TORONTO, Feb. 26, 2020 /CNW/ - MCAN Mortgage Corporation
("MCAN", the "Company" or "we") (TSX: "MKP") announced today that
Ian Sutherland will step down as
Chair of the Board (the "Chair"), however will remain on the Board
of Directors (the "Board") to facilitate Board renewal and
transition. Ian has held the position of Chair since
2010. In previous years he has also served in various
management and Board roles. As a founding partner, Ian's
leadership and guidance has advanced the Company's strategy and
contributed to its success and growth over the past 30 years.
The Board also announced today that Derek Sutherland has been appointed as Chair.
Derek brings with him 12 years of experience with MCAN in
management and since 2017, as a Director. Derek previously
held various positions including Chief Risk Officer at MCAN, and is
a CPA, CBV and a Corporate Director (ICD.D). Derek also
serves on the Board of Directors of a private company regulated by
the Office of the Superintendent of Financial Institutions
("OSFI").
"I am honoured by the Board's confidence and support to continue
the success achieved under Ian's leadership. MCAN has a strong
professional Board and management team. I look forward to working
with both the Board and management to further enhance MCAN's
performance against our stated vision and objectives", said
Derek Sutherland. "On behalf
of the Board, I offer Ian our thanks for guiding MCAN over the
years while laying the foundation for continued success of the
company that he has been an integral part of founding and
developing."
The Company also announced Susan Doré and Verna Cuthbert will be retiring and not standing
for re-election at the Annual General Meeting of
Shareholders. Susan Doré has been a Director of MCAN
since 2010 and was previously a member of management of the Company
and its predecessors serving for a total of 33 years. Her
contributions and commitment to the Company have been instrumental
to our success. Verna has served on the Board since 2013,
providing the benefits of her legal experience and risk and general
advice during her tenure.
"I have had the pleasure of working with Ian since joining the
Board in 2011 and benefitted immensely from his support and
guidance over the past year" said Karen
Weaver, President and CEO. "Susan and Verna have been
excellent business advisors for the Company and on behalf of the
board and management team we wish them well in their retirement.
I look forward to continuing our work with all Board members
in guiding MCAN in the future."
MCAN is a public company listed on the Toronto Stock Exchange
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").
The Company's primary objective is to generate a reliable
stream of income by investing in a diversified portfolio of
Canadian mortgages, including single family residential,
residential construction, non-residential construction and
commercial loans, as well as other types of securities, loans and
real estate investments. MCAN employs leverage by issuing term
deposits that are eligible for Canada Deposit Insurance Corporation
deposit insurance and are sourced through a network of independent
financial agents. We manage our capital and asset balances
based on the regulations and limits of the Tax Act, the Trust and
Loan Companies Act (Canada) and
OSFI.
As a MIC, we are entitled to deduct the dividends that we pay
to shareholders from our taxable income. Regular dividends
are taxed as interest income to shareholders. We are also
able to pay capital gains dividends, which would be taxed as
capital gains to shareholders for income tax purposes. Dividends
paid to foreign investors may be subject to withholding
taxes. Additionally, to continue to meet the MIC criteria,
67% of our non-consolidated assets measured on a tax basis are
required to be held in cash or cash equivalents and residential
mortgages.
MCAN's wholly-owned subsidiary, XMC Mortgage Corporation, is
an originator of single family residential mortgage products across
Canada.
SOURCE MCAN Mortgage Corporation