FAC complete Aquisition of majority Interest in Impact Radio Accessories

Founders Advantage Capital Corp. announced that it has completed its previously announced acquisition of a 52% majority interest in Cape Communications International Inc., which operates as IMPACT Radio Accessories a for a total cash purchase price of $12.0 million, subject to post-closing adjustments. The Transaction was completed between the Corporation, Keith Kostek, IMPACT’s President and founder, and Mr. Kostek’s related entities.

IMPACT designs, manufactures, distributes and retails two-way radio accessories in the land mobile radio industry under the tradename IMPACT Radio Accessories and indirectly through its wholly-owned subsidiary, Threat4 Ltd. IMPACT sells through over 1,000 dealers throughout North America, with its products being used in the field by some of the most recognized names in public safety, military, security, retail, and hospitality.

Keith Kostek, President and founder of Impact, commented: “As a founder and entrepreneur, the FA Capital model was a perfect fit for me as it allowed me to add a sophisticated partner, enjoy a partial liquidity event and receive a disproportionate share of IMPACT’s future growth. The IMPACT team is proud to have the Corporation as our majority shareholder and we look forward to building value for FA Capital’s shareholders.”

Stephen Reid, Chief Executive Officer of the Corporation, commented: “IMPACT is an excellent addition to our portfolio as it has a talented management team, a history of impressive revenue growth and strong free cash flow. IMPACT has earned its extensive customer list through quality products and industry leading service. We believe that IMPACT is well positioned to take advantage of the current geopolitical environment and the increased focus on public safety, military and security. It is my pleasure to welcome Keith and his team to the FA Capital family.”