Naughty acquires 2.5 M Freeport Recovery pfd shares

Executive Summary

• Naughty Ventures Corp. has acquired 2.5 million non-voting preferred shares of Freeport Recovery Group Inc. for a total corporate investment of $250,000.
• The transaction represents a strategic diversification beyond traditional mineral exploration into recovery-based businesses, reflecting a disciplined capital allocation approach.
• CEO Blair Naughty matched the corporate investment with a personal $250,000 investment through his private corporation, Canal Front Investments, driven by strong operational conviction and personal alignment with the target's mission.

Key Details

• Transaction Structure: Acquisition of 2.5 million non-voting preferred shares executed pursuant to a subscription agreement.
• Pricing & Proceeds: $0.10 per share, resulting in a total corporate investment of $250,000.
• CEO Personal Investment: Blair Naughty invested an additional $250,000 through his private corporation, Canal Front Investments, to match the company's subscription.
• Target Company Profile: Freeport Recovery Group Inc. is a privately held company focused on the acquisition, development, and operation of recovery-based businesses, asset recovery, specialty services, and scalable cash-flow-generating operations.
• Management & Operations: Target management team possesses extensive experience in operations, restructuring, and value creation across multiple industries; CEO noted first-class facilities and a highly professional, committed team culture.
• Strategic Rationale & Limitations: Investment diversifies Naughty Ventures outside traditional mineral exploration; initial capital was constrained by capital allocation considerations and exchange requirements, though both the company and CEO intend to support further investment opportunities as they arise.

Notable Quotes

• "This investment reflects our continued focus on disciplined capital allocation and strategic investments outside of traditional mineral exploration."
• "Beyond the operational strengths of the business, this investment also resonates with me on a personal level. Over the course of my career and personal life, I have seen the devastating impact that addiction and mental health challenges can have on individuals, families and communities."
• "In addition to Naughty Ventures' investment, I have also made a personal investment of $250,000 in Freeport through my private corporation, Canal Front Investments, to match the company's subscription."
• "While we would have liked to invest additional capital based on our conviction in the opportunity, capital allocation considerations and exchange requirements limited the company's investment at this time."