The company's 2021 rights offerings were consistently oversubscribed
MCAN Mortgage Corporation has announced that its just-completed rights offering was oversubscribed by approximately 1.4 times its initial volume.
The rights offering to eligible holders of MCAN’s shares involved the issuance of 1,974,729 common shares valued at $16.86 apiece, for aggregate gross proceeds of $33.3 million. The company said that it intends to use all of the proceeds, with offering expenses deducted, to fund its mortgage lending and investment business.
Following the completion of this offering, MCAN has 29,620,939 common shares issued and outstanding.
“We are very pleased with our capital raise. This is our second one this year and it reflects our commitment to growth, in line with our risk appetite,” said Karen Weaver, president and chief executive officer of MCAN.
Read more: MCAN Mortgage Corporation to raise funds for lending and investment business
MCAN’s first rights offering of 2021, which concluded in mid-June, was oversubscribed by 2.96 times its initial volume. The company’s last capital raise prior to the two this year was back in 2015.
MCAN’s rights offerings show “continued strong support from our existing shareholders,” Weaver said. “We are focused on sustainable growth, reliable dividends and increasing return on equity to continue to provide improving shareholder return over the mid-term.”
