Move will allow the company to offer and issues up to $250m of shares and securities
Firm Capital Mortgage Investment Corporation has announced that it has filed a preliminary short form base shelf prospectus with the securities regulatory authorities in all provinces of Canada that will, upon a receipt being issued for the Corporation’s (final) short form base shelf prospectus, allow the Corporation to offer and issue up to $250 million of common shares, preferred shares, debt securities, subscription receipts, warrants or units, or any combination of such securities, over a 25-month period.
The preliminary short form base shelf prospectus has not yet become final for the purpose of the sale of securities. When securities covered by the (final) short form base shelf prospectus are offered for sale, a prospectus supplement containing terms of these securities will be filed.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities covered by the base shelf prospectus have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in 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, unless an exemption from registration is available.
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.
Firm Capital 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.
