TORONTO, Sept. 21, 2011 /PRNewswire/ - 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 ("ConvergEx").
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.