The company has launched a new rights offering, available to eligible shareholders
MCAN Mortgage Corporation has announced a new rights offering that will aim to fund the expansion of its mortgage lending and investment business.
The rights will be available to eligible holders of the company’s common shares of record at the close of business today.
“Pursuant to the rights offering, each holder of common shares will receive one right for each common share held,” MCAN said. “Every 14 rights will entitle the holder to subscribe for one whole common share of the company at a price of $16.86 per common share.”
MCAN is expecting to raise gross proceeds of approximately $33.3 million from this offering. The transaction is anticipated to close by the second week of December, the company said.
Read more: MCAN Mortgage Corporation releases Q2 results
“As MCAN continues to show solid growth, we require capital in order to fund our core business,” said Karen Weaver, president and CEO. “Year-to-date growth in our corporate assets to September 30, 2021, was 30%. For the third year in a row, we will grow our corporate assets above our 10% target, and we look forward to further growth of our core business into 2022.”
Raising capital through a rights offering gives existing shareholders advantages in terms of the cost of capital raises and the value provided to them should they choose to subscribe, Weaver said.
“Over the years, our shareholders have supported and participated in our previous rights offerings, resulting in full subscriptions,” Weaver said.
MCAN’s top-level officials, collectively holding, directly and indirectly, approximately 1 million common shares, have indicated that they intend to exercise some or all of their rights, the company said.
The rights began trading on the Toronto Stock Exchange under the symbol MKP.RT on Friday, and will end trading at 12 p.m. EST on Dec. 8, MCAN said.
