/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Nov. 14, 2018 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”)
(TSX: FC) is pleased to announce that it has entered into an agreement to sell, on a bought deal basis, to a syndicate of
underwriters bookrun by TD Securities Inc., CIBC Capital Markets and Scotiabank, $25,000,000 aggregate principal amount of 5.50%
convertible unsecured subordinated debentures due January 31, 2026 (the “Debentures”) at a price of $1,000 per Debenture. The
Corporation has granted the underwriters an over-allotment option to purchase up to $3,750,000 additional aggregate principal
amount of Debentures, exercisable, in whole or in part, at any time until 30 days following the closing of the offering. If the
over-allotment option is exercised in full, the gross proceeds of the offering will be $28,750,000.
The net proceeds of the offering will be used for debt repayment, new investments and for general corporate
purposes.
The Debentures will bear interest at a rate of 5.50% per annum, payable semi-annually in arrears on the last day
of June and December in each year commencing on June 30, 2019, and will mature on January 31, 2026 (the “Maturity Date”). The
Debentures will be convertible at the holder’s option into common shares of the Corporation (the “Shares”) at any time prior to the
earlier of the Maturity Date and the date fixed for redemption at a conversion price of $14.60 per Share (the “Conversion Price”),
subject to adjustment in certain circumstances.
The Debentures will be issued pursuant to a prospectus supplement that will be filed with the securities
regulatory authorities in all provinces of Canada under the Corporation's base shelf prospectus dated July 17, 2017 and may also be
offered by way of private placement into the United States pursuant to Rule 144A. The offering is scheduled to close on or about
November 23, 2018, and is subject to regulatory approval.
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.
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 year are outlined in the audited 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. 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 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 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.
For further information, please contact:
Firm Capital Mortgage Investment Corporation
Eli Dadouch
President & Chief Executive Officer
(416) 635-0221
Boutique Mortgage Lenders®
