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TorontoAnd December 21, 2021 /CNW/ – MCAN Mortgage Corporation (“MCAN”, “the company” or “we” or “we”) (TSX: MKP) today announced additional information regarding MCAN Insiders’ participation in the company’s rights offering that ended in December 8, 2021 (“View Rights”).
Pursuant to the Basic Subscription Concession under the Right of Subscription, 1,550,423 ordinary shares of the Company (“Ordinary Shares”) were distributed at $16.86 per ordinary share (the “Subscription Price”). Of these ordinary shares, 66,523 were distributed to MCAN Insiders and 1,483,900 were issued to the remaining subscribers under the Basic Subscription Concession.
In accordance with the additional underwriting concession under the Rights Issue, 424,306 ordinary shares were distributed at the subscription price. Of these ordinary shares, 4,307 were distributed to MCAN insiders and 419,999 were issued to the remaining subscribers under the additional underwriting concession.
MCAN is a public company listed on the Toronto Stock Exchange under the symbol MKP and is the reporting authority for all provinces and territories in Canada. MCAN also qualifies as a Mortgage Investment Company (“MIC”) under the Income Tax Act (“MIC”).Canada) (“Tax Law”).
The company’s primary objective is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, including residential property, residential construction, non-residential construction, and commercial loans, as well as other types of securities, loans and real estate investments. MCAN uses leverage by issuing eligible term deposits to secure deposits from Canada Deposit Insurance Corporation obtained through a network of independent financial agents. We manage our capital and asset balances based on the regulations and limits of both tax code and OSFI.
As an MIC, we are entitled to deduct the dividends we pay to shareholders from our taxable income. Ordinary dividends are treated as interest income to shareholders for income tax purposes. We are also able to pay capital gains dividends, which will be treated as capital gains to shareholders for income tax purposes. Dividends paid to foreign investors may be subject to withholding taxes. To meet the MIC criteria, 67% of our non-consolidated tax-measured assets must be held in cash or cash equivalents and residential mortgages.
Wholly owned by MCAN, XMC Mortgage Corporation is the initiator of single-family residential mortgage products across Canada.
SOURCE MCAN Mortgage Corporation
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