Frankly Closes Previously Announced Financing with Raycom Media

SAN FRANCISCO, Sept. 1, 2016 /CNW/ -- Frankly Inc. (TSX VENTURE: TLK) (Frankly), a leading content, engagement and monetization platform for brands and media companies, has confirmed the closing of its financing with Raycom Media, Inc. (Raycom), a leading U.S. broadcaster, as previously announced on August 18, 2016.

Frankly received a non-revolving term line of credit from Raycom in the principal amount of US$14.5 million and, subject to approval of Raycom, an additional available US$1.5 million non-revolving line of credit. In addition, Raycom has converted US$1.0 million of its existing US$4.0 million promissory note from Frankly into 2,553,400 Frankly common shares and Frankly issued 14,809,720 warrants to Raycom entitling the holder of each warrant to acquire one common share of Frankly upon exercise of each warrant at a price per common share equal to CDN$0.50. The common shares and warrants issued to Raycom are subject to a four-month statutory hold period expiring on January 1, 2017. As a result of the transactions with Raycom described above (the "Transactions"), Raycom currently holds 9,304,532 voting shares of Frankly, which collectively represents approximately 27% of the issued and outstanding voting shares of Frankly on a non-diluted basis.

Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Transactions were "related party transactions". The Transactions were exempt from the valuation and minority shareholder approval provisions of MI 61-101 pursuant to Sections 5.5(e) and 5.7(1)(c) thereof as the Transactions were supported by an arms-length control person (being SKP America, LLC). The Transactions closed in less than 21 days due to Frankly's immediate need to address the repayment of US$15.0 million of promissory notes issued by Frankly, which shorter period is both reasonable and necessary in the circumstances.

About Frankly
Frankly (TSX VENTURE: TLK) builds an integrated software platform for brands and media companies to create, distribute, analyze and monetize their content across all of their digital properties on web, mobile and TV. Its customers include NBC, ABC, CBS and FOX affiliates, as well as top fashion brands, professional sports franchises and global organizations. Collectively, Frankly reaches nearly 80 million monthly users in the United States. The company is headquartered in San Francisco with major offices in New York. To learn more, visit www.franklyinc.com.

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

Notice Regarding Forward-Looking Statements
This release includes forward-looking statements regarding Frankly and its businesses. Forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the parties. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Frankly undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE Frankly Inc.

For further information: For further information: Frankly Media Press Contact: press@franklyinc.com; Frankly Investor Relations Contact: Matt Glover or Najim Mostamand, Liolios Group, Inc., 949-574-3860, TLK@liolios.com, www.franklyinc.com, http://www.franklyinc.com


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