MCAN Mortgage Corp T.MKP

Alternate Symbol(s): MAMTF

Consumer Cyclical Advertising Agencies

MCAN Mortgage Corporation is a Canada-based loan company and mortgage investment corporation. Its objective is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, including residential mortgages, residential construction, non-residential construction and commercial loans, as well as other types of securities, loans, and real estate investments. Its lines of business include three divisions: MCAN Home, MCAN Capital and MCAN Wealth. MCAN Home is its residential mortgage lender that partners with accredited mortgage professionals to offer both insured and uninsured mortgage solutions across Canada. MCAN Capital focuses on financing and investment opportunities in the construction and commercial loan markets, real estate investment trusts (REITs), and private investment funds focused on lending to and developing Canadian communities. MCAN Wealth offers investors Canada Deposit Insurance Corporation (CDIC) insured investment solutions.

TSX:MKP - Post by User

MCAN Mortgage Corp > Preliminary Base Shelf Prospectus for $400 M. in Securities

<< Previous

Bullboard Posts

Next >>

Comment by KC8on Aug 30, 2021 12:08am

153 Views

Post# 33780426

RE:RE:RE:Preliminary Base Shelf Prospectus for $400 M. in Securities

Bibizbuz wrote: Not sure exactly why they are doing this, but here is my take. As a MIC they are required to pay out most of their income as dividends. Because of the current financial regulations, banks and other financial institutions like Mcan have been instructed not to increase dividends during the pandemic.

So Mcan can either pay out a 'special' dividend like they did at year end and provide shareholders an opportunity to buy new shares at a lower price than market value or they have to figure out alternate ways of dealing with the extra income that's not paid out as dividend.

We'll see how this offering plays out as I see it as dilutive if they don't increase the business significantly.

I think you have summed up this situation quite precisely.