TSX Symbol: FC
/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Nov. 23, 2018 /CNW/ - Firm Capital Mortgage
Investment Corporation (the "Corporation") (TSX: FC) is
pleased to announce that it has closed its previously announced
bought deal offering (the "Offering") of $25,000,000 aggregate principal amount of 5.50%
convertible unsecured subordinated debentures of the Corporation
(the "Debentures") due January 31,
2026 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
$14.60 per common share (or
approximately 68.4932 common shares per $1,000 principal amount of Debentures). The
Debentures are listed and posted for trading on the Toronto Stock
Exchange under the symbol FC.DB.J.
The Offering was underwritten by a syndicate of underwriters
that was co-led by TD Securities Inc., CIBC Capital Markets and
Scotiabank, and which included National Bank Financial Inc., RBC
Dominion Securities Inc., Canaccord Genuity Corp., Desjardins
Securities Inc., Industrial Alliance Securities Inc., Echelon
Wealth Partners Inc. and GMP Securities L.P. (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 $3,750,000 aggregate principal amount of
Debentures.
The net proceeds of the Offering will be used for debt
repayment, new investments and for general corporate purposes.
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 year are outlined in the audited 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.
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 short form base shelf prospectus dated July 17, 2017, the prospectus supplement thereto
dated November 16, 2018 and the
Corporation's annual information form for the year ended
December 31, 2017, under "Risk
Factors" (copies of which can be obtained at www.sedar.com). Those
risks and uncertainties include, among others, risks associated
with the ability of the Corporation to allocate the net proceeds of
the Offering as stated above, 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
