TORONTO, Sept. 11 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a
Canadian provider of insured mortgages, today announced that its shareholders
have voted to approve continuance of the company as a federally regulated
Schedule 1 bank under the Bank Act (Canada).
At a Special Meeting held here yesterday, the shareholders also approved
a change in the company's name to Xceed Bank and Banque Xceed, and to confirm
the amendments needed to the by-laws of the company. The continuance of Xceed
as a bank and changes to the company's name and bylaws are subject to
receiving the approval from the Office of the Superintendent of Financial
Institutions (OSFI) of the company's application to be granted Schedule 1 bank
"As a bank, Xceed will benefit by increasing our channels for obtaining
additional funds that we can use for underwriting new mortgages and renewing
existing ones in our nearly $2 billion portfolio of assets under management,"
said Ivan Wahl, Chairman and Chief Executive Officer.
"We will be able to attract retail deposits, by issuing guaranteed
investment certificates, at rates that are competitive in the marketplace
while providing a reasonable cost for Xceed. It should improve the spreads
between our sourcing funds and underwriting activities. Continuation as a bank
also will assist us in gaining approval from the Canada Housing and Mortgage
Corporation to pool and sell mortgages directly to the Canada Mortgage Bond
program without the need for us to rely on a conduit and having to pay the
costs associated with that.
"As a bank, we expect to be able to resume selling financial products to
the niche market that is not well-served by traditional lenders. We will be
able to compete on a level playing field with other existing small banks and
trust companies. We will have more flexibility to eventually enter into the
marketplace for other related financial products," Mr. Wahl said.
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of
insured residential mortgages that it originates in Canada. The company has
approximately $2.0 billion of mortgages and other assets under administration.
Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To find
out more about Xceed Mortgage Corporation, visit our website at
Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com.
For further information:
For further information: Investor and Media Relations: Richard Wertheim,
Wertheim + Company Inc., (416) 594-1600 (bus.) or (416) 518-8479 (cell),