/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, May 18 /CNW/ - MCAN Mortgage Corporation ("MCAN" or the "Company") announced today that all applicable securities regulatory clearances have been obtained in order for the Company to file a circular for a rights offering (the "Offering") to raise maximum proceeds of $16,379,800. Each holder of MCAN's common shares ("Common Shares") as of the close of business on May 30, 2007 (the "Record Date") will be issued one right (a "Right") for each Common Share held. Eight Rights together with $10.50 (the "Exercise Price") will entitle a Rightsholder to subscribe for one Common Share at or before 4:00 pm (Toronto time) on July 5, 2007 (the "Expiry Time"). Rights not exercised at or before the Expiry Time will be void and will have no value. Rightsholders will be entitled to subscribe for additional Common Shares, if available, at the Exercise Price per share (the "Additional Subscription Privilege"). It is anticipated that, on or about June 1, 2007, a rights offering circular will be mailed to each holder of Common Shares as of the close of business on the Record Date.
MCAN's directors and officers hold directly or indirectly 4,435,861 Common Shares. Certain of the directors and officers have indicated that they intend, subject to market conditions, to exercise directly or indirectly some or all of the Rights they receive under the Offering.
Rights will be evidenced by fully transferable certificates. The TSX has conditionally approved the posting of the Rights for trading under the symbol "MKP.RT" and, subject to requisite filings, the Rights will begin trading on a "when issued" basis on May 28, 2007 until 12:00 pm (Toronto time) on July 5, 2007. MCAN's Common Shares which trade under the symbol "MKP" will commence trading on an "ex-rights" basis at the opening of trading on May 28, 2007.
The net proceeds of this Offering (assuming all Common Shares are subscribed for and after payment of the estimated expenses of $110,000) will be approximately $16,269,800. MCAN intends to use the net proceeds to increase regulatory capital.
This report may contain forward-looking statements, including statements
regarding the business and anticipated financial performance of the
Company. These statements are subject to a number of risks and
uncertainties that may cause actual results to differ materially from
those contemplated by the forward-looking statements. Some of the factors
that could cause such differences include legislative or regulatory
developments, competition, technology change, global market activity,
interest rates, changes in government and economic policy and general
economic conditions in geographic areas where the Company operates.
Reference is made to the risk factors disclosed in the Company's 2007
Annual Information Form, which are incorporated herein by reference.
These and other factors should be considered carefully and undue reliance
should not be placed on the Company's forward-looking statements. Subject
to applicable securities law requirements, we do not undertake to update
any forward-looking statements.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction, including the United States, in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state
or jurisdiction. Any public offering of securities to be made in the
United States can only be made by of means of a prospectus pursuant to an
effective registration statement. MCAN has no intention of filing such a
registration in connection with this rights offering.