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2% Discount to Apply to Purchases of Common Shares from Treasury
Stock market symbol
TORONTO, Nov. 14, 2011 /CNW/ - MCAN Mortgage Corporation ("MCAN" or the
"Company") (TSX:MKP) announced today that the Company's Dividend
Reinvestment Plan (the "Plan") has been amended and restated to, among
other things, provide eligible participants with a 2 per cent (2%)
discount on the purchase of common shares issued from treasury.
Previously, common shares purchased from treasury under the Plan were
issued by MCAN without any discount to the Average Market Price (as
defined in the Plan). The discount is effective immediately pursuant
to the amended terms of the Plan (the "Amended Plan") until further
Under the Amended Plan, the Company continues to reserve the right to
deliver common shares purchased on the open market, in which case the
discount would not apply. A complete copy of the Amended Plan is
available on MCAN's website at www.mcanmortgage.com under the heading "Shareholders".
The Amended Plan has been approved by the Toronto Stock Exchange.
MCAN is a public company listed on the Toronto Stock Exchange under the
symbol MKP and is a reporting issuer in all provinces and territories
in Canada. MCAN also qualifies as a mortgage investment corporation
("MIC") under the Income Tax Act (Canada) (the "Tax Act").
The Company's primary objective is to generate a reliable stream of
income by investing its corporate funds in a portfolio of mortgages
(including single family residential, residential construction,
non-residential construction and commercial loans), as well as other
types of financial investments, loans and real estate investments.
MCAN employs leverage by issuing term deposits eligible for Canada
Deposit Insurance Corporation deposit insurance up to a maximum of five
times capital (on a non-consolidated tax basis) as permitted by the Tax
Act. The term deposits are sourced through a network of independent
financial agents. As a MIC, MCAN is entitled to deduct from income for
tax purposes 100% of dividends, except for capital gains dividends,
which are deducted at 50%. Such dividends are received by the
shareholders as interest income and capital gains dividends,
SOURCE MCAN Mortgage Corporation
For further information:
MCAN Mortgage Corporation
President and Chief Executive Officer
Vice President and Chief Financial Officer