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Bullboard - Stock Discussion Forum MCAN Mortgage Corp T.MKP

Alternate Symbol(s):  MAMTF

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.... see more

TSX:MKP - Post Discussion

MCAN Mortgage Corp > Another rights offering!
View:
Post by JayBanks on Nov 09, 2021 11:56pm

Another rights offering!

I like these things better than a company doing private placements, secondaries, DRIPS and other share issueances as they let current shareholders choose not to be diluted and let us help fund our future returns!

This one seems more favourable than the last one...
-14-1 is better than 20-1
-16.86 is only 1.21 more than 15.65 or 7.7% more, we have gained 6.59% between last closing and this announcement on share price + 4.35% gain on payouts for an almost 11% gain, so theoretically this one is cheaper to exercise. (That said I once again expect share price to retreat a little for the next few weeks into the closing and then a little beyond, it happened last time but not as far as I predicted)

We will have to see what the price is closer to the rights opening/closing date to predict a good rights purchase price, currently 14.7 cents seems the value. Other than a couple days at the start of the last rights trading, they were overpriced to value. (The value also changes a little bit person to person depending on your trading fees and how many you plan to exercise)
@ 18.50 = 11.7
@ 18.25 = 9.9
@ 18.00 = 8.1
@ 17.75 = 6.4
@ 17.50 = 4.6
@ 17.25 = 2.8
@ 17.00 = 1
 

Personally I'll exercise to get 91 shares + overalotment... depending on the rights pricing I may add several more.. there goes my plans of rebalancing my portfolio 'naturally' lol

Comment by Lawyerup on Nov 10, 2021 7:15pm
Yup, definitely a good deal.  I will take advantage of the offering.  Cheers Charlie.
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