Firm Capital Mortgage Investment Corporation Announces $ 22 Million Binding Offer

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TORONTO, Oct. 12, 2021 (GLOBE NEWSWIRE) – Firm Capital Mortgage Investment Corporation (the “Company” (TSX: FC) is pleased to announce that the Company, together with Eli Dadouch, Jonathan Mair and Michael Warner (the “” Selling Shareholders “), have entered into an agreement (the” Agreement “) to sell, on a bought deal basis, to a syndicate of underwriters maintained by TD Securities Inc., National Bank Financial Inc. and Marchés des CIBC Capital, 1,482,000 common shares of the Company (the “Shares”) at a price of $ 14.85 per Share (the “Issue Price”) for gross proceeds of $ 22,007,700.

Under the terms of the agreement, 1,012,000 shares will be issued from the Company’s treasury for gross proceeds of approximately $ 15 million (the “Cash Offer”) and a total of 470,000 shares will be sold by shareholders. Sellers for aggregate gross proceeds to Selling Shareholders of approximately $ 7 million (the “Secondary Offering”). The net proceeds of the cash placement will be used to repay debt and for general corporate purposes. The Company will not receive any proceeds from the sale of shares related to the Secondary Offering. The Company has also granted the underwriters an over-allotment option allowing them to purchase up to 222,300 shares at the issue price which may be exercised, in whole or in part, at any time up to 30 days following the closing of the placement. If the Over-Allotment Option is exercised in full, the gross proceeds of the Cash Offering and the Secondary Offering will be approximately $ 18 million and $ 7 million, respectively.

The offering is expected to close on or around November 1, 2021 and is subject to certain conditions, including, but not limited to, receipt of all necessary regulatory approvals.

A preliminary short form prospectus will be filed no later than October 18, 2021 with securities regulators in all provinces of Canada. No securities regulatory authority has approved or disapproved of the contents of this press release. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities law, and may not be offered, sold or delivered, directly or indirectly, in the United States. , its possessions and other matters under its jurisdiction or in, or on behalf of or for the benefit of, a person of the United States, unless an exemption from registration is available. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

About the company

Where do mortgage transactions take place®

The Company, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing short-term residential and commercial bridge finance and conventional real estate finance, including construction, mezzanine and equity investments. The Company’s investment objective is to preserve shareholders’ equity, while providing shareholders with a stable flow of monthly dividends from investments. The Company achieves its investment objectives by investing in selected niche markets which are underserved by large credit institutions. The lending business to date continues to develop a diversified mortgage portfolio, producing a stable return for shareholders. The Company is a mortgage investment company (MIS) within the meaning of the Income Tax Act (Canada). Therefore, the Company 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 of each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same situation as if the mortgage investments made by the Company had been made directly by the shareholder. Full reports of the Company’s financial results for the year are set out in the Company’s audited financial statements and related MD&A, available on the SEDAR website at www.sedar.com. In addition, additional information is available on the Company’s website at www.firmcapital.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of applicable securities laws, including, among others, statements associated with the ability to meet regulatory, stock exchange and commercial conditions for the closing of the offering, the intended use of the proceeds of the offering, the closing date of the offering, the uncertainty associated with accessing the financial markets and statements relating to the activities of the Company, including those contained in the Company’s annual information form for the year ended December 31, 2020, as well as statements regarding management’s opinions, estimates and intentions, and similar statements regarding anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements can generally be identified by the use of forward-looking terms such as “outlook”, “objective”, “may”, “will”, “expect”, “intention”, “estimate”, “anticipate”. “,” Believe “,” should “,” plan “or” continue “or similar expressions suggesting future results or events. These forward-looking statements reflect the current beliefs of management and are based on information currently available to management.

These statements are not guarantees and are based on our estimates and assumptions which are subject to risks and uncertainties, including those described in the Company’s annual information form for the year ended December 31, 2020 under the heading ” risk ”(a copy of which can be obtained at www.sedar.com). These risks and uncertainties include, among others, risks associated with public health crises (including COVID-19), mortgages, reliance on the Company’s mortgage manager and banker, competition for mortgages, real estate values, interest rate fluctuations, environmental issues, shareholders liability and the introduction of new tax rules. Significant factors or assumptions that have been applied in drawing a conclusion or making an estimate set out in the forward-looking information include, among other things, that the Company is able to invest in mortgages at rates consistent with rates achieved in the past. , adequate mortgage investment opportunities are presented to the Company, adequate bank indebtedness and bank loans are available to the Company, and an insignificant impact resulting from the COVID-19 pandemic. Although the forward-looking information contained in this new press release is based on what management considers reasonable assumptions, there can be no assurance that actual results and performance will be consistent with these forward-looking statements.

All forward-looking statements contained in this press release are qualified by these cautionary statements. Except as required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

For more information, please contact:
Closed-end mortgage investment company
Eli Dadouch
President and CEO
(416) 635-0221

Boutique® Mortgage Lenders

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