Mr. Stephane Ouellette reports

FRNT FINANCIAL INC. CLOSES $2M PRIVATE PLACEMENT

FRNT Financial Inc. has closed its previously announced non-brokered private placement offering for aggregate gross proceeds of $2-million on Aug. 1, 2025.

Under the terms of the offering, the company issued five million common shares in the capital of the company, at a price of 40 cents per common share, for aggregate gross proceeds of approximately $2-million.

The company intends to use the net proceeds from the listed issuer financing exemption offering to invest in BTC treasury, for additional marketing initiatives, and for working capital and general corporate purposes, as more specifically described in the offering document.

"We look forward to adding spot BTC to our balance sheet to further demonstrate to our growing client base of crypto treasury companies the many ways to optimize their digital asset holdings and earn yield over time," said Stephane Ouellette, chief executive officer of the company. "We're further excited to market FRNT as the target client base for our institutional services are growing at an unprecedented rate."

The company paid certain cash finders' fees and issued 81,410 finders' warrants to eligible finders in respect of subscriptions for common shares referred by such finders. Each finder's warrant entitles the holder thereof to acquire one common share at a price of 40 cents at any time on or before Aug. 1, 2028.

The common shares were offered pursuant to the listed issuer financing exemption as outlined in Part 5A of National Instrument 45-106 (Prospectus Exemptions). An offering document related to the portion of the offering conducted under the listed issuer financing exemption has been filed on the company's profile on SEDAR+.

The common shares sold under the listed issuer financing exemption are not subject to a hold period in accordance with Canadian securities laws and are immediately freely tradable, while the finders' warrants and underlying securities are subject to a four-month hold period.

David Washburn, president of the company, Alex McAulay, chief financial officer of the company, and Geoff Browne, director of the company, each participated in the offering, purchasing 312,500 common shares, 37,500 common shares and 125,000 common shares, respectively, and the offering accordingly constitutes a related-party transaction pursuant to Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The offering is exempt from: (i) the formal valuation requirement of MI 61-101 pursuant to Section 5.5(b) of MI 61-101 as the common shares are not listed or quoted on any of the stock exchanges or markets listed in Section 5.5(b) of MI 61-101; and (ii) the minority shareholder approval requirement of MI 61-101 pursuant to Section 5.7(1)(a) of MI 61-101, as the fair market value of the common shares purchased issued does not exceed 25 per cent of the company's market capitalization. A material change report was not filed by the company at least 21 days before the closing of the offering, as the participation of such insiders was not determined until shortly prior to closing and the company wished to close expeditiously to confirm funds for the offering. The offering was approved by all of the independent directors of the company.

About FRNT Financial Inc.

FRNT is a digital asset investment bank offering capital market and advisory services to institutional investors participating in or entering the space. The company aims to bridge the worlds of traditional and Web-based finances with a technology forward and compliant operation. Business lines include deliverable trading services, structured derivative products, merchant banking, advisory, consulting and lending origination, and principal investments. Headquartered in Toronto, FRNT was co-founded in 2018 by chief executive officer Stephane Ouellette.

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