Business
GC-Global Capital Corp. Announces Its Intention to Spin-Out Real Estate Investment Subsidiary
Toronto, Ontario--(Newsfile Corp. - October 23, 2013) - GC-Global Capital Corp. (TSXV: GDE.A)...
About this update from Fountain Asset Corp.
[{"type":"text","content":"\nGC-Global Capital Corp. Announces Its Intention to Spin-Out Real Estate Investment SubsidiaryToronto, Ontario--(Newsfile Corp. - October 23, 2013) - GC-Global Capital Corp. \n(TSXV: GDE.A) (\"Global Capital\") announces its intention to spin-out a \nwholly-owned subsidiary real estate investment company (\"Subco\") in the form of \na return of capital share distribution to Global Capital's shareholders. The \ncore investment of Subco is its shareholdings of Marathon Mortgage Corporation \n(\"MMC\"). The shares of Subco will be distributed to Global Capital's \nshareholders through a reduction of paid up capital. Following the closing of \nthe spin-out transaction, Subco intends to seek a public listing of its \nshares.\nThe spin-out is intended to give Global Capital shareholders a \ndirect interest in Subco's Canadian real estate market focused investments. The \ncurrent core investment is Marathon Mortgage Corporation a residential mortgage \norigination, sales and servicing business. Today, Global owns 25% of MMC. MMC \nbrings together the former management team of First Marathon Mortgage Corp. \nwhich at the time of its sale in 2002 was servicing approximately $4 Billion in \nmortgages. Marathon's management team and business operations are in place and \nready to ramp up operations. Through the MMC management team's alliances with \nmajor financial institutions and mortgage brokerage firms, MMC's goal is to \nbecome one of the most reliable residential and commercial mortgage lenders in \nCanada, providing competitive mortgage products, competitive mortgage interest \nrates, competitive mortgage terms and reliable service through quick turnaround \nservice to its borrowers and broker partners. MMC will underwrite prime-insured \nand conventional residential and commercial mortgages that will be sold to \nmortgage investors, such as banks or trust companies, co-operatives, securities \nfirms and insurance companies. MMC expects to retain the majority of servicing \nfor these mortgages. In February, 2013, MMC received its CMHC (Canada Mortgage \nand Housing Corporation) lenders status as well as completed servicing \nagreements with two major Canadian financial institutions. In April, 2013 MMC \nreceived its Genworth Canada (Genworth Financial Mortgage Insurance Company \nCanada) lenders status. Similar to CMHC (Canada Mort...