Rights Offering Provides Opportunity for Unitholders to Purchase
Additional Units, including from Funds Held In RRSPs.
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, March 11 /CNW/ - Firm Capital Mortgage Investment Trust ("Firm
Capital" or the "Trust") (TSX: FC.UN) announced today that all applicable
securities regulatory clearances have been obtained in order for the Trust to
file a circular for a rights offering (the "Offering") to raise maximum gross
proceeds of $12,772,915. The Offering provides the Trust's Unitholders with
the opportunity to purchase additional Units.
The Trust, having a large retail base of Unitholders, felt that this
would be the ideal time for its existing Unitholders to have the opportunity
to purchase additional Units, in a cost effective, non dilutive manner.
The Trust believes that a Rights offering is ideal at the current time as
it provides an opportunity for its Unitholders, many of whom are believed to
have recently contributed capital to RRSP accounts, to invest these funds in
Each holder of Firm Capital's trust units ("Units") as of the close of
business on March 20, 2008 (the "Record Date") will be issued one right (a
"Right") for each Unit held. Ten Rights, together with $10.10 (the "Exercise
Price"), will entitle a Rightsholder to subscribe for one Unit at or before
4:00 pm (Toronto time) on May 1, 2008 (the "Expiry Time"). The Exercise Price
represents a discount to the simple average of the closing price of the Units
on each of the twenty trading days prior to the announcement of the Offering.
Rights not exercised at or before the Expiry Time will be void and will have
no value. Rightsholders will be entitled to subscribe for additional Units, if
available, at the Exercise Price per Unit (the "Additional Subscription
Privilege"). It is anticipated that, on or about March 25, 2008, a rights
offering circular will be mailed to each holder of Units as of the close of
business on the Record Date. Rights will be evidenced by fully transferable
certificates. The TSX has conditionally approved the posting of the Rights for
trading under the symbol "FC.UN.RT" and, subject to requisite filings, the
Rights will begin trading on March 18, 2008. TD Securities Inc. will act as
dealer manager to form a facilitating dealer group to solicit subscriptions
The net proceeds of this Offering (assuming all Units are subscribed for
and after payment of the estimated expenses of $390,000) will be approximately
In showing their support for the Offering, certain members of the Trust's
management currently intend to directly or indirectly exercise Rights
including, in certain cases, under the Additional Subscription Privilege.
Based on their current intentions, these individuals may, in certain
circumstances (depending on, among other things, the number of Units available
to be acquired under the Additional Subscription Privilege), acquire Units
having a value of up to $1 million in the aggregate, representing
approximately 8% of the total offering.
Certain information included in this news release contains
forward-looking statements within the meaning of applicable securities laws
including, among others, statements concerning the rights offering and
management's commitment to the offering, 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. 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 that the rights offering will not be
successful. Material factors or assumptions that were applied in drawing a
conclusion or making an estimate set out in the forward-looking information
include that Unitholders will subscribe for Units under the rights offering.
Except as required by applicable law, Firm Capital Mortgage Investment Trust
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
For further information:
For further information: Eli Dadouch, President & Chief Executive
Officer, (416) 635-0221, www.firmcapital.com