Negative Gain was founded in Toronto, Ontario by Peter Warner who wrote all of the lyrics and provided rehearsal space in his basement. Filling out the lineup was Grant C. Slavin on guitar, Steve Currie on bass, and Andrew Mosely on drums. All members were in their mid-teens at the time. Their influences included Minor Threat, Millions of Dead Cops, the Misfits, and the Dead Kennedys, as well as local TO bands Direct Action and Sudden Impact.

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