/NOT FOR DISTRIBUTION OR DISSEMINATION INTO
THE UNITED STATES OR THROUGH U.S.
NEWSWIRE SERVICES/
TORONTO, June 17, 2021 /CNW/ - MCAN Mortgage Corporation
("MCAN", the "Company" or "we") (TSX: MKP) today announced
additional information regarding the participation of insiders of
MCAN in the rights offering of the Company that closed on
June 10, 2021 (the "Rights
Offering").
Pursuant to the basic subscription privilege under the Rights
Offering, 1,191,560 common shares of the Company (the "Common
Shares") were distributed at a price of $15.65 per Common Share (the "Subscription
Price"). Of these Common Shares, 197,520 were distributed to
persons who are insiders of MCAN and 994,040 were issued to the
remaining subscribers under the basic subscription privilege.
Pursuant to the additional subscription privilege under the
Rights Offering, 114,907 Common Shares were distributed at the
Subscription Price. Of these Common Shares, 27,936 were distributed
to persons who are insiders of MCAN and 86,971 were issued to the
remaining subscribers under the additional subscription
privilege.
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 both the Tax Act and OSFI.
As a MIC, we are entitled to deduct the dividends that we pay
to shareholders from our taxable income. Regular dividends
are treated as interest income to shareholders for income tax
purposes. We are also able to pay capital gains dividends,
which would be treated as capital gains to shareholders for income
tax purposes. Dividends paid to foreign investors may be subject to
withholding taxes. 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