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TORONTO, July 8, 2013 /CNW/ - Further to the joint press release issued by MCAN Mortgage Corporation ("MCAN" or the "Company") and Xceed Mortgage Corporation ("Xceed") on July 4, 2013 announcing the closing of the acquisition by MCAN of each of the issued and outstanding common shares of Xceed ("Xceed Shares") pursuant to a court-approved plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement"), MCAN announced today the final pro-rated consideration to be paid to Xceed shareholders who elected, or were deemed to have elected, to receive cash consideration for their Xceed Shares.
Pursuant to the Arrangement, Xceed shareholders were entitled to elect to receive either Cdn$1.75 or 0.118 of a common share of MCAN ("MCAN Shares") for each Xceed Share held, subject to pro-rationing as necessary to effect the maximum available cash consideration. After giving effect to pro-rationing in accordance with the terms of the Arrangement, Xceed shareholders who elected, or were deemed to have elected, to receive cash consideration will receive, for each Xceed Share held, cash equal to approximately Cdn$1.13 and approximately 0.042 of an MCAN Share. The aggregate cash consideration paid by MCAN is $30,292,062.50 and the aggregate number of MCAN Shares issued to Xceed shareholders who elected, or were deemed to have elected, to receive cash consideration is 1,113,713. An additional 418,190 MCAN Shares were issued to Xceed shareholders who elected, or were deemed to have elected, to receive share consideration.
This press release may contain forward-looking statements, including statements regarding the 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
For further information:
MCAN Mortgage Corporation
President and Chief Executive Officer
Vice President and Chief Financial Officer