TORONTO, Aug. 7 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a Canadian
provider of insured mortgages, today announced that it will hold a Special
Meeting of shareholders on September 10, 2009.
At the meeting, shareholders will be asked to approve continuance of the
company as a federally regulated Schedule 1 bank under the Bank Act (Canada),
to change its name to Xceed Bank and Banque Xceed, and to confirm amendments
to the by-laws of the company. Continuance as a Schedule 1 bank also is
subject to the approval of the Office of the Superintendent of Financial
Institutions (OSFI). The change in Xceed's name will take place subject to
approval being received from OSFI to continue as a bank.
"As we previously have stated, Xceed determined that it is advantageous
for us to become a Schedule 1 bank as it will provide us with access to retail
deposits as an additional source for obtaining funds that we can use for our
mortgage originations activities," said, Ivan Wahl, Chairman and Chief
"Retail deposits are a stable, cost-effective means to warehouse insured
residential mortgages prior to our pooling them for sale to the Canada
Mortgage Bond program. Retail deposits also are a reliable and permanent way
to fund conventional residential mortgages to be held on Xceed's balance sheet
until maturity. Continuation as a bank also will assist Xceed in gaining
approval from the Canada Housing and Mortgage Corporation to pool and sell
mortgages directly to the Canada Mortgage Bond program without the need for us
to rely on an intermediary and pay the costs associated with that," Mr. Wahl
"As a bank, Xceed will be able to resume selling financial products to
the niche market that is not well-served by traditional lenders and we will be
able to compete on a level playing field with existing small banks and trust
companies," he continued. Xceed also will have more flexibility to eventually
enter into the marketplace for other related financial products, such as
"As a federally regulated entity, Xceed expects to have access to a more
stable funding platform and to benefit from the lower risk accorded by
investors to investments in Canadian banks. This will result in Xceed becoming
exposed to a wider range of potential investors and other capital providers,
which will enable us to continue to build our capital base to support future
growth. This should increase the value of our business for our shareholders,"
Mr. Wahl added.
The proposed continuance of the company as a bank requires approval by
two-thirds of the votes cast by Xceed's shareholders present or represented by
proxy at the special meeting, as well as the obtaining of all necessary
regulatory and other approvals.
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of
insured residential mortgages that it originates in Canada. The company has
approximately $2.0 billion of mortgages and other assets under administration.
Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To find
out more about Xceed Mortgage Corporation, visit our website at
Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com.
For further information:
For further information: Investor and Media Relations: Richard Wertheim
- Wertheim + Company Inc. - (416) 594-1600 (bus.) or (416) 518-8479 (cell) -