Proceeds to fuel growth in mortgage and construction lending
MCAN Mortgage has closed its overnight marketed offering of common shares.
The mortgage investment company issued 1,868,750 common shares at $15.40, raising a total of $28,778,750. This includes the proceeds from the fully exercised over-allotment option granted to the underwriters.
MCAN plans to use the net proceeds to expand its residential mortgage and construction lending business.
"We are very pleased with the success of this offering," MCAN chief executive Don Coulter said in a media release. “We were able to upsize the deal and receive full exercise of the over-allotment option. These proceeds will allow MCAN to continue growing its business as we have consistently done over many years."
The offering was made across Canada (excluding Québec) and followed regulatory requirements, according to the company.
Read next: Big Six Canada banks: How concerning are climbing credit loss provisions?
Canaccord Genuity Corp. and BMO Nesbitt Burns co-led the offering. The syndicate of underwriters also included CIBC World Markets, National Bank Financial, RBC Dominion Securities, Scotia Capital, Raymond James, Desjardins Securities, and iA Private Wealth. Goodmans represented MCAN Mortgage Corporation, while Blake, Cassels, and Graydon acted as legal counsel for the underwriters.
MCAN, dba MCAN Financial Group, is a publicly listed company on the Toronto Stock Exchange and operates as a reporting issuer across all Canadian provinces and territories. It qualifies as a mortgage investment corporation (MIC) and is the country’s largest federally regulated MIC.
Read more: Making a house a home: INVIS & Mortgage Intelligence’s new president on cornerstone of success
The company focuses on generating income through investments in Canadian mortgages, including residential, construction, commercial loans, and other investments.
MCAN also engages in other securities, loans, and real estate investments. Leveraging its operations, MCAN issues term deposits eligible for Canada Deposit Insurance Corporation deposit insurance, which allows it to invest in communities and homes for Canadians.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
