/NOT FOR DISTRIBUTION OR DISSEMINATION INTO
THE UNITED STATES OR THROUGH U.S.
NEWSWIRE SERVICES/
TORONTO, Aug. 16, 2021 /CNW/ - MCAN Mortgage Corporation
("MCAN", the "Company" or "we") (TSX: MKP) today announced that it
has filed and obtained a receipt for a preliminary short form base
shelf prospectus (the "Shelf Prospectus") with the Securities
Commissions in each of the provinces and territories of
Canada. Once the final Shelf Prospectus is filed and
receipted, MCAN will be allowed to make public offerings of up to
$400 million of common shares,
preferred shares, debt securities, subscription receipts, warrants
and units (the "Securities") during the 25-month period that the
Shelf Prospectus is effective. The Securities may be offered
separately or together, in amounts, at prices and on terms to be
determined based on market conditions at the time of sale, and set
forth in an accompanying prospectus supplement. MCAN has
filed the Shelf Prospectus in order to maintain financial
flexibility and to have the ability to offer Securities on an
accelerated basis to fund current and future growth of the
business.
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"MCAN continues to grow its business as evidenced by an increase
in our corporate assets of 17% year to date," said
Karen Weaver, President and Chief
Executive Officer. "The Shelf Prospectus allows us to access
capital when needed to fund future growth. The Shelf
Prospectus also offers the flexibility for diversification and
expansion of our funding sources in the near term as we look to
evolve our capital markets and other funding strategies."
This news release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
Securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. Further, this news release does not
constitute an offer to sell or the solicitation of an offer to buy
in the United States and the
Securities referred to in this news release may not be offered or
sold in the United States absent
registration under the U.S. Securities Act of 1933 or pursuant to
an applicable exemption from the registration requirements under
the U.S. Securities Act of 1933 and applicable state securities
laws.
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.
A CAUTION ABOUT FORWARD–LOOKING INFORMATION AND STATEMENTS
This news release contains "forward–looking information" within
the meaning of applicable securities laws. Forward–looking
information can be identified by words such as: "expect", "intend,"
"plan," "seek," "believe," "estimate," "future," "likely," "may,"
"should," "will" and similar forward–looking language.
Forward-looking information contained in this news release includes
any stated or implied growth for the Company and successful
execution of an ATM Program. The forward–looking information
contained in this news release is based on a number of assumptions
which we believe to be reasonable including that we will file a
final Shelf Prospectus and obtain a receipt therefore.
Forward–looking information entails various risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in such forward–looking information. Risks
that could cause actual results to differ materially from those
expressed or implied in the forward–looking information contained
in this press release include, but are not limited to, risks
related to the offering or sale of Securities pursuant to the Shelf
Prospectus, the completion of any transactions contemplated in this
news release in the manner anticipated, and the factors discussed
under "Risk Factors" in the Shelf Prospectus. In addition,
general risks relating to capital markets, economic conditions,
regulatory changes, as well as the operations of our business may
also cause actual results to differ materially from those expressed
or implied in such forward–looking information. Forward–looking
information is not a guarantee of future performance, and
management's assumptions upon which such forward–looking
information is based may prove to be incorrect. Investors are
cautioned not to place undue reliance on any forward–looking
information contained herein. The Company disclaims any obligation
to update or revise any forward–looking information contained in
this news release, whether as a result of new information, future
events or otherwise, except to the extent required by law.
SOURCE MCAN Mortgage Corporation