TORONTO,
July 4, 2013 /CNW/ - MCAN Mortgage
Corporation (TSX:MKP) ("MCAN", the "Company" or "we") and Xceed
Mortgage Corporation (TSX:XMC) ("Xceed") are pleased to
announce today that the previously announced acquisition of each of
the issued and outstanding common shares of Xceed ("Xceed Shares")
pursuant to a court-approved plan of arrangement under the
Business Corporations Act (Ontario) (the "Arrangement") has closed. Xceed
is now a wholly owned subsidiary of MCAN.
Pursuant to the Arrangement, holders of Xceed
Shares were entitled to elect to receive Cdn$1.75 in cash or 0.118 of a common share of
MCAN (the "MCAN Shares") for each Xceed Share held, subject to
pro-ration. Pursuant to the elections or deemed elections of
holders of Xceed Shares and after giving effect to pro-rationing in
accordance with the Arrangement, in consideration for the transfer
of Xceed Shares, MCAN paid aggregate cash consideration equal to
$30,292,062.50, and issued 1,531,903
MCAN Shares, to the holders of Xceed Shares.
The Xceed Shares will cease to be listed on the
Toronto Stock Exchange on or about the close of business on
July 8, 2013. Following the delisting
of the Xceed Shares, Xceed will apply to the relevant securities
regulatory authorities to cease being a reporting issuer in all of
the provinces of Canada in which
it is currently a reporting issuer.
"MCAN is pleased to have completed its
acquisition of Xceed," said William
Jandrisits, MCAN's President and Chief Executive
Officer. "We look forward to integrating the two companies to
achieve value for our shareholders. New capital received as
part of this transaction allows approximately $120 million of new capacity for MCAN to
grow."
Material change reports relating to the
Arrangement will be filed with the Canadian securities regulators
and will be available under MCAN's and Xceed's respective profiles
on SEDAR at www.sedar.com. MCAN's material change report will also
be available on MCAN's website at www.mcanmortgage.com.
Forward-Looking Information
This press release may contain forward-looking
statements, including statements regarding certain strategic
benefits and operational, competitive and cost efficiencies
expected to result from the Arrangement. These
forward-looking statements can generally be identified as such
because of the context of the statements and often include words
such as "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 and Xceed
operate. Reference is made to the risk factors disclosed in
MCAN's Annual Information Form dated March
26, 2013 which are incorporated herein by reference.
Reference is also made to the risk factors disclosed in Xceed's
management proxy circular dated April 23,
2013. These and other factors should be considered carefully
and undue reliance should not be placed on MCAN's or Xceed's
forward-looking statements. Subject to applicable securities law
requirements, neither MCAN nor Xceed undertakes 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.
About Xceed Mortgage
Xceed Mortgage Corporation, based in
Toronto, is a Canadian provider of
residential mortgages that it originates in Canada. Xceed has approximately $0.8 billion of mortgages under
administration.
SOURCE MCAN Mortgage Corporation