Fronsac Real Estate Investment Trust announce that it has entered into acquisition agreements to purchase three commercial properties in Québec and Ontario (collectively, the "Acquisition Properties"), and its intention to undertake a public offering (the "Offering") of units of Fronsac (the "Units") at a price of $0.62 per Unit for minimum gross proceeds of approximately $15.0 million (the "Minimum Offering") and maximum gross proceeds of approximately $18.0 million (the "Maximum Offering"). Use of Proceeds: The REIT intends to use the net proceeds of the Offering as follows: (i) approximately $3.6 million to partially fund the acquisition of a property located in Kenora, Ontario and leased to Walmart. The total consideration to be paid for the property will be approximately $12.0 million (excluding any transaction costs) and will be paid in cash; (ii) approximately $1.3 million to partially fund the acquisition of a property located in Farnham, Québec and leased to a gas station and restaurant operated by Petro-Canada, a convenience store operator and Tim Hortons. The total consideration to be paid for the property will be approximately $4.0 million (excluding any transaction costs) and will be paid in cash; (iii) approximately $1.0 million to partially fund the acquisition of a 75%-interest in property located in Saint-Étienne-des-Grès, Québec and leased to a gas station and restaurant operated by Parkland, a convenience store operator and Tim Hortons. The total consideration to be paid for the property will be $3.0 million (excluding any transaction costs) and will be paid in cash; (iv) approximately $7.5 million assuming the Minimum Offering is completed and approximately $10.3 million assuming the Maximum Offering is completed to repay a portion of the outstanding indebtedness under certain of Fronsac's credit facilities, which may be subsequently redrawn in connection with the acquisition by the REIT of the Acquisition Properties; (v) approximately $0.3 million for expenses incurred by the REIT in connection with the Offering; and (vi) approximately $0.5 million for real estate transaction costs expected to be incurred in connection with the acquisition of the Acquisition Properties, primarily comprised of land transfer and other taxes, insurance, bank underwriting fees, legal fees and third-party consultant fees; and the combined net operating income in respect of the Acquisition Properties is approximately $1.5 million, representing a 7.9% weighted average capitalization rate based on the aggregate purchase price of approximately $19.0 million (excluding transaction costs) in respect of the Acquisition Properties.