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Standard Merchantile Acquisition Corp Cl A T.TZS

Trez Capital Senior Mortgage Investment Corp engages in the mortgage brokerage and investment management business. It focuses on residential and commercial short-term bridge financing. The company offers private and institutional investors opportunities to participate in high yield mortgage investment funds and individually managed portfolios. The company provides the commercial real estate developers with short-term financing on projects. Its portfolio includes residential, retail, and industri


TSX:TZS - Post by User

Comment by ArbProfiton Oct 22, 2013 3:18pm
148 Views
Post# 21838493

RE:RE:CHANGES

RE:RE:CHANGESUnder the current structure, they already have the ability to do normal course issuer bids.  TimberCreek was doing a lot of buying and as soon as they stopped buying MTG after the redemption deadline, the stock fell 50 cents.  These companies do not want to buy back shares, they want to issue more shares.  The new structure will allow them to do this, to grow the fund and to grow fees collected.  The original structure was flawed because you cannot expect to do 3 or 4 share offerings that are not dilutive to NAV.  With the 5.25% broker fee, they would have to trade well above NAV for a couple of years for this to succeed.  It worked for TMC, failed for the rest.
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