Dec 23, 2022
VANCOUVER, British Columbia, December 23, 2022 – FRX INNOVATIONS INC. (TSXV: FRXI) (OTCQB: FRXIF) (the "Company" or "FRX"), a leader in eco-friendly flame-retardant solutions (NofiaÒ), is pleased to announce that it has completed the second closing of a non-brokered private placement offering (the "Offering") of 3,342,667 units of the Company ("Units") at a price per Unit of $0.30 for aggregate gross proceeds of $1,002,800. Together with the first closing, FRX has raised a total of CAD $1,624,803.
Each Unit consists of one common share of the Company (a "Unit Share") and one common share purchase warrant of the Company (each whole such warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one additional common share of the Company at a price of $0.40 at any time on or before the 36-month anniversary of the date of closing.
Commissions of $77,464 and 258,213 warrants were paid in association to the Offering. The net proceeds from the Offering are expected to be used for general and corporate working capital purposes. All securities issued pursuant to the Offering will be subject to a statutory hold period ending on April 23, 2023.
FRX CEO, Marc Lebel stated “consistent with legislation passed in both the EU and the US earlier this year banning toxic flame retardants from use in electronic display housings and home appliances such as televisions, laptops, FRX recently announced a USD $10 Million memorandum of understanding with Polymer Compounders to support its growing applications of Notoxicom product line, targeted at these applications. Produced at its state-of-the-art plant in Antwerp, Nofia® has been certified by Green Screen as meeting the coveted Benchmark 3 rating, certified by ChemForward under their SAFER program and certified by TCO all three of which are becoming industry standard accreditations for electronic and electro-medical device applications.”
Lebel also said, “FRX’s Nofia® is already in use in lithium-ion battery casings, medical devices, textiles, automotive foam, structural foam, transparent films, and consumer products. Recently, Nofia Flame Retardants have been adopted in the foam found in the passenger compartment for a second European luxury-brand car line. Together with previously announced adoptions in this market segment, FRX is now in three luxury vehicle lines at two different European car companies. In the textile market, Reliance Industries, the world’s largest polyester fiber producer¹ has recently announced new product wins for their Recron FS product line, also powered by Nofia®, in Indian Rail, Charles de Gaulle airport and Spanish furniture manufacturer Happers. Recently, PolyVisions announced the introduction of DuraPET FR, which is a line of polyester based products designed for the extrusion and molding markets. Due to this recent environmental legislation, and the announcement from 3M that they will exit the PFAS “Forever Chemical” business, new near-term application projects with some of the world’s largest chemical companies are in progress. If, as and when the demand from these development projects begin to bear fruit, we may need to expand our current production capacity beyond its current 3,500 tons per year. The funds raised under this current offering will allow the company to better position itself for considerable growth. We thank all those who have supported FRX, for their confidence and faith in our future”.
Pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, the Company is exempt from obtaining a formal valuation and minority approval of the Company’s shareholders as the fair market value of each of the Insiders participation, individually, and in aggregate, in the Offering is below 25% of the Company’s market capitalization as determined in accordance with MI 61-101.
A material change report including details with respect to the related party transaction could not be filed less than 21 days prior to the closing of the Offering as the Company did not receive prior confirmation of such participation and the Company deemed it reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.
1 Independent Commodity Intelligence Services report dated September 12, 2022.
About FRX Innovations
FRX Innovations is a global manufacturing company, producing a family of environmentally sustainable flame-retardant products that serve several large markets spanning electronics, automotive, electric vehicles (EV) and medical devices. FRX is led by a team of highly experienced business and technical professionals and is positioned to be a leader in the rapidly changing flame-retardant plastics and additives market in response to advancing regulations prohibiting toxic chemicals.
Nofia® is a registered trademark of FRX. Nofia® products are manufactured at its manufacturing facility on the Port of Antwerp in Belgium, one of the world's largest chemical producing clusters. Nofia Polyphosphonates are produced using sustainable green chemistry principles such as a solvent-free production process, no waste by-products, and near 100% atom efficiency. FRX's portfolio includes an extensive patent estate. FRX, at the forefront of the ESG movement to a greener future, has been the recipient of numerous awards, including the EPA's Environmental Merit Award, the Belgium Business Award for the Environment, and the Flanders Investment of the Year Award. FRX has also been recognized six times on the Global Cleantech 100 list.
Cautionary Note Regarding Forward-Looking Statements and Reader Advisory
Certain statements contained in this news release, including, but not limited to, statements with respect to the Offering, the completion of the Offering, the size, amount and type of securities issued under the Offering, participation in the Offering by related parties and the amount of such participation, among other things, and statements which may contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions, and statements related to matters which are not historical facts, may constitute forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management’s expectations regarding the Company’s future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.
These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward- looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release and the documents incorporated by reference herein are reasonable based on information available to it, but no assurance can be given that these expectations will prove to be correct.
FRX Innovations Inc.
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