Business
MCAN Mortgage Corporation announces rights offering
MCAN Mortgage Corporation announces rights offering.
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n\n\nTHE UNITED STATES/\n\n\nTORONTO, May 18 /CNW/ - MCAN Mortgage Corporation ("MCAN" or the\n"Company") announced today that all applicable securities regulatory\nclearances have been obtained in order for the Company to file a circular for\na rights offering (the "Offering") to raise maximum proceeds of $16,379,800.\nEach holder of MCAN's common shares ("Common Shares") as of the close of\nbusiness on May 30, 2007 (the "Record Date") will be issued one right (a\n"Right") for each Common Share held. Eight Rights together with $10.50 (the\n"Exercise Price") will entitle a Rightsholder to subscribe for one Common\nShare at or before 4:00 pm (Toronto time) on July 5, 2007 (the "Expiry Time").\nRights not exercised at or before the Expiry Time will be void and will have\nno value. Rightsholders will be entitled to subscribe for additional Common\nShares, if available, at the Exercise Price per share (the "Additional\nSubscription Privilege"). It is anticipated that, on or about June 1, 2007, a\nrights offering circular will be mailed to each holder of Common Shares as of\nthe close of business on the Record Date.\n\n\nMCAN's directors and officers hold directly or indirectly 4,435,861\nCommon Shares. Certain of the directors and officers have indicated that they\nintend, subject to market conditions, to exercise directly or indirectly some\nor all of the Rights they receive under the Offering.\n\n\nRights will be evidenced by fully transferable certificates. The TSX has\nconditionally approved the posting of the Rights for trading under the symbol\n"MKP.RT" and, subject to requisite filings, the Rights will begin trading on a\n"when issued" basis on May 28, 2007 until 12:00 pm (Toronto time) on July 5,\n2007. MCAN's Common Shares which trade under the symbol "MKP" will commence\ntrading on an "ex-rights" basis at the opening of trading on May 28, 2007.\n\n\nThe net proceeds of this Offering (assuming all Common Shares are\nsubscribed for and after payment of the estimated expenses of $110,000) will\nbe approximately $16,269,800. MCAN intends to use the net proceeds to increase\nregulatory capital.\n\n\nThis report may contai...