Firm Capital Mortgage Investment Corporation Announces Normal Course Issuer Bid

TORONTO, Ontario, July 13, 2022 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX: FC, FC.DB.F, FC.DB.G, FC.DB.H, FC.DB.I, FC.DB.J, FC.DB.K and FC.DB.L) announced today that the Toronto Stock Exchange (the “TSX”) has accepted a notice filed by the Corporation of its intention to make a normal course issuer bid (the “NCIB”) with respect to its outstanding common shares (the “Common Shares”), 5.30% convertible unsecured subordinated debentures due August 31, 2024 (the “2024 Debentures”), 5.40% convertible unsecured subordinated debentures due June 30, 2025 (the “2025 Debentures”), 5.50% convertible unsecured subordinated debentures due January 31, 2026 (the “2026 Debentures”), 5.00% convertible unsecured subordinated debentures due September 30, 2028 (the “2028 Debentures”) and 5.00% convertible unsecured subordinated debentures due March 31, 2029 (the “2029 Debentures”, and together with the 2024 Debentures, 2025 Debentures, 2026 Debentures and 2028 Debentures, the “Debentures”).

The notice provides that the Corporation may, during the 12 month period commencing July 18, 2022 and ending no later than July 17, 2023, purchase through the facilities of the TSX and/or alternative Canadian Trading Systems up to: (i) 3,359,442 Common Shares in total, being 10% of the “public float” of Common Shares as of July 5, 2022; (ii) $2,621,831 aggregate principal amount of 2024 Debentures in total, being 10% of the “public float” of 2024 Debentures as of July 5, 2022; (iii) $2,478,894 aggregate principal amount of 2025 Debentures in total, being 10% of the “public float” of 2025 Debentures as of July 5, 2022; (iv) $2,462,188 aggregate principal amount of 2026 Debentures in total, being 10% of the “public float” of 2026 Debentures as of July 5, 2022; (v) $4,600,000 aggregate principal amount of 2028 Debentures in total, being 10% of the “public float” of 2028 Debentures as of July 5, 2022; and (vi) $4,369,850 aggregate principal amount of 2029 Debentures in total, being 10% of the “public float” of 2029 Debentures as of July 5, 2022.

The price which the Corporation will pay for any Common Shares or Debentures will be the market price at the time of acquisition. During the period of this NCIB, the Corporation may make purchases under the NCIB by means of open market transactions. The actual number of Common Shares and Debentures which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by senior management of the Corporation. The average daily trading volume from January 1 to June 30, 2022 (except for the 2029 Debentures, which is from January 27 to June 30, 2022) was 47,866 Common Shares, $16,480 aggregate principal amount of 2024 Debentures, $8,536 aggregate principal amount of 2025 Debentures, $6,600 aggregate principal amount of 2026 Debentures, $25,536 aggregate principal amount of 2028 Debentures and $97,175 aggregate principal amount of 2029 Debentures. Daily purchases under the NCIB will be limited to 11,966 Common Shares, $4,120 aggregate principal amount of 2024 Debentures, $2,134 aggregate principal amount of 2025 Debentures, $1,650 aggregate principal amount of 2026 Debentures, $6,384 aggregate principal amount of 2028 Debentures and $24,293 aggregate principal amount of 2029 Debentures, other than block purchases. All Common Share and Debentures purchased by the Corporation under the NCIB will be cancelled.

As of July 5, 2022, there were: (i) 34,483,717 Common Shares outstanding, and the public float was 33,594,424 Common Shares; (ii) $26,500,000 aggregate principal amount of 2024 Debentures outstanding, and the public float was $26,218,310 aggregate principal amount of 2024 Debentures; (iii) $25,000,000 aggregate principal amount of 2025 Debentures outstanding, and the public float was $24,788,940 aggregate principal amount of 2025 Debentures; (iv) $24,983,000 aggregate principal amount of 2026 Debentures outstanding, and the public float was $24,621,884 aggregate principal amount of 2026 Debentures; (v) $46,000,000 aggregate principal amount of 2028 Debentures outstanding, and the public float was $46,000,000 aggregate principal amount of 2028 Debentures; and (vi) $43,700,000 aggregate principal amount of 2029 Debentures outstanding, and the public float was $43,698,500 aggregate principal amount of 2029 Debentures.

The Corporation may purchase its Common Shares and Debentures, from time to time, if it believes that the market price of its Common Shares and/or Debentures is attractive and that the purchase would be an appropriate use of corporate funds and in the best interests of the Corporation.

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 under-serviced by large lending institutions. Lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to shareholders. The Corporation is a Mortgage Investment Corporation (MIC) as defined in the Income Tax Act (Canada). Accordingly, the Corporation is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the Corporation had been made directly by the shareholder. Full reports of the financial results of the Corporation are outlined in the financial statements and the related management discussion and analysis of the Corporation, available on the SEDAR website at www.sedar.com. In addition, supplemental information is available on the Corporation’s website at www.firmcapital.com.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute “forward-looking statements” within the meaning of applicable securities legislation, including, but not limited to, statements relating to future purchases of Common Shares and/or Debentures under the NCIB. Much of this information can be identified by words such as “expect to,” “expected,” “will,” “estimated” or similar expressions suggesting future outcomes or events. The Corporation believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those anticipated. These risks include, but are not limited to, risks associated with the Corporation’s financial condition and prospects; the stability of general economic and market conditions; interest rates; the underlying value of the Corporation and its Common Shares and Debentures; the ability of the Corporation to complete purchases under the NCIB; the availability of cash for repurchases of outstanding Common Shares and/or Debentures under the NCIB; the existence of alternative uses for the Corporation’s cash resources which may be superior to effecting repurchases under the NCIB; compliance by third parties with their contractual obligations; compliance with applicable laws and regulations pertaining to the NCIB; and other risks related to the Corporation’s business, including those identified in the Corporation’s most recent annual information form under the heading “Risk Factors” (a copy of which may be obtained at www.sedar.com) and subsequent filings. Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise.

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