Firm Capital Mortgage Investment Corporation Closes Exercise of Underwriters' Over-Allotment Option

/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, April 26, 2016 /CNW/ - Firm Capital Mortgage Investment Corporation (the "Corporation") (TSX: FC) is pleased to announce that it has issued an additional 256,500 common shares (the "Offered Shares") at a price of $12.90 per Offered Share pursuant to the over-allotment option granted to the underwriters in connection with the Corporation's previously announced bought deal prospectus offering of 1,710,000 common shares of the Corporation. After the exercise and closing of the over-allotment option, the Corporation has raised aggregate gross proceeds of $25,367,850 in connection with the offering. The Offered Shares were listed and posted for trading on the TSX at the opening of trading today.

The offering was underwritten by a syndicate of underwriters led by TD Securities Inc. and which included RBC Dominion Securities Inc., CIBC World Markets Inc., National Bank Financial Inc., Canaccord Genuity Corp., GMP Securities L.P., Desjardins Securities Inc. and Dundee Securities Ltd.

The net proceeds of the offering will be used to repay a portion of the Corporation's indebtedness and for general corporate purposes.

This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities will not be and have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

About Firm Capital Mortgage Investment Corporation

The Corporation, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments. The Corporation's investment objective is the preservation of shareholders' equity, while providing shareholders with a stable stream of monthly dividends from investments. The Corporation achieves its investment objectives through investments in selected niche markets that are under-serviced by large lending institutions. Lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to shareholders. The Corporation is a Mortgage Investment Corporation (MIC) as defined in the Income Tax Act (Canada). Accordingly, the Corporation is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the Corporation had been made directly by the shareholder. Full reports of the financial results of the Corporation for the year are outlined in the audited financial statements and the related management discussion and analysis of the Corporation, available on SEDAR at www.sedar.com. In addition, supplemental information is available on the Corporation's website at www.firmcapital.com.

Where Mortgage Deals Get Done®
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Cautionary Note Regarding Forward Looking Information

This press release contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our strategies to achieve those objectives, our performance, our mortgage portfolio and our distributions, as well as statements with respect to management's beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in the Corporation's Annual Information Form under "Risk Factors" (a copy of which can be obtained at www.sedar.com). Those risks and uncertainties include, among others, risks associated with mortgage lending, dependence on the Corporation's manager and mortgage banker, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters, shareholder liability and the introduction of new tax rules. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include, among others, adequate mortgage investment opportunities being presented to the Corporation and adequate bank indebtedness and bank loans being available to the Corporation. Although the forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results and performance will be consistent with these forward-looking statements. 

All forward-looking statements in this press release are qualified by these cautionary statements.  Except as required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Firm Capital Mortgage Investment Corporation

For further information: Firm Capital Mortgage Investment Corporation, Eli Dadouch, President & Chief Executive Officer, (416) 635-0221

RELATED LINKS
www.firmcapital.com

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