/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TSX Symbol: FC
TORONTO, Aug. 31, 2017 /CNW/ - Firm Capital Mortgage
Investment Corporation (the "Corporation") (TSX: FC) is
pleased to announce that holders representing approximately 67% of
the outstanding $31,443,000 aggregate
principal amount of 5.75% convertible unsecured subordinated
debentures of the Corporation due October
31, 2017 (the "Debentures"), have elected to receive
freely tradeable common shares in the capital of the Corporation
("Shares") pursuant to the previously-announced early
redemption of Debentures.
The Corporation would like to thank its Debentureholders for
their support, recognizing that a majority of holders chose to
receive Shares instead of cash. Such confidence is likely
fostered by, among other matters, the fact that the Corporation has
paid dividends every month since becoming a public entity in 1999,
as well as the fact that the Corporation's regular dividend of
$0.078 per Share has remained
unchanged over the past 10 years.
As announced on August 14, 2017,
the Corporation intends to redeem early its outstanding Debentures,
effective September 20, 2017 (the
"Redemption Date"). The Corporation pays a special year-end
dividend in respect of its Shares.
The Debentures, which are listed and posted for trading on the
Toronto Stock Exchange under the symbol FC.DB.A, will cease trading
subsequent to the Redemption Date.
About the Corporation
Where Mortgage Deals Get Done®
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 underserviced by large lending
institutions. Lending activities to date continue to develop a
diversified mortgage portfolio, producing a stable return to
Shareholders. Full reports of the financial results of the
Corporation for the three and six month periods ended June 30, 2017 are outlined in the unaudited
financial statements and the related management's discussion and
analysis of Firm Capital, available on the SEDAR website at
www.sedar.com. In addition, supplemental information is available
on Firm Capital's website at www.firmcapital.com.
Forward-Looking Statements
This news 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,
including the redemption of the Debentures or any dividends
announced and paid by the Corporation in respect of Shares.
Although the Corporation intends to make distributions of its
available cash to shareholders in accordance with its dividend
policy, these cash distributions are not assured. The actual amount
distributed to shareholders will depend on numerous factors,
including but not limited to the Corporation's financial
performance, debt covenants and obligations, working capital
requirements, composition of the Corporation's mortgage portfolio,
availability of mortgage investments and fluctuations in interest
rates that impact the aggregate yield on mortgage investments. The
market value of the Shares may deteriorate if the Corporation is
unable to meet its cash distribution targets in the future, and
that deterioration may be material. 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 include the
Corporation's proposed use of the net proceeds of the Offering, and
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 for the year ended
December 31, 2016 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 are presented to the Corporation; and adequate bank
indebtedness and bank loans are available to the Corporation.
Although the forward-looking information continued in this new
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 news 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.
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 being
offered have not been and will not be registered under the United
States Securities Act of 1933 and accordingly will not be offered,
sold or delivered, directly or indirectly within the United States, its possessions and other
areas subject to its jurisdiction or to, or for the account or for
the benefit of a U.S. person, except in limited
circumstances.
No securities regulatory authority has either approved or
disapproved of the contents of this press release. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities
referred to herein in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
Boutique Mortgage Lenders®
SOURCE Firm Capital Mortgage Investment Corporation
