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Builders Capital Mortgage Corp Announces Anticipated Second Closing of Bond Offering
Calgary, Alberta--(Newsfile Corp. - December 5, 2024) - Builders Capital Mortgage Corp. (TSXV: BC...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp Announces Anticipated Second Closing of Bond OfferingCalgary, Alberta--(Newsfile Corp. - December 5, 2024) - Builders Capital Mortgage Corp. (TSXV: BCF) (\"Builders Capital\" or \"the Company\") had previously announced its intention to proceed with a participating bond offering (the \"Bonds\") to raise gross proceeds of up to $50 million closing in one or more tranches (the \"Offering\"), the details of which are set forth in a news release dated April 8, 2024. The second tranche of the Offering is now expected to close on January 6, 2025. The net proceeds of the Offering will be used in the Company's ongoing mortgage lending business to fund or acquire short-term, residential construction mortgages in Alberta and British Columbia. The Bonds will participate on a pari passu (equal) basis with the existing shares of the Company relative to returns and risk based on capital contributed to the business of the Company, and accordingly shares and shareholders of the Company are not exposed to additional leverage risk by virtue of the Offering.The Company has been advised that one or more of its directors, officers and insiders (\"Related Parties\") may participate in the Offering for an amount not to exceed 25% of the market capitalization of the Company, with such participation constituting a \"related party transaction\" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). In connection with the Offering, Builders Capital 2019 Ltd. (\"2019\"), a private company owned and controlled by Mr. Sandy Loutitt, a director and CEO of the Company, intends to participate in the Offering to acquire Bonds with a principal amount of $4,250,000 at the closing to occur on January 6, 2025. As consideration, 2019 shall transfer mortgages held by 2019 to the Company in the aggregate amount of approximately $4,250,000. The acquisition of such mortgages are in the purview of the Company's intention to use the net proceeds from the Offering to fund or acquire additional short-term, residential construction mortgages in Alberta and British Columbia. The participation of 2019 in the Offering constitutes a \"related party transaction\" for the purposes of MI 61-101. Other Related Parties may participate in the Offering.The Company is relying upo...