Atrium Mortgage Investment Corporation Announces $15 Million Public Offering and $10 Million Non-Brokered Private Placement o...
08 Octobre 2019 - 10:34PM
Atrium Mortgage Investment Corporation (TSX: AI, AI.DB, AI.DB.B,
AI.DB.C, AI.DB.D, AI.DB.E) (“Atrium”) announced today that it has
entered into an agreement with a syndicate of underwriters bookrun
by TD Securities Inc. and RBC Capital Markets and co-led by CIBC
Capital Markets, pursuant to which the underwriters will
purchase 1,120,000 common shares (the “Shares”) of Atrium at a
price of $13.40 per Share (the “Issue Price”) for gross proceeds of
$15,008,000 (the “Public Offering”). Atrium has also granted to the
underwriters an over-allotment option to purchase up to an
additional 168,000 Shares at the Issue Price, exercisable in
whole or in part at any time for a period of up to 30 days
following closing of the Public Offering, to cover over-allotments.
If the over-allotment option is exercised in full, the gross
proceeds of the Public Offering will total $17,259,200.
Atrium has also agreed to sell 746,300
Shares to an entity controlled by an existing shareholder of Atrium
on a non-brokered private placement basis, at the Issue Price, for
gross proceeds of approximately $10 million (the “Non-Brokered
Private Placement”). The Non-Brokered Private Placement is subject
to certain approvals and is expected to close concurrently with the
closing of the Public Offering. Shares sold under the Non-Brokered
Private Placement will be subject to a four-month hold period.
Closing of the Public Offering is not contingent on the closing of
the Non-Brokered Private Placement.
Atrium will raise gross proceeds of
approximately $25 million from the Public Offering and Non-Brokered
Private Placement (assuming the over-allotment option in connection
with the Public Offering is not exercised). Atrium will use the net
proceeds of the Public Offering and the Non-Brokered Private
Placement to repay existing indebtedness under its revolving
operating credit facility, which will then be available to be
drawn, as required, for general corporate purposes, particularly
funding future mortgage loan opportunities.
The Public Offering is expected to close on or
about October 18, 2019 and is subject to certain conditions
including, but not limited to, the receipt of all necessary
approvals, including the approval of the Toronto Stock
Exchange.
A prospectus supplement to Atrium's short form
base shelf prospectus dated October 10, 2017 will be filed by no
later than October 10, 2019 with the securities regulatory
authorities in all provinces of Canada, except Québec. No
securities regulatory authority has either approved or disapproved
of the contents of this news release. The securities being offered
have not been, and will not be, registered under the United States
Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the United States unless an
exemption from registration is available. This news release is for
information purposes only and does not constitute an offer to sell
or a solicitation of an offer to buy any securities of Atrium in
any jurisdiction.
About Atrium
Canada’s Premier Non-Bank
Lender™
Atrium is a non-bank provider of residential and
commercial mortgages that lends in major urban centres in Canada
where the stability and liquidity of real estate are high. Atrium’s
objectives are to provide its shareholders with stable and secure
dividends and preserve shareholders’ equity by lending within
conservative risk parameters.
Atrium is a Mortgage Investment Corporation
(MIC) as defined in the Income Tax Act (Canada), so is not taxed on
income provided that its taxable income is paid to its shareholders
in the form of dividends within 90 days after December 31 each
year. Such dividends are generally treated by shareholders as
interest income, so that each shareholder is in the same position
as if the mortgage investments made by the company had been made
directly by the shareholder. For further information, please refer
to regulatory filings available at www.sedar.com or Atrium’s
website at www.atriummic.com.
Forward-Looking Statements
This news release contains forward-looking
statements. Much of this information can be identified by words
such as “expect to,” “expected,” “will,” “estimated” or similar
expressions suggesting future outcomes or events, and includes the
expected use of proceeds and the expected closing date of the
Public Offering and the Non-Brokered Private Placement. Atrium
believes the expectations reflected in such forward-looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon.
Forward-looking statements are based on current
information and expectations that involve a number of risks and
uncertainties, which could cause actual results or events to differ
materially from those anticipated. These risks include, but are not
limited to, risks associated with the ability to satisfy
regulatory, stock exchange and commercial closing conditions of the
Public Offering and the Non-Brokered Private Placement, the
uncertainty associated with accessing capital markets and the risks
related to Atrium’s business, including those identified in
Atrium’s annual information form for the year ended December 31,
2018 under the heading “Risk Factors” (a copy of which may be
obtained at www.sedar.com). Forward-looking statements contained in
this news release are made as of the date hereof and are subject to
change. All forward-looking statements in this news release are
qualified by these cautionary statements. Except as required by
applicable law, Atrium undertakes no obligation to update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
For further information, please
contact
Robert G. GoodallPresident and Chief Executive Officer |
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Jennifer ScoffieldChief Financial Officer |
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(416) 867-1053info@atriummic.comwww.atriummic.com |
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