TSX: MKP
TORONTO, June 21, 2013 /CNW/ - MCAN Mortgage Corporation
("MCAN", the "Company" or "we") announced that further to the
previously announced 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 Company has received approval of the
Arrangement from the Office of the Superintendent of Financial
Institutions Canada. If all other conditions precedent to the
Arrangement are satisfied or waived, the Company expects that the
Arrangement will be completed on or before July 4, 2013.
MCAN also announced today that Tammy Oldenburg has provided notice to the
Company of her resignation as Vice President and Chief Financial
Officer. Ms. Oldenburg has been with the Company since 2002,
and has acted in the capacity of Vice President and Chief Financial
Officer since 2006. Ms. Oldenburg will continue in her
current role for a transitional period to August 30, 2013. The Company would like to
thank Ms. Oldenburg for her years of dedication and many
contributions to the Company and wishes her continued success in
her future endeavours.
MCAN also announced today the appointment of
Jeffrey Bouganim as MCAN's new Vice
President effective upon the successful completion of the
Arrangement and as Chief Financial Officer effective August 31, 2013.
Mr. Bouganim is currently the CFO of
Xceed. Prior to joining Xceed in 2010, Mr. Bouganim served as
CFO for a Schedule I Chartered Bank in Canada and prior to that, Mr. Bouganim was the
CFO of the brokerage and capital markets operations of another
Schedule I Chartered Bank. Mr. Bouganim is a Chartered Accountant
and also holds a Bachelor of Business Administration from
York University.
"We would like to extend a warm welcome to Mr.
Bouganim in this important role, and we look forward to working
with him towards the successful integration of the Xceed and MCAN
businesses" said William
Jandrisits. "Mr. Bouganim brings significant
experience and expertise to MCAN with many years in mortgage
lending and the financial services industry."
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