TORONTO, Jan. 22, 2013 /CNW/ - Northern Financial Corporation (TSXV:
NFC) ("Northern" or the "Company") today provided an update on its
proposed $500,000 financing of common shares. The financing has not
been successful to date and insiders are limited to participating to a
maximum of 25% of the amount that is raised.
As previously announced, under a Consent Order dated December 14, 2012,
Northern's wholly owned subsidiary Northern Securities Inc. ("NSI") no
longer offers a sales function for retail and institutional accounts
because NSI was unable to obtain a new carrying broker following the
decision by its former carrying broker, Penson Financial Services
Canada to discontinue its business on December 31, 2012. With the
resulting transfer out of its retail business, NSI has currently 13
While the Consent Order permits NSI to carry on a "corporate finance"
business, the ability of carrying on this business is seriously and
substantially limited due to the sales prohibition.
Therefore NSI has applied to IIROC to permit NSI to sell securities in
prospectus exempt financings including offerings to accredited
investors. Historically, corporate finance and advisory revenue has
been between 20% and 40% of total revenue at NSI. At the same time NSI
is not in compliance with the risk adjusted capital requirement of
IIROC. This non-compliance has resulted in IIROC financial staff
referring the matter to enforcement staff at IIROC.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements with respect
to the Company, its operations, strategy, financial performance and
condition. These statements generally can be identified by use of
forward looking words such as "may", "will", "expect", "estimate",
"anticipate", intends", "believe" or "continue" or the negative thereof
or similar variations. The actual results and performance of the
Company discussed herein could differ materially from those expressed
or implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Important factors that could cause actual results to
differ materially from expectations include, among other things,
general economic and market factors, competition, changes in government
regulations and the factors described under "Risk Factors" in the
Management's Discussion and Analysis and Filing Statement of the
Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements
attributable to the Company and persons acting on their behalf. Unless
otherwise stated, all forward-looking statements speak only as of the
date of this press release and the Company has no obligation to update
SOURCE: Northern Financial Corporation
For further information:
Director, Business Development
Northern Securities Inc.
Fax: (416) 644-0270