TORONTO, Nov. 29, 2013 /CNW/ - Trez Capital Senior Mortgage Investment
Corporation (TSX: TZS) (the "Corporation" or "Trez") has received
strong shareholder approval, at a special meeting of shareholders
convened earlier today, for the Corporation's transition (the
"Transition") from the Canadian securities regulatory regime for
investment funds to the public company regime.
"Our shareholders' support of the Transition is an important step for
us," said Michael J.R. Nisker, President and CEO of the Corporation.
"It will allow Trez to continue to provide them with a strong source of
monthly income, while operating in a more stable corporate environment
with greater growth potential."
The Transition is expected to provide the Corporation and its
shareholders with a number of benefits, including:
continuing the Corporation's ability to operate in accordance with its
existing investment objectives and strategies;
eliminating the trailer fee paid on Class A Shares which will likely
result in more income generated by the Corporation being available for
distribution to shareholders;
Class A shares receive voting rights at an Annual Meeting of
increased frequency of financial reporting;
the potential for research analyst coverage; and
increased stability of capital resulting from the elimination of the
monthly and annual redemption feature.
To implement the approved Transition, the Corporation will file Articles
of Amendment, effective as of November 30, 2013 (the "Effective Date").
The Corporation will continue to qualify as a mortgage investment
corporation ("MIC") under the Income Tax Act (Canada) and its shares will continue to be qualified investments for
registered plans. As such, distributions will remain characterized as
investment income, as they were prior to the Transition. Commencing
from the Effective Date, the Corporation will be subject to, and will
file all continuous disclosure materials in compliance with the
requirements for public companies that are not investment funds.
As part of the Transition, shareholders will be provided with a final
opportunity to submit a request to redeem their Class A shares on
December 31, 2013 at their net asset value per share up until December
13, 2013. The number of Class A shares which can be redeemed on
December 31, 2013 is limited to 15% of the total number currently
Trez Capital Fund Management Limited Partnership will continue as the
manager of the Corporation and the board of directors of the
Corporation remains unchanged. Additional details of the Transition can
be found in the Management Information Circular of the Corporation that
was filed on SEDAR on November 7, 2013, and also available at www.trezcapital.com.
SOURCE: Trez Capital Senior Mortgage Investment Corporation
For further information:
Michael J.R. Nisker
President & Chief Executive Officer
Trez Capital Mortgage Investment Corporation
Tel: (416) 350-1299
Vice President, Investor Relations
Tel: (647) 788-1788