/NOT FOR DISTRIBUTION OR DISSEMINATION INTO
THE UNITED STATES OR THROUGH U.S.
NEWSWIRE SERVICES/
TORONTO, Dec. 21, 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 expired on December 8,
2021 (the "Rights Offering").
Pursuant to the basic subscription privilege under the Rights
Offering, 1,550,423 common shares of the Company (the "Common
Shares") were distributed at a price of $16.86 per Common Share (the "Subscription
Price"). Of these Common Shares, 66,523 were distributed to persons
who are insiders of MCAN and 1,483,900 were issued to the remaining
subscribers under the basic subscription privilege.
Pursuant to the additional subscription privilege under the
Rights Offering, 424,306 Common Shares were distributed at the
Subscription Price. Of these Common Shares, 4,307 were distributed
to persons who are insiders of MCAN and 419,999 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