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Firm Capital Mortgage Investment Corporation Closes $25,000,000 Bought Deal Financing

T.FC

Canada NewsWire

TSX Symbol: FC

/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Nov. 23, 2018 /CNW/ - Firm Capital Mortgage Investment Corporation (the "Corporation") (TSX: FC) is pleased to announce that it has closed its previously announced bought deal offering (the "Offering") of $25,000,000 aggregate principal amount of 5.50% convertible unsecured subordinated debentures of the Corporation (the "Debentures") due January 31, 2026 at a price of $1,000 per Debenture. Each Debenture is convertible into common shares of the Corporation at the option of the holder at a conversion price of $14.60 per common share (or approximately 68.4932 common shares per $1,000 principal amount of Debentures). The Debentures are listed and posted for trading on the Toronto Stock Exchange under the symbol FC.DB.J.  

The Offering was underwritten by a syndicate of underwriters that was co-led by TD Securities Inc., CIBC Capital Markets and Scotiabank, and which included National Bank Financial Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., Industrial Alliance Securities Inc., Echelon Wealth Partners Inc. and GMP Securities L.P. (collectively, the "Underwriters"). The Corporation has also granted the Underwriters an over-allotment option, exercisable in whole or in part, at any time up to 30 days after the closing of the Offering to purchase up to an additional $3,750,000 aggregate principal amount of Debentures.

The net proceeds of the Offering will be used for debt repayment, new investments and for general corporate purposes.

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 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 short form base shelf prospectus dated July 17, 2017, the prospectus supplement thereto dated November 16, 2018 and the Corporation's annual information form for the year ended December 31, 2017, under "Risk Factors" (copies of which can be obtained at www.sedar.com). Those risks and uncertainties include, among others, risks associated with the ability of the Corporation to allocate the net proceeds of the Offering as stated above, 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

View original content: http://www.newswire.ca/en/releases/archive/November2018/23/c3123.html



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