/NOT FOR DISTRIBUTION OR DISSEMINATION INTO
THE UNITED STATES OR THROUGH U.S.
NEWSWIRE SERVICES/
TORONTO, Jan. 10,
2023 /CNW/ - MCAN Mortgage Corporation d/b/a MCAN
Financial Group ("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 20, 2022 (the "Rights
Offering").
Pursuant to the basic subscription privilege under the Rights
Offering, 1,826,553 common shares of the Company (the "Common
Shares") were distributed at a price of $14.00 per Common Share (the "Subscription
Price"). Of these Common Shares, 318,426 were distributed to
persons who are insiders of MCAN and 1,508,127 were issued to
the remaining subscribers under the basic subscription
privilege.
Pursuant to the additional subscription privilege under the
Rights Offering, 623,854 Common Shares were distributed at the
Subscription Price. Of these Common Shares, 127,426 were
distributed to persons who are insiders of MCAN and
496,428 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 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 that 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 the Office of
the Superintendent of Financial Institutions.
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.
Our MCAN Home division operates through MCAN's wholly owned
subsidiary, XMC Mortgage Corporation, which has legally changed its
name effective April 1, 2022, to MCAN
Home Mortgage Corporation.
Website: www.mcanfinancial.com
SOURCE MCAN Mortgage Corporation