TORONTO, Oct. 14 /CNW/ - The Board of Directors of HOMEQ Corporation (TSX: HEQ) ("HOMEQ") has approved the payment of a quarterly dividend of $0.07 per share on the outstanding Common Shares of the company, which is equivalent to an annual dividend of $0.28 per share. The dividend is payable to shareholders of record at the close of business on October 23, 2009 and will be paid on October 28, 2009.
The above mentioned dividend on the Common Shares is designated as an "eligible" dividend for the purposes of the Income Tax Act (Canada) and any similar provincial legislation.
HOMEQ recently announced that its subsidiary Canadian Home Income Plan Corporation (CHIP) has received its Letters Patent and Order to Commence as a federally regulated Schedule I bank from the Minister of Finance. Canada's newest chartered bank is called HomEquity Bank (Banque HomEquity in French). In obtaining a bank charter, HomEquity Bank will have immediate access to retail deposits sourced through deposit brokers.
Forward Looking Statements
HOMEQ Corporation from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including the likelihood of HOMEQ's success in developing and expanding its business. These may be included in HOMEQ's and its predecessor's Annual Reports, regulatory filings, reports to shareholders, press releases, presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of HOMEQ. Actual results may differ materially from those expressed or implied by such forward-looking statements. HOMEQ does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time.
About HOMEQ Corporation
HOMEQ earns a return from a portfolio of reverse mortgages originated by its wholly owned subsidiary HomEquity Bank. As of June 30, 2009, the portfolio generating cash returns comprised approximately 7,000 reverse mortgages with an accrued value of $833 million, secured by residential properties across Canada worth approximately $2.3 billion. HomEquity Bank (www.homequitybank.ca) has been the main underwriter of reverse mortgages in Canada since pioneering the concept in 1986.
HOMEQ's shares trade on the Toronto Stock Exchange under the symbol HEQ. Additional information on HOMEQ, including annual and quarterly reports can be viewed at www.homeq.ca.
SOURCE HOMEQ Corporation
For further information: For further information: Steven K. Ranson, President and Chief Executive Officer, (416) 413-4663 or Gary Krikler, Senior Vice President and Chief Financial Officer, (416) 413-4679