TORONTO, April 13, 2020 /CNW/ - In response to the
COVID-19 pandemic, MCAN Mortgage Corporation ("MCAN", the "Company"
or "we") (TSX: MKP) has successfully moved to an entirely remote
operation with no business interruption. MCAN is focused on
the safety and well being of our team, customers and
stakeholders. We are also focused on ensuring that the
quality of our work and our customer interactions continue in the
new working environment. We entered this pandemic with a
strong team and financial position and we continue to maintain
solid capital and liquidity in our business. We continue to
proactively manage our business, liquidity, portfolio and
investments. While the duration and scope of the COVID-19
pandemic is unknown and evolving, we believe that we are well
positioned to address challenges and opportunities as they arise in
these uncertain times.
Our Chief Financial Officer, Ms. Dipti
Patel, has chosen to resign for another opportunity and will
be leaving MCAN after the first quarter results are reported and
the Annual General Meeting ("AGM") is held. We appreciate all
of the contributions Ms. Patel has made over her 11-year tenure
with the Company and wish her the best in her future. The
Company has initiated a search for a new Chief Financial Officer
including internal and external candidates.
We will be reporting our first quarter results on May 12, 2020 and providing a more detailed update
on our operations and business at that time. We will hold our
AGM remotely, enabling shareholders to participate virtually in a
live audio webcast. We believe that this is important for the
health and well-being of all of our management, Directors and
shareholders. Please refer to the instructions for
participating at the AGM found in the Management Information
Circular and posted on our website and on SEDAR.
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