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Lorne Park Capital Partners Inc. announces Private Placement of Non-Convertible Unsecured Debentures and Closing of First Tranche

Newsfile Corp.

Toronto, Ontario--(Newsfile Corp. - August 15, 2019) - Lorne Park Capital Partners Inc. (TSXV: LPC) ("LPCP" or the "Corporation") is pleased to announce a non-brokered private placement offering of non-convertible and unsecured debentures of the Corporation (the "Debentures") for an aggregate principal amount of up to $4,500,000 (the "Offering") and the closing of the first tranche of the Offering in the amount of $3,199,000 (the "First Tranche").

The Debentures issued as part of the First Tranche closed today (the "Closing Date") and will mature on and become payable on August 15, 2024. The Debentures bear an interest at a fixed rate of 8% per annum. The Debentures are direct, unsecured obligations of the Corporation, ranking equally with all other unsecured indebtedness of the Corporation.

The Corporation has also issued to the Debenture subscribers an aggregate of 799,750 warrants (the "Warrants"), each of which entitles a Debenture holder to purchase one common share of the Corporation at an exercise price of $0.50 per common share for a period of one year from the Closing Date.

All of the securities issued in connection with the Offering are subject to a four-month hold period under applicable Canadian securities laws expiring December 16, 2019.

The net proceeds of the Placement will be used to redeem existing non-convertible and unsecured debentures of the Corporation and for general working capital purposes. The Offering is subject to final approval by the TSX Venture Exchange.

Insiders of the Corporation purchased an aggregate of $200,000 of Debentures pursuant to the Offering, being Robert Sewell, President and Chief Executive Officer and Peter Patchet, Director (collectively the "Related Parties"). The Offering is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Corporation's market capitalization.

About Lorne Park Capital Partners Inc.

LPCP was created to bring together boutique investment management and wealth advisory firms in order to deliver robust, cost effective investment solutions to affluent investors, foundations, estates and trusts. LPCP's unique strategy creates better alignment between investment managers and wealth advisors while providing them with additional resources to accelerate their growth.

For further information contact:

Robert Sewell, Chief Executive Officer
bob.sewell@lpcp.ca
(905) 337-2227

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/47003