Frequency Holdings FRQN Locks In $5 Million in Zero-Dilution Working Capital Capacity, Eligible to Expand to $10 Million
Through it’s subsidiary ReachOut, Frequency adds zero-dilution vendor financing facility through Capchase Pay designed
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Chicago, IL, Sept. 29, 2026 (GLOBE NEWSWIRE) — Frequency Holdings Inc. (OTC: FRQN), a technology-focused holding company building and acquiring assets across cybersecurity, managed intelligence, digital infrastructure and media, today announced that its wholly owned subsidiary, ReachOut Digital Intelligence, has secured $5 million in zero-dilution working capital capacity through Capchase Pay. The facility is eligible to increase to $10 million after 120 days.
Frequency Holdings FRQN – Rick Jordan CEO – Announces $5M Financing Facility
The new structure allows ReachOut to receive the value of multi-year customer agreements upfront while customers make payments over time through Capchase. For ReachOut, this fundamentally changes the cash-flow dynamics of growth. Instead of waiting three or more years to collect cash under long-term agreements, the Company can bring that cash forward on day 1 and redeploy it into sales, product development, operations, and continued expansion. The $5 million capacity gives ReachOut financial infrastructure designed to support millions of dollars in new multi-year contracts without relying on equity issuance to fund ordinary growth.
“Last week we told the market that we were putting the capital structure where we believe it belongs and getting ready to hit the gas. This is one of the mechanisms that lets us do that,” said Rick Jordan, CEO of Frequency Holdings. “This changes the financial infrastructure underneath ReachOut. Instead of waiting three or five years to collect the cash from a customer agreement, we can bring that cash forward and immediately put it back to work growing the business.”
TURNING CONTRACTED GROWTH INTO WORKING CAPITAL
ReachOut has increasingly structured its cybersecurity, IT and managed intelligence offerings as multi-year licensed protection agreements. Those agreements can include software licensing, cybersecurity platforms, equipment, implementation, ongoing management and other technology required to operate and protect the customer environment.
Historically, rapid growth under a recurring-payment model can create a cost inversion. The provider incurs a significant portion of the cost to acquire, deploy and support a new customer early in the relationship while collecting the corresponding contract value over several years.
This capital structure substantially changes that equation.
“We are creating a very different growth cycle,” Jordan said. “Sell. Fund. Deploy. Put the capital back to work. Repeat. We can give customers the normal recurring payments while front-loading the operating capital necessary to scale much faster on our side.”
FROM CAPITAL STRUCTURE TO GROWTH PLATFORM
The announcement follows Frequency’s September 22 reduction of its authorized common shares from 5.4 billion to 250 million and authorized preferred shares from 1.1 billion to 250 million.
At the time, Frequency said the restructuring was intended to create a capital structure appropriate for the Company’s next stage of revenue growth, strategic acquisitions and managed intelligence commercialization.
The new capital relationship represents an early example of that strategy moving from structure into operating capability.
“This is exactly why cleaning up the capital structure mattered,” Jordan said. “Growth requires capital, but capital does not always need to come from issuing shares. We want multiple ways to finance growth, and this gives ReachOut a powerful one tied directly to the business we are already selling.”
The initial $5 million capacity is eligible to increase to $10 million after 120 days, providing additional room as ReachOut expands its customer base and increases the volume of multi-year agreements.
Frequency expects the financing capability to support ReachOut’s broader expansion across cybersecurity-first IT, licensed protection and managed intelligence as the Company continues building repeatable offerings designed for small and mid-sized businesses.
About Frequency Holdings Inc.
Frequency Holdings Inc. (OTC: FRQN) is a technology-focused holding company building and acquiring assets across cybersecurity, managed intelligence, digital infrastructure and media.
Through its wholly owned subsidiary ReachOut Digital Intelligence, the Company provides cybersecurity-first IT and AI solutions to small and mid-sized businesses. Frequency is developing managed intelligence offerings designed to automate business processes with AI while maintaining strong cybersecurity, compliance and governance controls.
The Company’s broader strategy combines recurring operating revenue, strategic acquisitions, AI commercialization and media distribution to build a portfolio of scalable technology assets.
Forward-Looking Statements
This press release contains forward-looking statements concerning Frequency Holdings Inc.’s growth strategy, future customer agreements, use and expansion of financing capacity, working capital, revenue growth, managed intelligence commercialization and other future business activities. Forward-looking statements are based on management’s current expectations and assumptions and involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied.
The Company cannot guarantee the amount or timing of future customer contracts, utilization or expansion of financing capacity, revenue growth, acquisitions, commercialization milestones or other strategic initiatives discussed herein. Frequency Holdings Inc. undertakes no obligation to publicly update or revise forward-looking statements except as required by applicable law.
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