Stock market symbol
TSX: MKP
TORONTO, July 8, 2013 /CNW/ - Further to the joint press
release issued by MCAN Mortgage Corporation ("MCAN" or the
"Company") and Xceed Mortgage Corporation ("Xceed") on July 4, 2013 announcing the closing of the
acquisition by MCAN 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"),
MCAN announced today the final pro-rated consideration to be paid
to Xceed shareholders who elected, or were deemed to have elected,
to receive cash consideration for their Xceed Shares.
Pursuant to the Arrangement, Xceed shareholders
were entitled to elect to receive either Cdn$1.75 or 0.118 of a common share of MCAN
("MCAN Shares") for each Xceed Share held, subject to pro-rationing
as necessary to effect the maximum available cash consideration.
After giving effect to pro-rationing in accordance with the terms
of the Arrangement, Xceed shareholders who elected, or were deemed
to have elected, to receive cash consideration will receive, for
each Xceed Share held, cash equal to approximately Cdn$1.13 and approximately 0.042 of an MCAN
Share. The aggregate cash consideration paid by MCAN is
$30,292,062.50 and the aggregate
number of MCAN Shares issued to Xceed shareholders who elected, or
were deemed to have elected, to receive cash consideration is
1,113,713. An additional 418,190 MCAN Shares were issued to Xceed
shareholders who elected, or were deemed to have elected, to
receive share consideration.
Forward-Looking Information
This press release may contain forward-looking
statements, including statements regarding the 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