Frequency Holdings Activates New $5 Million Zero-Dilution Growth Facility With New $153,000 ReachOut Customer Agreement
The customer transaction arrives with the new $5M facility launch, and additional customer agreements already in the pipeline.
Chicago, IL, Sept. 30, 2026 (GLOBE NEWSWIRE) — Frequency Holdings Inc. (OTC: FRQN), a technology-focused holding company building and acquiring assets across cybersecurity, managed intelligence, digital infrastructure, strategic technology and media, today announced that its wholly owned subsidiary, ReachOut Digital Intelligence, has entered a customer transaction through the new Capchase Pay $5M financing facility announced yesterday. The customer agreement represents nearly $153,000 in contract value.
Customer agreement activates the new $5M financing facility for Frequency Holdings (FRQN)
Frequency announced on September 29 that ReachOut had secured $5 million in funding capacity through Capchase Pay, with eligibility to increase the facility to $10 million after 120 days.
The customer order immediately shows the purpose behind the new $5 million zero-dilution financing facility. Through Capchase Pay, ReachOut can receive payment upfront on multi-year customer agreements while customers pay Capchase over time, allowing contract cash to be brought forward and put back to work in sales, products, and continued growth.
Additional agreements are already progressing through ReachOut’s pipeline.
“We built it. Now we’re already using it,” said Rick Jordan, Founder and CEO of Frequency Holdings. “Yesterday we announced the financial infrastructure. Today we have an agreement moving through it with more to come. That is exactly what this was designed to do. Bring cash forward, put it back to work, and create a growth cycle that can keep repeating.”
From Capacity to Funding with More in the Pipeline
For ReachOut, the structure is particularly relevant to its growing model of multi-year Licensed Protection agreements, which can combine cybersecurity, software, infrastructure, equipment and ongoing technology management.
Instead of collecting the economics of those agreements incrementally over three or five years, ReachOut can accelerate the cash with participating contracts and redeploy that capital into additional growth.
“This is where the model starts to become powerful,” Jordan continued. “Sell. Fund. Deploy. Reinvest. Repeat. The first transaction matters because it takes what we announced yesterday from financial capacity to operating execution.”
Not Corporate Debt to Frequency
The Capchase structure does not represent debt issued by Frequency Holdings. Capchase provides financing to the customer purchasing products and services, while ReachOut receives payment upfront on the entire agreement. The structure gives Frequency a path to accelerate cash without issuing equity or borrowing debt at the FRQN parent-company level.
The distinction is important to Frequency’s broader capital strategy.
Earlier this month, the Company reduced its authorized common shares from 5.4 billion to 250 million and its authorized preferred shares from 1.1 billion to 250 million. Frequency has stated that its objective is to build multiple sources of growth capital rather than assuming every stage of expansion must be funded through additional equity issuance.
The nearly $153,000 transaction was entered through the newly established Capchase relationship. Frequency quickly expects additional ReachOut customer agreements to utilize the structure as the Company continues expanding its cybersecurity, Licensed Protection and managed intelligence offerings.
“We have spent a lot of time talking about structure,” Jordan said. “Now I want the conversation to increasingly be about what we do with it.”
About Frequency Holdings Inc.
Frequency Holdings is a technology-focused holding company building and acquiring assets across cybersecurity, managed intelligence, digital infrastructure, strategic technology, and media. The Company uses recurring customer relationships, proprietary products, acquisitions, and capital infrastructure to create businesses that can scale independently and become more valuable together.
Through ReachOut Digital Intelligence, Frequency provides cybersecurity-first technology, Licensed Protection, managed IT and developing managed intelligence solutions to small and midsize businesses.
Forward-Looking Statements
This press release contains forward-looking statements regarding future customer agreements, use and expansion of the Capchase facility, working capital, growth, managed intelligence commercialization and other future business activities. Forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that may cause actual results to differ materially.
The Company cannot guarantee the amount or timing of future customer agreements, financing transactions, utilization or expansion of financing capacity, revenue growth 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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