FNHI Submits Non-Offering Prospectus to Ontario Securities Commission -- and General Update
Press Release | 06/25/2019
Share buyback filings underway ; CEO Rossi to retire common shares in exchange for preferred.
Toronto, Ontario, June 25, 2019 (GLOBE NEWSWIRE) -- Franchise Holdings International Inc., (OTCQB: FNHI) (or the “Company”) Worksport Ltd.’s parent company, has submitted its most up-to-date non-offering prospectus to the Ontario Securities Commission (OSC). If receipted by the OSC, FNHI may apply to trade on the CSE. FNHI says it has answered all the OSC’s most recent set of comments in its submission and expects reactions from the regulator within 30 days.
“The proposed CSE listing is a large undertaking, and a long awaited but massive milestone for the company, elevating it to the upper echelon of reporting issuer status,” said Worksport and FNHI CEO Steven Rossi. “A prestigious CSE listing exposes Worksport to a huge pool of sophisticated Canadians seeking to invest in growth companies. It also provides much needed transparency and growth capital, perfectly complementing our existing OTC:QB voluntary filer status. When the bell rings and our shares are trading on the CSE, it will be the greatest day for me personally and for Worksport and FNHI.”
FNHI obtaining a CSE listing triggers Gunpowder Capital’s (CSE: GPC) listing-related $240,000 CDN investment Escrow to be released for the company’s use. FNHI Management intends to deploy those funds for settlement of its highest interest debt, virtually eliminating all outstanding interest-bearing secured promissory notes.
“By eliminating this debt and the interest relating to the promissory notes, a substantial amount of free cash is added to our bottom line,” Rossi said.
For the time being, FNHI share structure will remain the same but Rossi will continue with previously announced plans to retire his common shares in exchange for a preferred-share control block of FNHI, within 2019. In addition, FNHI is presently organizing all necessary documentation under SEC Rule 10b5-1 to initiate a buy-back program of FNHI stock. The company has already earmarked some of its recent profits to actively purchase shares, from time to time, over the coming 24 months, or more. The company will not and cannot engage in the selling of its stock.
Management believes that its market valuation is drastically discounted to what it thinks its accurate valuation should be, considering its assets in cash, inventory, and intellectual property, paired with its current burgeoning sales and revenue growth.
“We have started off the year with a Big Bang,” Rossi said, “And I couldn’t be more excited. First there were record sales and growth for Q1, then we were awarded our third U.S. patent, enabling the monetizing of our intellectual property—and now the advent of CSE listing and all that it positively represents. I have always said great things are ahead for Worksport, and these developments prove the overwhelming validity of that optimism. What a great time for this company.”
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