Business
MCAN Mortgage Corporation Announces Successful Closing of $15 Million Rights Offering
Stock market symbol TSX: MKP TORONTO , July 13, 2015 /CNW/ - MCAN Mortgage Corpor...
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\nStock market symbol TSX: MKP \n\n\n\nTORONTO, July 13, 2015 /CNW/ - MCAN Mortgage Corporation (\"MCAN\", the \"Company\" or \"we\") today announced the successful closing of the previously announced rights offering (the \"Offering\"), which expired at 4:00 pm on July 10, 2015.  The Offering raised gross proceeds of $15.3 million with 1,406,084 new Common Shares issued. Of the new Common Shares issued, 1.2 million were subscribed for under the initial subscription privilege and 0.2 million (out of total additional subscription requests of 1.46 million) were subscribed for under the additional subscription privilege.  The Offering was therefore oversubscribed by 1.9 times. \n\nAs detailed in the Rights Offering Circular dated June 3, 2015, the exercise price for each new Common Share was $10.90.  The net proceeds of the Offering (after payment of the estimated expenses of $125,000) will be used to fund further growth of the Company's mortgage origination opportunities, primarily in its single family residential product lines.\n\n\"We are pleased with the response from shareholders on the Offering,\" commented William Jandrisits, MCAN's President and Chief Executive Officer.  \"The majority of shareholders not only exercised their rights but also elected under the additional subscription privilege to apply for additional shares.  We were considerably oversubscribed - a great vote of confidence from our investors as to the value of the Company's Common Shares and the potential for its performance in the future.\" \n\n\"The additional capital is important for the growth we need to attain our business objectives,\" Mr. Jandrisits added, \"as it qualifies as both regulatory and income tax capital.  Consistently, our core business activities of raising term deposits and originating and investing in mortgages must be done with prudent leverage and capital requirements in mind.  The successful closing of the Offering provides MCAN with the capital support required to continue its in-house origination growth in single family insured and uninsured mortgages and avail itself to other investment opportunities that fit MCAN's risk appetite and net spread requirements.\" \n\nThe Company would like to thank all shareholders who participated in the Offering, which, as anticipated, included a high level of pa...