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TORONTO, 23 August 2021 / CNW / – MCAN Mortgage Corporation (“MCAN”, “Company” or “We”) (TSX: MKP) today announced that it has filed and received a receipt for the final short master prospectus (“Shelf Prospectus”) with commissions for securities in each of the provinces and territories of Canada. Preliminary prospectus for the base shelf has been submitted and received 13 august, 2021. With MCAN Shelving Prospectus, it is now allowed to make public offers until $ 400 million ordinary shares, preferred shares, debt securities, subscription receipts, warrants and shares (“Securities”) during the 25-month period of validity of the Shelf Prospectus. Securities may be offered separately or together, in quantities, at prices and on terms that will be determined based on market conditions at the time of sale and set out in the accompanying annex to the prospectus. MCAN filed a shelf prospectus to maintain financial flexibility and be able to offer Securities on an accelerated basis to finance current and future business growth.
This press release does not constitute an offer to sell or an invitation to an offer to buy, nor is it permitted to sell Securities in any jurisdiction in which such an offer, offer or sale would be illegal. In addition, this press release does not constitute an offer to sell or an offer to buy. United States and Securities mentioned in this press release may not be offered or sold in United States not registered under the US Securities Act of 1933 or under the applicable exemption from registration requirements under the US Securities Act of 1933 and applicable state securities laws.
MCAN is a publicly traded company listed on the Toronto Stock Exchange under the symbol MKP and is the issuer of statements in all provinces and territories in Canada… MCAN also qualifies as a Mortgage Investment Corporation (MIC) under the Income Tax Act (Canada) (“Tax Law”).
The main goal of the company is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, including single-family housing, residential construction, non-residential construction and commercial loans, as well as other types of securities, loans and real estate. investments. MCAN uses leverage by issuing term deposits that are eligible for deposit insurance by the Canadian Deposit Insurance Corporation and come through a network of independent financial agents. We manage capital and asset balances in accordance with the provisions and restrictions of both the Tax Act and OSFI.
As MIC, we are entitled to deduct the dividends we pay to shareholders from our taxable profits. Regular dividends are treated as interest income to shareholders for income tax purposes. We may also pay capital gains dividends, which will be treated as capital gains to shareholders for income tax purposes. Dividends paid to foreign investors may be subject to withholding tax. To meet the MIC criteria, 67% of our tax-assessed unconsolidated assets must be held in cash or cash equivalents and a mortgage.
XMC Mortgage Corporation, a wholly owned subsidiary of MCAN, develops single-family home mortgage products worldwide. Canada…
WARNING ABOUT INTENDED INFORMATION AND STATEMENTS
This press release contains “forward-looking information” in the meaning of applicable securities laws. Forward-looking information can be identified by words such as: “expect”, “intend”, “plan”, “seek”, “believe”, “estimate”, “in the future”, “likely”, “possibly”, “should” … , “Will” and similar forward-looking formulations. The forward-looking information contained in this press release includes any stated or anticipated growth of the company. The forward-looking information contained in this press release is based on a number of assumptions that we believe are reasonable. 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 associated with the offer or sale of Securities in accordance with Shelving prospectus, and the factors discussed in the Risk Factors section of the Polochny prospectus. In addition, general risks associated with capital markets, economic conditions, regulatory changes, and 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 results and management’s assumptions on which such forward-looking information is based could be incorrect. Investors are advised not to place undue reliance on any forward-looking information contained in this document. The Company disclaims any obligation to update or revise any forward-looking information contained in this press release, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE MCAN Mortgage Corporation
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