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Mortgages

Firm Capital Mortgage Investment Corporation Upsizes Bought Deal Offering

Strategic Insights

— 2 min read

Firm Capital Mortgage Investment Corporation, through its mortgage banker Firm Capital Corporation, is pleased to announce that it has increased the size of its previously announced bought deal offering, aimed at raising $22,035,000. The offering, initiated to repay indebtedness and support general corporate purposes, will see the corporation issue 1,950,000 common shares at $11.30 per share. The underwriters have been granted an over-allotment option to purchase an additional 292,500 shares, potentially increasing the gross proceeds to $25,340,250. The net proceeds will be used to repay debt and support general corporate purposes. The offering is expected to close on or about August 8, 2024, subject to regulatory approval. The corporation has a history of investing in niche markets that are under-serviced by large lending institutions, with a focus on preserving shareholder equity and generating a stable stream of monthly dividends.

Key Takeaways:

  • The Firm Capital Mortgage Investment Corporation has upsized its bought deal offering, increasing the total amount of funds to be raised to $25,340,250.
  • The offering consists of the sale of 1,950,000 common shares at a price of $11.30 per share, with an additional 292,500 shares available for purchase through an over-allotment option.
  • The net proceeds from the offering will be used to repay indebtedness and support general corporate purposes.
  • The offering is expected to close on or about August 8, 2024, subject to regulatory approval.
  • The company's investment objective is the preservation of shareholders' equity, while providing shareholders with a stable stream of monthly dividends.
  • Firm Capital Mortgage Investment Corporation is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing.
  • The company's lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to shareholders.

Statistics:

  • Number of common shares to be sold: 1,950,000
  • Price per share: $11.30
  • Gross proceeds of the offering: $22,035,000 (before potential over-allotment)
  • Potential gross proceeds, including over-allotment: $25,340,250
  • Number of shares available for purchase through over-allotment option: 292,500
  • Date of expected closing: On or about August 8, 2024
  • Net proceeds of the offering: Used to repay indebtedness and support general corporate purposes

Sources:

  • GlobeNewswire, "Firm Capital Mortgage Investment Corporation Announces Upsizing of Previously Announced Bought Deal Offering"
  • SEDAR+ website, Firm Capital Mortgage Investment Corporation's current Annual Information Form
  • Firm Capital Mortgage Investment Corporation's website, www.firmcapital.com
  • TD Securities Inc. contact information, 1625 Tech Avenue, Mississauga, Ontario L4W 5P5, (289) 360-2009, sdcconfirms@td.com

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