NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES
TORONTO, Dec. 13, 2021 /CNW/ - MCAN Mortgage Corporation
("MCAN", the "Company" or "we") (TSX: MKP)
today announced the successful completion of its
previously announced rights offering (the "Rights Offering") to
eligible holders of its common shares (the "Common
Shares") which expired at 5:00
p.m. (Toronto time) on
December 8, 2021 (the "Expiry
Date"). The Rights Offering was oversubscribed by 1.4
times.
Upon closing of the Rights Offering, MCAN issued 1,974,729
Common Shares at a price of $16.86
per Common Share for aggregate gross proceeds of $33.3 million. 1,550,423 Common Shares were
issued under the basic subscription privilege and 424,306 Common
Shares were issued under the additional subscription privilege.
Pursuant to the terms of the Rights Offering, each eligible
shareholder was entitled to subscribe for one Common Share for
every 14 rights (the "Rights") held by such shareholder.
Following the completion of the Rights Offering, MCAN has
29,620,939 Common Shares issued and outstanding. The Rights were
halted from trading on the Toronto Stock Exchange as of
12:00 p.m. (Toronto time) on the Expiry Date.
MCAN intends to use all of the proceeds less offering
expenses to fund the Company's mortgage lending and investment
business.
"We are very pleased with our capital raise. This is our second
one this year and it reflects our commitment to growth, in line
with our risk appetite," said Karen
Weaver, President and Chief Executive Officer. "It also
demonstrates continued strong support from our existing
shareholders. We are focused on sustainable growth, reliable
dividends and increasing return on equity to continue to provide
improving shareholder return over the mid-term."
Details of the Rights Offering were set out in a Notice and Circular,
which are available under the
Company's profile on SEDAR
at www.sedar.com.
The Common Shares issuable upon exercise of the Rights have not
been, and will not be, registered under the United States
Securities Act of 1933, as amended, and accordingly, the Rights and
the Common Shares were not being publicly offered for sale in
the "United States" or to "U.S.
persons" (as such terms are defined in Regulation S under the
United States Securities Act of 1933, as amended). This press
release does not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. There shall be
no sale of the securities in any jurisdiction in which an offer to
sell, a solicitation of an offer to buy or a sale would be
unlawful.
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 real estate securities,
loans and 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. The expected
use of proceeds raised under the Rights Offering constitutes
forward-looking information. The forward-looking information
contained in this news release is based on a number of assumptions
which we believe to be reasonable, including assumptions relating
to the expected use of proceeds from the Rights Offering.
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 that the Company may not be able to
find a suitable use of the proceeds of the Rights Offering. 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 are 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