Business
MCAN Mortgage Corporation announced MCAP recapitalization and partial sale of MCAP Commercial LP interest
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About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n THE UNITED STATES/\n\n\nTORONTO, Nov. 27, 2013 /CNW/ - MCAN Mortgage Corporation (\"MCAN\" or the\n \"Company\") announced today that the partners in MCAP Commercial LP\n (\"MCAP\"), other than MCAN, have elected to invest an additional $100\n million in MCAP (the \"Capital Investment\") to allow for additional\n growth and expansion of operations.  The injection of additional\n capital will dilute MCAN's investment to 16.5% (before giving effect to\n the Sale Transaction discussed below).\n\n\nIn conjunction with the Capital Investment, MCAN also announced the\n entering into of an agreement to sell approximately 1.7% of the equity\n it holds in MCAP to another partner in MCAP for approximately $5.7\n million (the \"Sale Transaction\"), approximately $2.8 million to be\n received immediately and approximately $2.9 million anticipated to be\n received in January, 2014.  The Sale Transaction results in the\n reduction of MCAN's ownership of MCAP to 14.8% after giving effect to\n the Capital Investment (reduced from 23.4% as reported as at the end of\n the third quarter, 2013).\n\n\nThe issue price of the units issued pursuant to the Capital Investment\n and the sale price of the units pursuant to the Sale Transaction is\n approximately 33% above the carrying value of the units on MCAN's\n Consolidated Balance sheet as at the end of the third quarter, 2013.\n\n\nThe combination of the additional investment and MCAN's sale noted above\n will result in both a dilution gain and gain on sale that will be\n announced as part of the fourth quarter results from operations.  The\n announcement of the fourth quarter results are expected to be finalized\n and announced in February 2014.\n\n\nMr. Jandrisits, President & CEO commented, \"while the additional\n investment by our partners in MCAP enables additional growth in both\n operations and future projected income, this transaction also enables\n MCAN to realize on a portion of its investment in MCAP. \"\n\n\nForward-Looking Information \n\n\nThis press release may contain forward-looking statements, including\n statements regarding the business and anticipated financial performance\n of MCAN and MCAP. These forward-looking statements can generally be\n identified as such because of the cont...