/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Dec. 21, 2016 /CNW/ - Firm Capital Mortgage
Investment Corporation (the "Corporation") (TSX: FC) is
pleased to announce that it has closed its previously announced
bought deal prospectus offering of $22,500,000 aggregate principal amount of 5.20%
convertible unsecured subordinated debentures of the Corporation
(the "Debentures") due December 31,
2023 at a price of $1,000 per
Debenture. Each Debenture is convertible into common shares of the
Corporation at the option of the holder at a conversion price of
$15.25 per common share (or
approximately 65.5738 common shares per $1,000 principal amount of Debentures). The
Debentures are listed and posted for trading on the TSX under the
symbol FC.DB.G.
The offering was underwritten by a syndicate of underwriters
co-led by CIBC Capital Markets and TD Securities Inc. and which
included Scotia Capital Inc., Canaccord Genuity Corp., Echelon
Wealth Partners Inc., GMP Securities L.P., Desjardins Securities
Inc. and Dundee Securities Ltd. (collectively, the
"Underwriters"). The Corporation has also granted the
Underwriters an over-allotment option, exercisable in whole or in
part, at any time up to 30 days after the closing of the offering
to purchase up to an additional $3,375,000 aggregate principal amount of
Debentures.
The net proceeds of the offering are intended to be used to
repay bank and other debt, including the redemption of certain of
the Corporation's outstanding debentures maturing in 2017, to fund
new investments and for general corporate purposes.
This press release shall not constitute an offer to sell or
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities will not be
and have not been registered under the United States Securities Act
of 1933, as amended, or the securities laws of any state of
the United States and may not be
offered or sold in the United
States absent registration or applicable exemption from the
registration requirements.
About the Corporation
The Corporation, through its mortgage banker, Firm Capital
Corporation, is a non-bank lender providing residential and
commercial short-term bridge and conventional real estate
financing, including construction, mezzanine and equity
investments. The Corporation's investment objective is the
preservation of shareholders' equity, while providing shareholders
with a stable stream of monthly dividends from investments. The
Corporation achieves its investment objectives through investments
in selected niche markets that are under-serviced by large lending
institutions. Lending activities to date continue to develop a
diversified mortgage portfolio, producing a stable return to
shareholders. The Corporation is a Mortgage Investment Corporation
(MIC) as defined in the Income Tax Act (Canada). Accordingly, the Corporation 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 Corporation had been made directly by the
shareholder. Full reports of the financial results of the
Corporation for the year are outlined in the audited financial
statements and the related management discussion and analysis of
the Corporation, available on SEDAR at www.sedar.com. In addition,
supplemental information is available on the Corporation's website
at www.firmcapital.com.
Where Mortgage Deals Get
Done®
Boutique Mortgage
Lenders®
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within
the meaning of applicable securities laws including, among others,
statements concerning our objectives, our strategies to achieve
those objectives, our performance, our mortgage portfolio and our
distributions, as well as statements with respect to management's
beliefs, estimates, and intentions, and similar statements
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "outlook", "objective",
"may", "will", "expect", "intent", "estimate", "anticipate",
"believe", "should", "plans" or "continue" or similar expressions
suggesting future outcomes or events. Such forward-looking
statements reflect management's current beliefs and are based on
information currently available to management.
These statements are not guarantees of future performance and
are based on our estimates and assumptions that are subject to
risks and uncertainties, including those described in the
Corporation's Annual Information Form under "Risk Factors" (a copy
of which can be obtained at www.sedar.com). Those risks and
uncertainties include, among others, risks associated with mortgage
lending, dependence on the Corporation's manager and mortgage
banker, competition for mortgage lending, real estate values,
interest rate fluctuations, environmental matters, shareholder
liability and the introduction of new tax rules. Material factors
or assumptions that were applied in drawing a conclusion or making
an estimate set out in the forward-looking information include,
among others, adequate mortgage investment opportunities being
presented to the Corporation and adequate bank indebtedness and
bank loans being available to the Corporation. Although the
forward-looking information contained in this press release is
based upon what management believes are reasonable assumptions,
there can be no assurance that actual results and performance will
be consistent with these forward-looking statements.
All forward-looking statements in this press release are
qualified by these cautionary statements. Except as required
by applicable law, the Corporation undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
SOURCE Firm Capital Mortgage Investment Corporation
