/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TSX Symbol: FC
TORONTO, Aug. 14, 2017 /CNW/ - Firm Capital Mortgage Investment
Corporation (the "Corporation") (TSX: FC) is pleased to announce that it intends to redeem early its outstanding
$31,443,000 aggregate principal amount of 5.75% convertible unsecured subordinated debentures of
the Corporation (the "Debentures") due October 31, 2017, effective September 20, 2017 (the "Redemption Date"). The Debentures, which are listed and posted for trading on
the Toronto Stock Exchange under the symbol FC.DB.A, will cease trading subsequent to the Redemption Date.
A redemption notice has been delivered to the Debenture trustee and provides for the redemption with freely tradeable common
shares in the capital of the Corporation (the "Shares") of the aggregate principal amount of $31,443,000 and all accrued and unpaid interest to but excluding the Redemption Date.
THE CORPORATION HAS DETERMINED TO PERMIT HOLDERS OF DEBENTURES TO ELECT TO RECEIVE CASH IN LIEU OF SHARES IN CONNECTION
WITH SUCH REDEMPTION, PROVIDED THAT HOLDERS MAKE SUCH ELECTION THROUGH THEIR RESPECTIVE BROKERS ON OR PRIOR TO 5:00 P.M. (EDT) ON AUGUST 30, 2017. If a holder of Debentures does not make
such an election prior to the election deadline, the Corporation will, in accordance with the trust indenture governing the terms
of the Debentures (the "Indenture"), satisfy the aggregate redemption price by issuing and delivering that number of
freely tradeable Shares obtained by dividing the aggregate redemption price by 95% of the weighted average market price per Share
for the preceding 20 trading days ending on the fifth trading day preceding the Redemption Date (being September 13, 2017) (the "Current Market Price"), as set out in the Indenture. Assuming a Current Market
Price of $13.15, being the closing price of the Shares on the date hereof, the annual yield on the
Shares based on dividends made by the Corporation in 2016 would have been 7.35%. Holders of Debentures should contact their
broker in order to elect for cash payment in respect of the redemption.
About the Corporation
Where Mortgage Deals Get Done®
The Corporation, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and
commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments.
The Corporation's investment objective is the preservation of Shareholders' equity, while providing Shareholders with a stable
stream of monthly dividends from investments. The Corporation achieves its investment objectives through investments in selected
niche markets that are underserviced by large lending institutions. Lending activities to date continue to develop a diversified
mortgage portfolio, producing a stable return to Shareholders. Full reports of the financial results of the Corporation for the
three month period ended March 31, 2017 are outlined in the unaudited financial statements and the
related management's discussion and analysis of Firm Capital, available on the SEDAR website at www.sedar.com. In addition, supplemental information is available on Firm Capital's
website at www.firmcapital.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws including, among
others, statements concerning our objectives, our strategies to achieve those objectives, our performance, our mortgage portfolio
and our distributions, as well as statements with respect to management's beliefs, estimates and intentions, and similar
statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical
facts, including the proposed redemption of the Debentures or any dividends announced and paid by the Corporation in respect of
Shares. Although the Corporation intends to make distributions of its available cash to shareholders in accordance with its
dividend policy, these cash distributions are not assured. The actual amount distributed to shareholders will depend on numerous
factors, including but not limited to the Corporation's financial performance, debt covenants and obligations, working capital
requirements, composition of the Corporation's mortgage portfolio, availability of mortgage investments and fluctuations in
interest rates that impact the aggregate yield on mortgage investments. The market value of the Shares may deteriorate if the
Corporation is unable to meet its cash distribution targets in the future, and that deterioration may be material.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective",
"may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions
suggesting future outcomes or events. Such forward-looking statements include the Corporation's proposed use of the net proceeds
of the Offering, and reflect management's current beliefs and are based on information currently available to management.
These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to
risks and uncertainties, including those described in the Corporation's annual information form for the year ended December 31, 2016 under "Risk Factors" (a copy of which can be obtained at www.sedar.com). Those risks and uncertainties include, among others, risks associated with mortgage lending,
dependence on the Corporation's manager and mortgage banker, competition for mortgage lending, real estate values, interest rate
fluctuations, environmental matters, shareholder liability and the introduction of new tax rules. Material factors or assumptions
that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include, among others,
adequate mortgage investment opportunities are presented to the Corporation; and adequate bank indebtedness and bank loans are
available to the Corporation. Although the forward-looking information continued in this new release is based upon what
management believes are reasonable assumptions, there can be no assurance that actual results and performance will be consistent
with these forward-looking statements.
All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by
applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of
any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being
offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be
offered, sold or delivered, directly or indirectly within 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, except in limited
circumstances.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press
release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the
securities referred to herein in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state or jurisdiction.
Boutique Mortgage Lenders®
SOURCE Firm Capital Mortgage Investment Corporation
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