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Knightswood Financial Corp. Announces Receipt for Preliminary Short Form Prospectus and Changes to Its Board of Directors

T.XLY

VANCOUVER, BC--(Marketwired - December 21, 2016) - Knightswood Financial Corp. (TSX VENTURE: KWF) (the "Company") is pleased to announce that it has obtained a receipt from the British Columbia Securities Commission and the Ontario Securities Commission for the filing of a preliminary short form prospectus dated December 19, 2016 in the Provinces of British Columbia and Ontario.

The Company is currently undertaking a non-brokered private placement for up to $1,000,000 (the "Offering") through the issuance of 18,181,181 special warrants ("Special Warrants") priced at $0.055 per Special Warrant. Each Special Warrant will entitle the holder to receive, without payment of additional consideration or need for further action, one unit ("Unit") of the Company, with each Unit consisting of one common share ("Share") and one share purchase warrant ("Warrant"), with each Warrant entitling the holder to purchase one additional Share at $0.07 for a period of 24 months from the closing date of the Offering. The Special Warrants will convert to Units on the earlier of: (i) four months and a day after closing of the placement; and (ii) the receipt of a final prospectus qualifying the Shares and underlying Warrants.

The Company intends to use the net proceeds from the Offering to expand its existing investment business and investigate new investment opportunities in life sciences, including cannabis related businesses.

Closing of the private placement is subject to receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange.

The Company also announces that Hugh Cartwright, who had served as a member of the Board of Directors since 1996, has retired. The Board and management of the Company would like to thank Mr. Cartwright for his time and dedication to the Company. The Company is pleased to announce the addition of two new directors -- Brandon Boddy and Troy Grant.

Brandon Boddy - Mr. Boddy has over 10 years of finance and capital market experience. He formerly worked as an investment advisor at Jordan Capital Markets and Canaccord Capital Corp., specializing in developing, restructuring and financing venture capital companies. Mr. Boddy serves on the board of a number of public technology and resource issuers. Mr. Boddy attended the University of New Orleans studying Business Administration and finished his Degree at British Columbia Institute of Technology.

Troy Grant - Since 2000, Mr. Grant has held senior positions in the financial service sector including Head of Corporate Finance at a Canadian broker dealer focusing on the resource sector, and more recently Head of Institutional European Sales. Troy has also been instrumental in venture formation, financing and development of a number of resource, technology and agriculture companies operating globally. Mr. Grant is currently the CEO of Elcora Advanced Materials, a TSXV listed graphene materials company. Mr. Grant holds a BBA, Economics from Saint Francis Xavier University.

About Knightswood Financial Corp.

The Company is an investment company that seeks to provide investor returns through dividends, investment fees and capital appreciation.

ON BEHALF OF THE BOARD

"Stephen McCoach"
Chairman

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.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

For further information, please contact:

Maurice Levesque
President and Director
Knightswood Financial Corp.
3030, 650 West Georgia Street, Vancouver, BC V6B 4N7
Phone: (604) 428-8450
Email: info@knightswood.ca



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