$22 Million Bought Deal Offering /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Oct. 12, 2021 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX: FC) is pleased to announce that the Corporation, along with Eli Dadouch, Jonathan Mair and Michael Warner (the “Selling Shareholders”), have entered into an agreement (the “Agreement”) to sell, on a bought deal basis, to a syndicate of underwriters bookrun by TD Securities Inc., National Bank Financial Inc. and CIBC Capital Markets, 1,482,000 common shares of the Corporation (the “Shares”) at a price of $14.85 per Share (the “Issue Price”) for gross proceeds of $22,007,700.
Under the Agreement, 1,012,000 Shares will be issued from treasury by the Corporation for gross proceeds of approximately $15 million (the “Treasury Offering”) and an aggregate of 470,000 Shares will be sold by the Selling Shareholders for aggregate gross proceeds to the Selling Shareholders of approximately $7 million (the “Secondary Offering”). The net proceeds of the Treasury Offering will be used to repay indebtedness and for general corporate purposes. The Corporation will not receive any proceeds from the sale of Shares associated with the Secondary Offering. The Corporation has also granted the underwriters an over-allotment option to purchase up to 222,300 Shares at the Issue Price exercisable, in whole or in part, at any time until 30 days following the closing of the offering. If the over-allotment option is exercised in full, the gross proceeds of the Treasury Offering and Secondary Offering will be approximately $18 million and $7 million, respectively.
The offering is expected to close on or about November 1, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.
A preliminary short-form prospectus will be filed by no later than October 18, 2021 with the securities regulatory authorities in all provinces of Canada. No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, unless an exemption from registration is available. This news release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Corporation in any jurisdiction.
https://www.globenewswire.com/news-release/2021/10/12/2313018/0/en/Firm-Capital-Mortgage-Investment-Corporation-Announces-22-Million-Bought-Deal-Offering.html