TORONTO, July 26,
2023 /CNW/ - Standard Mercantile Acquisition Corp.
(TSX: SMA) (the "Company") announces that it has received
the final $2.8 million principal
payment (the "Final Alberta Mortgage Payment") owing to
it under the Company's interest in the mortgage on its Alberta residential property (the "Alberta
Mortgage"), which was previously the largest remaining mortgage
in the Company's mortgage portfolio. As a result of the receipt of
such payment, the Company no longer has an interest in the Alberta
Mortgage.
In connection with the receipt of the Final Alberta Mortgage
Payment, the board of directors of the Company has declared a
special distribution of $0.40 per
Class A share of the Company (the "Special Distribution").
The Special Distribution, which constitutes a return of capital
pursuant to the winding-up of the Company's business as approved by
shareholders of the Company on June 16,
2016, as amended on May 6,
2021 (the "Orderly Wind-Up"), will be paid on
August 17, 2023 to holders of Class A
shares of record at the close of business on August 4, 2023. As of July
25, 2023, there were 7,298,567 Class A shares
outstanding.
The Special Distribution payment is not subject to any
condition, will be made in cash and will be subject to the "Due
Bill" trading requirements mandated by the Toronto Stock Exchange
(the "TSX"). Because the amount of the Special Distribution
represents a distribution of greater than 25% of the market value
of the Class A shares on the declaration date, the TSX has required
that the Class A shares trade on a "Due Bill" basis during the
period (the "Due Bill Period") from and including
August 3, 2023 until the close of
trading on August 17, 2023 (the
"Payment Date"). This means that buyers of Class A shares
through the facility of the TSX during the Due Bill Period will
receive the Special Distribution payment, provided they continue to
be holders of the applicable Class A shares on the Payment
Date.
The Class A shares will commence trading on an ex-distribution
basis (i.e., without an attached "Due Bill" entitlement to the
Special Distribution) commencing the opening of trading on
August 18, 2023 (i.e., the next
trading day after the Payment Date). The Due Bill redemption date
will be August 21, 2023. As a result
of the Class A shares trading on a Due Bill basis during the Due
Bill Period, those entitled to be paid the Special Distribution
owing on the Due Bills should expect to receive that payment by the
Due Bill redemption date of August 21,
2023.
About the Company
The Company holds a portfolio of mortgages in Canada. At the Company's 2021 annual and
special meeting of shareholders, the Company sought and received
shareholder approval to change its name to "Standard Mercantile
Acquisition Corp.", among other amendments to the articles of the
Company. The Company is focused on monetizing its remaining
mortgage assets and is considering options to enable its
shareholders to participate in the potential future value of the
Company through transactions that could capitalize on the Company's
public listing. The Board has experience in sourcing, evaluating
and executing transactions of this nature.
Forward-Looking
Statements
Statements in this press release contain forward-looking
information. Such forward-looking information may be identified by
words such as "anticipates", "plans", "proposes", "estimates",
"intends", "expects", "believes", "may" and "will". The
forward-looking statements are founded on the basis of expectations
and assumptions made by the Company. Details of the risk factors
relating to the Company and its business are discussed under the
heading "Business Risks and Uncertainties" in the Company's annual
Management's Discussion & Analysis for the year ended
December 31, 2022 and under the
heading "Risk Factors" in the Company's Annual Information Form
dated March 24, 2023, copies of which
are available on the Company's SEDAR profile at www.sedar.com. Most
of these factors are outside the control of the Company. Investors
are cautioned not to put undue reliance on forward-looking
information. These statements speak only as of the date of this
press release. Except as otherwise required by applicable
securities statutes or regulation, the Company expressly disclaims
any intent or obligation to update publicly forward-looking
information, whether as a result of new information, future events
or otherwise.
SOURCE Standard Mercantile Acquisition Corp.
