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TORONTO, July 23, 2012 /CNW/ - In connection with the announcement on
July 10, 2012 of a rights offering (the "Offering") and for the
purposes of allowing shareholders to make an informed decision about
the Offering, MCAN Mortgage Corporation ("MCAN" or the "Company")
provides the following guidance in respect of its financial results for
the second quarter ended June 30, 2012:
Earnings per share for the quarter are expected to be in the range of
$0.32 - $0.42 ($0.58 - $0.68 for the six months ended June 30, 2012).
Corporate assets are expected to be in the range of $890 million to $900
million as at June 30, 2012.
Remaining asset capacity is approximately $30 million as at June 30,
These figures are based on actual results for April and May with an
estimate for June results and actual results for the quarter are
expected to be released on or about August 9, 2012.
Recently announced regulatory changes that impact the Canadian mortgage
market and potential interpretations being sought under existing
guidance in respect of the capital treatment of securitization of
mortgages, may impact the extent of MCAN's participation in the
securitization of mortgages and its earnings from that business. The
Company will continue to identify and assess alternatives and
opportunities in this line of business in order to maximize returns for
Although this information is intended to allow MCAN shareholders to make
an informed decision about the Offering, undue reliance should not be
placed on such information and such information may not be appropriate
for other purposes.
This press release may contain forward-looking statements, including
statements regarding the business and anticipated financial performance
of MCAN. These forward-looking statements can generally be identified
as such because of the context of the statements and often include
words such as MCAN "believes", "anticipates", "expects", "plans",
"estimates", "guidance" or words of a similar nature. These statements
are based on current expectations, on assumptions that June results in
MCAN's core mortgage portfolio will be consistent with the results in
April and May. However, some variability may occur in the results for
MCAP Commercial LP ("MCLP") as they fully integrate the results of MCAP
Service Corporation ("MSC") and are required to convert MSC results to
International Financial Reporting Standards for consolidation with
MCLP. Reference is made to the risk factors disclosed in MCAN's 2012
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 MCAN's forward-looking statements.
Subject to applicable securities law requirements, MCAN does not
undertake to update any forward-looking statements.
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").
MCAN'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 ("CDIC") 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,
MCAN also participates in the Canada Mortgage Bonds program, and other
securitizations of insured mortgages.
SOURCE: MCAN Mortgage Corporation
For further information:
MCAN Mortgage Corporation
President and Chief Executive Officer
Vice President and Chief Financial Officer