Franchise Holdings International, Inc. Engages Gunpowder Capital Corp.
TORONTO, ON / ACCESSWIRE / July 29, 2016 / Gunpowder Capital Corp., (CSE: GPC), (FSE: YS6N) (the “Corporation” or “Gunpowder”) announced today that it has entered into various agreements to assist Franchise Holdings International, Inc. (OTCQB: FNHI).
Franchise Holdings International, Inc., (“FHI”) has engaged Gunpowder to assist in listing FHI’s common shares onto the Canadian Securities Exchange (“CSE”) and to provide inventory financing to its wholly owned subsidiary Truxmart Inc.
FHI will pay $12,500 to Gunpowder to manage, and to assist with the listing of FHI common shares on the CSE. Upon successful completion of the CSE listing, FHI will issue 3.5 million common shares to Gunpowder. Gunpowder plans to dividend out 1 million of these shares to its common shareholders. It is anticipated that the CSE listing process will take 60 to 90 days to complete. Post CSE listing, and pending approval by the CSE, FHI will also appoint Paul Haber, the current CFO of Gunpowder Capital Corp., as Chairman of the Board of Directors of FHI.
Gunpowder has also agreed to provide inventory financing to FHI’s wholly owned subsidiary, Truxmart Inc., (“Truxmart”). Truxmart manufactures and sells a full range of after-market pickup truck tonneau covers. Gunpowder has agreed to loan up to $500,000 ($50,000 immediately, $450,000 post CSE listing subject to certain terms and conditions) to fund inventory purchases, and to support growth. The loan will bear interest at 18% (“eighteen percent”) per annum with interest payable monthly. Each advance will be due two years from the date it is issued.
Mr. Paul Haber stated: “We were pleased to have won this mandate from FHI. This engagement touches all of our core strengths and goals at Gunpowder.”
Mr. Steven Rossi CEO of FHI stated: “We are extremely happy to have entered into these agreements with Gunpowder Capital Corp., as we see the benefits of being a dual listed entity, and we feel that the CSE is an excellent streamlined platform to use in assisting us in advancing our business by accessing capital in Canada. We also strongly feel that the Management of Gunpowder Capital Corp., will make excellent business partners and we are looking forward to working with them in this endeavor.”
About Franchise Holdings International, Inc.
Truxmart, Franchise Holdings International’s first wholly owned subsidiary, was founded in 2011 to take advantage of the limited innovation provided by existing tonneau cover manufacturers. Tonneau covers have remained much the same in price and design since 2005 with one main company controlling a majority of the tonneau cover market. This dynamic market segment is in need of a new innovative manufacturer of high quality, functional, and aggressively priced tonneau covers. Truxmart has developed multiple products for all of the most prominent pickup trucks available in North America. Details of most products can be found at www.truxmartcovers.com. Truxmart sells its products through master warehouse distributors, dealers, and online retailers in Canada and the U.S. For detailed information, please go to www.truxmartcovers.com.
For further information please contact:
Mr. Frank Kordy
Interim CEO & Director
Mr. Paul Haber
Gunpowder Capital Corp. Gunpowder Capital Corp.
T: (647) 466-4037 T: (416) 363-3833
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. Neither CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Gunpowder Capital Corp.