiry at its sole discretion after the approval’s four-month anniversary. The acceleration can occur when FNHI shares’ volume-weighted average trading price is greater than $0.20 for any 10 consecutive trading days.
“The finalization of the long-awaited Gunpowder investment is an important moment for FNHI and its shareholders,” commented FNHI and Worksport CEO Steven Rossi. “We have secured over $1,250,000 U.S. in orders for our tonneau/truck bed covers since December 2018. New private label orders are arriving regularly and a recent visit to our Chinese supply chain has proven to be very encouraging for future production. Worksport is on track to achieve revenues representing at least a 1,100 per cent increase year over year, when compared with 2018.This is a very promising and exciting development for shareholders. We feel the good news will continue to occur, and welcome Gunpowder’s vote of confidence in our future prospects.”
About Franchise Holdings International
Franchise Holdings International Inc. is a strategic investment company. Franchise Holdings International’s strategy is to partner or invest in companies and provide them the tools to become the fastest growing businesses in their segments creating shareholder value in the process. Once a business of interest is acquired, invested in and/or partnered with, our mission is to further develop and accelerate the growth for those subsidiaries. Currently the Corporation has one fully owned subsidiary, Worksport Ltd. an innovative fast-growing manufacturer of high quality, functional, and aggressively priced tonneau/truck bed covers for pickup trucks like the F150, Sierra, Silverado, Canyon, RAM, and Ford F-Series. For more information please visit www.worksport.com
About Gunpowder Capital Corp.
Gunpowder Capital Corp. is a merchant bank and advisory services firm based in Toronto, Ontario, Canada. Gunpowder invests in both publicly traded and private businesses that have successful management teams and attractive economic models. Gunpowder partners with these businesses to support their growth initiatives with its proven methodology of appropriate financing and structured exits. Gunpowder offers debt financing, including mezzanine and bridge loans, equity financing and advisory services. Gunpowder is also building a portfolio of companies in which it takes a long-term position and view. For more information please visit www.gunpowdercapitalcorp.com
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.
For further information please contact:
Mr. Steven Rossi
CEO & Director
Franchise Holdings International.