Establishes At-The-Market Program /NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
TORONTO, Oct. 6, 2021 /CNW/ - MCAN Mortgage Corporation ("MCAN", the "Company" or "we") (TSX: MKP) today announced that it has established an at-the-market equity program (the "ATM Program") that allows the Company to issue up to $30,000,000 (the "Maximum Amount") of common shares ("Common Shares") from treasury to the public from time to time. The ATM Program is being established pursuant to a prospectus supplement (the "Prospectus Supplement") dated the date hereof and filed in each of the provinces and territories of Canada, to the Company's short form base shelf prospectus dated August 20, 2021 (the "Shelf Prospectus", and together with the Prospectus Supplement, the "Prospectus").
Sales of the Common Shares through the ATM Program will be made pursuant and subject to the terms of an equity distribution agreement dated the date hereof (the "Distribution Agreement") with Canaccord Genuity Corp. The volume and timing of distributions under the ATM Program, if any, will be determined at MCAN's sole discretion.
Sales of the Common Shares will be made through "at-the-market distributions" as defined in National Instrument 44-102 - Shelf Distributions. The Common Shares will be distributed under the ATM Program at the market prices prevailing at the time of sale, and therefore prices may vary as between purchasers and over time. The ATM Program will end on the earlier of (i) September 20, 2023, and (ii) the date of distribution of the Maximum Amount, unless terminated prior to such date in accordance with the terms of the Distribution Agreement. The Company plans to use the net proceeds, if any, from the ATM Program to grow the Company's mortgage lending and investing business.
"We view the ATM Program as adding to our capital raising capabilities and one element of our long-term sources of capital that can be used to fund growth" said Karen Weaver, President and Chief Executive Officer. "Under this program, we can incrementally raise capital over a 2-year period to deploy as we grow, at our discretion. MCAN's business growth in the past year has been funded through our DRIP and a successful equity raise through a shareholder rights offering. We believe the establishment of this program provides the Company with an attractive alternative source of incremental capital and greater flexibility to raise equity. As we look forward to funding future growth, we will continue to evolve our capital markets and other funding strategies."
The Prospectus has been filed with the securities commissions in all provinces and territories of Canada. The Prospectus contains important detailed information about the securities being offered. Before you invest, you should read the Prospectus and the other documents the Company has filed for more complete information about the Company and the ATM Program. Copies of the Distribution Agreement and the Prospectus are available under the Company's profile at www.sedar.com.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. Further, this news release does not constitute an offer to sell or the solicitation of an offer to buy in the United States and the Common Shares referred to in this news release may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933 or pursuant to an applicable exemption from the registration requirements under the U.S. Securities Act of 1933 and applicable state securities laws.
https://www.newswire.ca/news-releases/mcan-mortgage-corporation-establishes-at-the-market-program-841209858.html