Stock market symbol
TSX: MKP
TORONTO,
June 5, 2013 /CNW/ - MCAN Mortgage
Corporation ("MCAN" or the "Company") announced that further to its
press releases dated March 26, 2013
and May 30, 2013 regarding the
acquisition of all of the issued and outstanding common shares
of Xceed Mortgage Corporation ("Xceed") by way of a statutory
plan of arrangement (the "Arrangement"), the Arrangement was
approved today by a final order of the Ontario Superior Court of
Justice (Commercial List). "This approval takes us one more
fundamental step closer to completion of our transaction with
Xceed," commented William
Jandrisits, MCAN's Chief Executive Officer and
President.
If all other conditions precedent to the
Arrangement are satisfied or waived, including receipt of
regulatory approvals, the Company expects that the Arrangement will
be completed on or before July 4,
2013.
Further details relating to the Arrangement can
be found in the press releases issued by the Company on
March 26, 2013 and May 30, 2013 and the management proxy circular of
Xceed dated April 23, 2013 which is
available under Xceed's profile on SEDAR at www.sedar.com.
Forward-Looking Information
This press release may contain forward-looking
statements, including statements regarding the proposed acquisition
by MCAN of all of the issued and outstanding shares of Xceed.
These forward-looking statements can generally be identified as
such because of the context of the statements and often include
words such as MCAN "believes", "anticipates", "expects", "plans",
"estimates" or words of a similar nature. These statements
are based on current expectations, and are subject to a number of
risks and uncertainties that may cause actual results to
differ materially from those contemplated by the forward-looking
statements. Some of the factors that could cause such
differences include legislative or regulatory developments,
competition, technology change, global market activity, interest
rates, changes in government and economic policy and general
economic conditions in geographic areas where MCAN operates.
Reference is made to the risk factors disclosed in MCAN's Annual
Information Form dated March 26, 2013
which are incorporated herein by reference. These and other factors
should be considered carefully and undue reliance should not be
placed on MCAN's forward-looking statements. Subject to applicable
securities law requirements, MCAN does not undertake to update any
forward-looking statements.
About MCAN
MCAN is a public company listed on the TSX under
the symbol MKP and is a reporting issuer in all provinces and
territories in Canada. MCAN
also qualifies as a mortgage investment corporation ("MIC") under
the Income Tax Act (Canada)
(the "Tax Act").
MCAN's primary objective is to generate a
reliable stream of income by investing its corporate funds in a
portfolio of mortgages (including single family residential,
residential construction, non-residential construction and
commercial loans), as well as other types of financial investments,
loans and real estate investments. MCAN employs leverage by issuing
term deposits eligible for Canada Deposit Insurance Corporation
("CDIC") deposit insurance up to a maximum of five times capital
(on a non-consolidated tax basis) as permitted by the Tax
Act. The term deposits are sourced through a network of
independent financial agents. As a MIC, MCAN is entitled to deduct
from income for tax purposes 100% of dividends, except for capital
gains dividends, which are deducted at 50%. Such dividends
are received by the shareholders as interest income and capital
gains dividends, respectively.
MCAN also participates in the Canada Mortgage
Bonds program, and other securitizations of insured
mortgages.
SOURCE MCAN Mortgage Corporation