TORONTO, May 30, 2013 /CNW/ - MCAN Mortgage Corporation ("MCAN" or the "Company") is pleased to announce that further to its press release dated March 26, 2013, the proposed acquisition of all of the issued and outstanding common shares of Xceed Mortgage Corporation ("Xceed") by MCAN (the "Arrangement") was approved by Xceed shareholders at Xceed's annual and special meeting of shareholders held today. The Arrangement was approved by shareholders with 23,160,779 common shares voting in favour of the Arrangement (representing approximately 99.979% of the voted shares).
An interim order from the Ontario Superior Court of Justice (Commercial List) (the "Court") regarding the Arrangement was obtained on April 19, 2013. A final order from the Court to approve the Arrangement will be sought on June 5, 2013. If the Arrangement is approved by the Court and all of the conditions precedent to the Arrangement are satisfied or waived, including receipt of regulatory approvals, the Company expects that the Arrangement will be completed on or before July 4, 2013.
Further details relating to the Arrangement can be found in the press release issued by the Company on March 26, 2013 and the management proxy circular of Xceed dated April 23, 2013 which is available under Xceed's profile on SEDAR at www.sedar.com.
This press release may contain forward-looking statements, including statements regarding the proposed acquisition by MCAN of all of the issued and outstanding shares of Xceed. 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" or words of a similar nature. These statements are based on current expectations, and are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include legislative or regulatory developments, competition, technology change, global market activity, interest rates, changes in government and economic policy and general economic conditions in geographic areas where MCAN operates. Reference is made to the risk factors disclosed in MCAN's Annual Information Form dated March 26, 2013 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 TSX 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, respectively.
MCAN also participates in the Canada Mortgage Bonds program, and other securitizations of insured mortgages.
SOURCE: MCAN Mortgage Corporation
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MCAN Mortgage Corporation
President and Chief Executive Officer
Vice President and Chief Financial Officer