(TSX-V: NFC)
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 employees.
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 such
statements.
SOURCE Northern Financial Corporation