TORONTO, Sept. 21, 2011 /CNW/ - Frontline Technologies Inc. ("Frontline"
or the "Company") (TSX: FLC) announced today that it has entered into
an agreement amending the terms of its previously announced agreement
entered into on February 23, 2011 to refer most of the clients of its
United States execution businesses operated by its wholly-owned
subsidiaries, Electronic Brokerage Systems, LLC and Robert C. Sheehan &
Associates, LLC, to wholly-owned subsidiaries of ConvergEx Group, LLC
Under the amended terms, ConvergEx will pay to Frontline US$1.8M in full
satisfaction of all its obligations under the Agreement. The Company
will be released from all of its obligations under the agreement except
for certain restrictive covenants including those relating to the
referred clients of Robert C. Sheehan & Associates, LLC and certain
representations made with respect to the referred clients of Robert C.
Sheehan & Associates, LLC.
As a result of the amendment to the terms of the referral agreement, the
Board of Directors and management of the Company are assessing the
Company's options, including with respect to Electronic Brokerage
Systems, LLC and its business, and the related effect on its ability to
pay a special distribution to the holders of its common shares and on
the holders of its common shares and Class A Restricted Shares.
About Frontline Technologies Inc.
Frontline Technologies is an established, innovative technology service
company serving the professional, financial and investment banking
communities across Canada. Frontline Technologies provides IT
infrastructure support, managed services, technical support, hosted
environment including email and file servers, remote backup, VoIP
services, ISP, disaster recovery and much more. In addition to
infrastructure support, Frontline also offers the "Trade to Clear"
application - a comprehensive platform for managing different aspects
of trading such as OMS, Position Management, Post-trade Matching, and
Electronic Ticketing. Customers are able to access an array of services
through one reliable provider - Frontline Technologies Inc.
Forward looking statements:
Certain statements in this press release may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements of the Company, its subsidiaries or the
industries in which they operate to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. When used in this press release, the
words "estimate", "believe", "anticipate", "intend", "expect", "plan",
"may", "should", "will", the negative thereof or other variations
thereon or comparable terminology are intended to identify
forward-looking statements. Such statements reflect the current
expectations of the management of the Company with respect to future
events based on currently available information and are subject to
risks and uncertainties that could cause actual results, performance or
achievements to differ materially from those expressed or implied by
those forward-looking statements. These risks and uncertainties
include, but are not limited to, economic, competitive, governmental
and technological factors affecting the Company's operations, markets,
products, prices and other factors as are detailed from time to time,
including, without limitation, under the heading "Risk Factors", in
documents filed by the Company with the Canadian securities regulatory
authorities which are available at www.sedar.com and to which readers of this press release are referred for additional
information concerning the Company, its prospects and the risks and
uncertainties relating to the Company and its prospects. New risk
factors may arise from time to time and it is not possible for
management to predict all of those risk factors or the extent to which
any factor or combination of factors may cause actual results,
performance and achievements of the Company to be materially different
from those contained in forward-looking statements. Although the
forward-looking statements contained in this press release are based
upon what management believes to be reasonable assumptions, the Company
cannot assure investors that actual results will be consistent with
these forward-looking statements. Given these risks and uncertainties,
investors should not place undue reliance on forward-looking statements
as a prediction of actual results.
The forward-looking information contained in this press release is
current only as of the date of the press release. The Company does not
undertake or assume any obligation to release publicly any revisions to
these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events, except as required by law.
SOURCE Frontline Technologies Inc.
For further information:
Chairman and Chief Executive Officer
Frontline Technologies Inc.