Mortgage Corporation MCAN Announces Submission of Preliminary Prospectus for $ 400 Million

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/ NOT FOR DISTRIBUTION OR DISTRIBUTION IN UNITED STATES OR THROUGH US NEWS SERVICES /

TORONTO, August 16, 2021 / CNW / – MCAN Mortgage Corporation (“MCAN”, “Company” or “We”) (TSX: MKP) today announced that it has filed and received a receipt for a preliminary short master prospectus (“Shelf Prospectus”) with commissions for securities in each of the provinces and territories of Canada. Once the final shelf prospectus has been filed and received, MCAN will be allowed to make public offers up to $ 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 individually 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 prospectus annex. 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.

MCAN Mortgage Corporation logo (CNW Group / MCAN Mortgage Corporation)

MCAN Mortgage Corporation logo (CNW Group / MCAN Mortgage Corporation)

“MCAN continues to develop its business, as evidenced by the increase in our corporate assets by 17% since the beginning of the year,” said Karen Weaver, President and CEO. “The shelf prospectus allows us to access capital when it is needed to finance future growth. Offshore Avenue also offers the flexibility to diversify and expand our funding sources in the near future as we strive to develop our capital markets and other funding strategies. ”

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 company’s main goal 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, is the originator of single-family home mortgage products worldwide. Canada

WARNING REGARDING FORWARD-LOOKING 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 promising formulations. The forward-looking information contained in this press release includes any stated or anticipated growth of the Company and the successful implementation of the ATM Program. The forward-looking information contained in this press release is based on a number of assumptions that we believe are reasonable, including that we will file a final prospectus and receive a receipt. 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 Shelkoy the prospectus, completing any transactions contemplated in this news release in the expected manner, and the factors discussed in the Risk Factors section of the Polochny Prospectus. In addition, general risks associated with capital markets, economic conditions, regulatory developments, 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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