Fronsac Announces Closing of its Financing

MONTREAL, QUEBEC -Fronsac Real Estate Investment Trust (the ” Fronsac REIT ” or ” Fronsac “) (TSX VENTURE: GAZ.UN) is pleased to announce the closing of a private placement on May 18, 2017 (the ” Closing Date ” (The ” Units “) for a total amount of $ 4,999,999.20 (the ” Offering “), issued under Regulation 45-106 respecting Prospectus Exemptions .

Fronsac issued 10,204,080 Units at a subscription price of $ 0.49 per Unit for a total amount of $ 4,999,999.20. Each Unit is composed of Fronsac (a ” Unit “) and one-half of one warrant (a ” Bon “). Each whole Warrant will entitle the holder to acquire an Additional Share at a price of $ 0.61 per Additional Unit for a period of five years following May 15, 2017. The Units are subject to a holding period of four months and one day As of the Closing Date, ending September 19, 2017, under applicable securities legislation and the policies of the TSX Venture Exchange.

Fronsac retained the services of Paradigm Capital inc. (” Paradigm “) to act as a qualified intermediary for the Offering. In accordance with the terms of the agreement between Fronsac and Paradigm and the applicable securities regulations, Paradigm will receive a cash intermediary commission in the amount of $ 100,000.00 plus applicable taxes.

The proceeds of the Offering will be used by Fronsac to make acquisitions and for the purposes of its working capital.

Fronsac insiders participated in the Offering: Mr. Michael Zakuta via Z-Corp Financial 2007 Ltd. Has subscribed to 204,082 Units, Mr. Guy Laframboise via Laframboise Holding inc. Has subscribed to 204,082 Units, Mr. Jacques Beaudry personally subscribed to 204,082 Units, Mr. Jason Parravano personally subscribed for 102,370 and Mr. Francois-Olivier Laplante personally subscribed to 204,082 Units. Percentages of issued and outstanding units held by Messrs. Zakuta, Laframboise, Beaudry, Parravano and Laplante increased to 8.3%, 6.2%, 2.6%, 0.3% and 1.7%, respectively.

The Units have not been and will not be registered under the United States Securities Act of 1933, as amended, or any other securities law in the securities of any US State, and may not be Be offered or sold in the United States on behalf of or for the benefit of any United States persons (ie US Person) within the meaning of US securities regulations in the absence of such registration or exemption ‘recording.

About Fronsac – FPI Fronsac is an open-ended trust that purchases commercial properties along highways or major highways that are used exclusively in the operation of fast food businesses, convenience stores and stations.

Forward-Looking Statements – This news release contains forward-looking statements and information within the meaning of applicable securities laws. Fronsac cautions that actual events could differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results contemplated by such forward-looking statements. These include risks related to the economic situation, risks related to the local real estate market, dependence on the financial situation of tenants, uncertainties related to real estate activities, changes in interest rates, The availability of financing in the form of debt or capital, Adoption of new standards, and other risks and factors described from time to time in the documents filed by Fronsac with the securities regulatory authorities, including the MD & A. Fronsac does not intend to update or modify any of its forward-looking statements, nor does it intend to do so, even if future events occur or for any other reason, unless required by law or any regulatory authority.

Source: Fronsac Real Estate Investment Trust