Forte Group Announces Initiatives to Strengthen Financial Position

Rhea-AI Summary

Forte Group (OTC:FGHFF) has announced multiple financial initiatives to strengthen its balance sheet. The company plans a non-brokered private placement to raise up to $435,000 through issuing 2.9 million units at $0.15 per unit. Each unit includes one common share and 0.53 warrants.

Additionally, Forte will conduct a debt settlement of $1.44 million through issuing approximately 9.62 million units at $0.15 per unit. The company has also secured $342,500 through unsecured promissory notes with interest rates ranging from 8-12%, and its subsidiary Naturo Group obtained an additional $81,000 in loans.

Both the private placement and debt settlement are expected to close around July 22, 2025, subject to regulatory approvals.

Positive

• Debt reduction of $1.44 million through equity conversion
• Additional working capital of $435,000 through private placement
• Successfully secured $423,500 in total loan financing
• Flexible loan terms allowing early repayment without penalties

Negative

• Significant dilution through issuance of 12.5 million new units
• High-cost debt with interest rates up to 12% annually
• Substantial related party transactions indicating potential funding challenges
• Share price pressure with warrants priced at $0.15

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VANCOUVER, BC / ACCESS Newswire / July 14, 2025 / Forte Group Holdings Inc. (CSE:FGH)(OTC:FGHFF)(FSE:7BC0, WKN:A40L1Z)("Forte Group" or the "Company"), a diversified lifestyle and wellness consumer packaged goods company, announces a series of initiatives aimed at strengthening its financial position, including a non-brokered private placement financing (the "Private Placement"), consisting of the issuance of an aggregate of 2,900,000 units of the Company (each, a "Unit"), at a price of $0.15 per Unit for aggregate gross proceeds of up to $435,000 and a Debt Settlement (as defined below).

Private Placement
Each Unit will consist of one common share in the capital of the Company (each, a "Share") and 0.53 transferable common share purchase warrants of the Company (each whole warrant, a "Warrant"), with each Warrant entitling the holder to acquire one additional Share (each, a "Warrant Share") at a price of $0.15 per Warrant Share for a period of two years from the date of closing.

Closing of the Private Placement is anticipated to occur on or about July 22, 2025, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, and subject to addressing any comments received from the Canadian Securities Exchange during a five business day period from the date of this news release in accordance with their policies.

The net proceeds of the Private Placement are intended to be used for general working capital and outstanding payables. The securities issued under the Private Placement will be subject to a statutory hold period expiring four months and one day from the date of issuance.

Proposed Debt Settlement
In line with its continued efforts to strengthen its balance sheet, the Company intends to settle debt totaling $1,443,717.85 owed to certain creditors of the Company in consideration for the issuance of an aggregate 9,624,786 units of the Company (each, a "Debt Settlement Unit") at a deemed price of $0.15 per Debt Settlement Unit (the "Debt Settlement").

Each Debt Settlement Unit will consist of one Share (each, a "Debt Share") and 0.53 transferable common share purchase warrants (each whole warrant, a "Debt Settlement Warrant"), with each Debt Settlement Warrant exercisable to purchase one additional common share of the Company (each, a "Debt Settlement Warrant Share") at an exercise price of $0.15 per Debt Settlement Warrant Share for a period of two years from the date of closing of the Debt Settlement. The securities issued under the Debt Settlement will be subject to a statutory hold period expiring four months and one day from the date of issuance.

Closing of the Debt Settlement is anticipated to occur on or about July 22, 2025, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, and subject to addressing any comments received from the Canadian Securities Exchange during a five business day period from the date of this news release in accordance with their policies.

Insiders may participate in the Private Placement and the Debt Settlement and such participation may constitute a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI61-101"). The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under subsections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Private Placement and Debt Settlement by insiders will not exceed 25% of the fair market value of the Company's market capitalization. No finder's fees are expected to be payable in connection with the Private Placement.

Unsecured Promissory Notes
The Company also announces that it received aggregate proceeds of $342,500 through the issuance of unsecured promissory notes to certain lenders, including $57,500 advanced by related parties. The related party loans bear interest at a rate of 8% per annum. The remaining loans include $225,000 bearing interest at 8% per annum, and $50,000 bearing interest at 12% per annum. All loans have a term of 12 months from the date of execution and may be repaid at any time, in whole or in part, without penalty or premium.

The Company further announces that its wholly-owned subsidiary, Naturo Group Enterprises Inc., received aggregate gross proceeds of $81,000, including $31,000 advanced by related parties. These loans bear interest at a rate of 8% per annum, have a term of 12 months from the date of execution, and may be repaid at any time, in whole or in part, without penalty or premium.

The proceeds of the unsecured promissory note loans are intended to be used for general working capital and outstanding payables.

About Forte Group Holdings Inc.
Forte Group Holdings Inc. (CSE:FGH)(OTC:FGHFF)(FSE:7BC0, WKN:A40L1Z) a diversified lifestyle and wellness consumer packaged goods company. Forte Group develops and manufactures a range of alkaline and mineral-enriched beverages and nutraceutical supplements for both its TRACE brand and private-label clients. Based in British Columbia, Canada, Forte Group owns a pristine natural alkaline spring water aquifer and operates a 40,000-square-foot, Health Canada and HACCP-certified manufacturing facility near Osoyoos, British Columbia. The Company's distribution network includes traditional retail and e-commerce channels, delivering wellness-focused products directly to consumers through its innovative offerings.

On behalf of the Board of Directors:
Marcello Leone, Chief Executive Officer and Director
info@fortegroup.co
604-569-1414

Disclaimer for Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, but are not limited to, statements regarding the completion and timing of the Private Placement and the Debt Settlement, the receipt of regulatory approvals, the intended use of proceeds, including with respect to the unsecured promissory note loans, the participation of insiders, and the potential financial impact of these transactions on Forte Group. Forward-looking statements reflect management's current expectations, estimates, projections, and assumptions as of the date hereof and are subject to a number of known and unknown risks, uncertainties, and other factors that could cause actual outcomes to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: the ability to complete the Private Placement and Debt Settlement on the anticipated timeline or at all; the receipt of necessary regulatory approvals; the availability of funds; risks associated with market conditions; insider participation exceeding anticipated thresholds; and general risks relating to the Company's business, including those detailed from time to time in its public disclosure documents available on SEDAR+ at www.sedarplus.ca. Readers are cautioned not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

SOURCE: Forte Group Holdings

View the original press release on ACCESS Newswire

FAQ

What is the size of Forte Group's (FGHFF) private placement announced for July 2025?

Forte Group announced a private placement of 2.9 million units at $0.15 per unit, aiming to raise aggregate gross proceeds of up to $435,000.

How much debt is Forte Group (FGHFF) settling through equity in July 2025?

Forte Group is settling $1,443,717.85 in debt through the issuance of 9,624,786 units at a deemed price of $0.15 per unit.

What are the terms of Forte Group's (FGHFF) unsecured promissory notes announced in July 2025?

The unsecured promissory notes total $342,500 with interest rates ranging from 8-12% per annum and a 12-month term, allowing early repayment without penalties.

When will Forte Group's (FGHFF) private placement and debt settlement close?

Both the private placement and debt settlement are anticipated to close on or about July 22, 2025, subject to regulatory approvals.

What is the structure of Forte Group's (FGHFF) private placement units?

Each unit consists of one common share and 0.53 transferable common share purchase warrants, with each whole warrant exercisable at $0.15 for two years.