/NOT FOR DISTRIBUTION OR DISSEMINATION INTO
THE UNITED STATES OR THROUGH U.S.
NEWSWIRE SERVICES/
TORONTO, March 18,
2024 /CNW/ - MCAN Mortgage Corporation d/b/a MCAN
Financial Group ("MCAN", the "Company" or "we")
(TSX: MKP) today announced the launch of an overnight marketed
offering (the "Offering") of common shares (the "Common
Shares") of the Company for total gross proceeds of
approximately $20 million. The
Offering is being conducted through a syndicate of underwriters
co-led by Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.
(collectively, the "Underwriters").
The Offering is expected to be priced in the context of the
market at the time of entering into a definitive underwriting
agreement between the Company and the Underwriters. There can be no
assurance as to whether or when the Offering may be completed, or
as to the actual size or terms of the Offering. The Company will
grant the Underwriters an over-allotment option exercisable, in
whole or in part, to purchase up to an additional $3 million of Common Shares at the price sold
pursuant to the Offering for up to 30 days following the closing of
the Offering, for market stabilization purposes and to cover
over-allotments, if any (the "Over-Allotment Option").
The Corporation expects to use the net proceeds from the
Offering for its residential mortgage lending and residential
construction lending business. The Offering is expected to close on
or around March 28, 2024, or such
other date as agreed to between the Company and the Underwriters,
and is subject to market and other customary conditions, including
the approval of the Toronto Stock Exchange.
The Offering will be made in each of the provinces and
territories of Canada (except
Quebec) pursuant to the Company's
short form base shelf prospectus dated August 14, 2023 (the "Base Shelf
Prospectus"). A prospectus supplement (the "Prospectus
Supplement", and together with the Base Shelf Prospectus, the
"Prospectus") will be filed in each of the provinces and
territories of Canada. The
Offering may also be made in the United
States on a private placement basis pursuant to an exemption
from the registration requirements of the U.S. Securities Act of
1933, as amended (the "U.S. Securities Act"), and applicable
state securities laws. The Prospectus contains important detailed
information about the Company and the Offering. Before you invest,
you should read the Prospectus and the other documents the Company
has filed for more complete information about the Company and the
Offering. The Base Shelf Prospectus is available and the Prospectus
Supplement will be available under the Company's profile on SEDAR+
at www.sedarplus.ca.
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
Common Shares 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
Common Shares referred to in this news release may not be offered
or sold in the United States
absent registration under the U.S. Securities Act or pursuant to an
applicable exemption from the registration requirements under the
U.S. Securities Act and applicable state securities laws.
About MCAN
MCAN Mortgage Corporation d/b/a MCAN Financial Group 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).
MCAN is the largest MIC in Canada
and the only federally regulated MIC.
MCAN's primary objective is to generate a reliable stream of
income by investing in a diversified portfolio of Canadian
mortgages, including residential mortgages, 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. MCAN is Investing in Communities and Homes for
Canadians.
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 statements relating to the expected size
of the Offering, the entry into the underwriting agreement, the
grant of the Over-Allotment Option, the closing of the Offering,
the successful marketing of the Offering and MCAN's expected use of
the net proceeds of the Offering. The forward‐looking information
contained in this news release is based on a number of assumptions
which we believe to be reasonable including, but not limited to,
MCAN's ability to successfully market, price and close the
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. In particular, the successful marketing and pricing of
the Offering is dependent on market conditions and MCAN may not be
successful in completing the Offering. Further, see risks as
discussed under "Risk Factors" in the Prospectus and risks as
discussed in under "Risk Factors" in the Company's most recent
annual information form available under the Company's profile on
SEDAR+ at www.sedarplus.ca. 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