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TORONTO, May 30, 2024 (GLOBE NEWSWIRE) -- FRNT Financial Inc. (TSXV: FRNT) (OTCQB:FRFLF) (FSE:XZ3) (the "Company" or "FRNT") is pleased to provide a business update as macro and cryptocurrency-market conditions improve. The Company is seeing a significant uptick in business pipeline beyond what has been seen historically, though experiencing volatility in the timing of revenue realization. While such volatility is to be expected as the industry emerges from aggressive bear-market conditions, the Company believes the revenue-generation potential of the business has re-rated and that recurring, more predictable quarterly figures are on the horizon.
Advisory & Consulting
FRNT Financial has entered into a number of engagements, advising crypto-related corporate clients with unique financing needs and structures. These include a mix of M&A mandates, minority financings, and structured financings. The Company is engaged in over $500 million in notional mandates. While execution risk remains, several mandates are in advanced stages and are expected to conclude within the next 9-12 months.
Lending Origination
In the recent quarter, FRNT saw an influx of indications from prospective borrowers of fiat currencies, collateralized by digital assets. Client indications currently amount to upwards of USD equivalent $100 million in notional, with FRNT typically earning origination fees and spreads on such transactions, if executed.
Trading Services
Claims Trading: FRNT remains engaged and advising FTX claims holders following the 2022 bankruptcy. The Company was one of the most active firms in consulting around such transactions in 2023. With a minority of claims having traded to date, FRNT believes the opportunity remains with the bankruptcy estate now adding further clarity to the liquidation timing.
Derivatives: While regulated OTC-derivatives trading was particularly impacted by the bear-market conditions of the last two-years, the Company has seen renewed interest in such structures. FRNT intends to launch an augmented version of its historical 'SEM-Trade' derivatives-platform as this business-line returns in the coming quarters.
Spot Services: After a year where many core spot trading clients restructured or dissolved, FRNT is seeing an influx of onboarding of new clients, achieving levels not seen since 2021.
Quote from Management
"The business of FRNT is emerging from a unique, disruptive period where the institutional adoption of digital assets was put on pause due to high-profile disasters in the industry and a depressed macro environment," said Stéphane Ouellette, CEO of FRNT Financial. "As clear changes in sentiment are emerging in key regions and regulatory clarity is improving, FRNT is experiencing an incredible increase in demand for its services. FRNT is one of the few institution-focused businesses in the industry that has been able to stabilize operations after an incredibly difficult period. We further expect, in the coming quarters, as the industry normalizes, to see less volatile and more predictable quarterly revenues."
About FRNT
FRNT is an institutional capital markets and advisory platform focused on digital assets. FRNT, through a technology-forward and compliant operation, aims to bridge the worlds of traditional and web-based finance. Partnering with both financial institutions and crypto native firms, FRNT operates 5 synergistic business lines including deliverable trading services, institutional structured derivative products, merchant banking, advisory and consulting, and principal investments & trading. Co-founded in 2018 by CEO Stéphane Ouellette, FRNT is a global firm headquartered in Toronto, Canada.
FRNT Financial Inc.
Chief Executive Officer
Stéphane Ouellette
investors@frnt.io
833 222-3768
https://frnt.io
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FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law which may include, without limitation, statements relating to revenue generation trends and potential, the conclusion of advisory agreements, expectations regarding lending origination and other Company operations, financial and business prospects of the Company, its assets and other matters. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: the general risks associated with the speculative nature of the Company's business, current global financial conditions, uncertainty of additional capital, price volatility, no history of earnings, government regulation in the industries in which the Company operates, political and economic risk, absence of public trading market, arbitrary offering price, dilution to the Company's common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The Company does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.
