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TORONTO, Jan. 7, 2015 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (TZS – TSX) ("Trez" or "the Corporation") announced today that the Toronto Stock Exchange ("TSX") has accepted the Corporation's notice of intention to make a normal course issuer bid. In the opinion of the board of directors of Trez, its Class A shares ("Shares") have recently traded in a price range that does not reflect the underlying value of the Corporation and its strong financial position. Accordingly, depending upon future price movements and other factors, Trez believes that its outstanding Shares represent an attractive investment and a desirable use of a portion of its funds. Trez's available capital allows for the implementation of the bid without adversely affecting other growth opportunities.
As of January 6, 2015, the Corporation had 7,577,988 Shares outstanding. The Corporation may, during the 12 month period commencing January 12, 2015 and ending January 11, 2016, purchase on the TSX up to 754,406 Shares, being 10% of the public float. The average daily trading volume of the Corporation's Shares over the last six completed calendar months was 11,769. Accordingly, under TSX rules and policies, the Corporation is entitled on any trading day to purchase up to 2,942 Shares. Once a week, in excess of the daily 2,942 Share repurchase limit, the Corporation may also make one block purchase under the block purchase exemption in accordance with the rules of TSX. All Shares purchased by the Corporation will be cancelled.
The prices that Trez will pay for any of the Shares purchased will be the market price of the Shares at the time of acquisition, determined in accordance with the rules of the TSX.
To the knowledge of Trez, no director, senior officer or insider currently intends to sell any Shares under this bid. There are no agreements in place to sell securities under the normal course issuer bid.
About the Company
Trez's objective is to acquire and maintain a diversified portfolio of first mortgages in Canada that preserves capital and generates attractive returns in order to pay monthly distributions to its shareholders. The Corporation accomplishes its investment objectives through prudent investments in first mortgages to qualified real estate investors and developers, focusing primarily on short-term bridge financing needs not currently serviced by traditional real estate lenders. Trez Capital Fund Management Limited Partnership is the manager of and portfolio advisor to the Corporation.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Corporation's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com. Readers are cautioned not to rely on forward-looking statements. Except as required under continuous disclosure obligations, the Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Trez Capital Senior Mortgage Investment Corporation
For further information: Karyn Phuong, Vice President, Investor Relations, Trez Capital Senior Mortgage Investment Corporation, Tel: (647) 788-1788, E-mail: KarynP@trezcapital.com