Firm Capital Mortgage Investment Corporation Announces $20,000,000 Convertible Debenture Financing

Strategic Insights -

The Corporation is pleased to announce its entry into an agreement to sell, on a bought deal basis, $20,000,000 aggregate principal amount of 5.50% convertible unsecured subordinated debentures due December 31, 2032, at a price of $1,000 per Debenture. The net proceeds of the offering will be used for debt repayment and for general corporate purposes. This financing is a part of the Corporation's efforts to strengthen its balance sheet and provide a stable stream of monthly dividends to its shareholders.

Key Takeaways:

  • The Corporation has entered into an agreement to sell $20,000,000 aggregate principal amount of 5.50% convertible unsecured subordinated debentures due December 31, 2032, at a price of $1,000 per Debenture.
  • The net proceeds of the offering will be used for debt repayment and for general corporate purposes, demonstrating the Corporation's commitment to strengthening its balance sheet and preserving shareholder equity.
  • The Debentures will bear interest at a rate of 5.50% per annum, payable semi-annually in arrears, and will have a Maturity Date of December 31, 2032.
  • The Debentures will be convertible at the holder's option into common shares of the Corporation at any time prior to the Maturity Date, with a conversion price of $14.06 per Share.
  • The Corporation has granted the underwriters an over-allotment option to purchase up to $3,000,000 additional aggregate principal amount of Debentures, exercisable until 30 days following the closing of the offering.
  • The offering is expected to close on or about October 14, 2025, and is subject to certain conditions, including receipt of all necessary regulatory approvals.
  • The Debentures will be direct, unsecured obligations of the Corporation, subordinated to senior indebtedness of the Corporation, and ranking pari-passu with the Corporation's existing convertible unsecured subordinated debentures.
  • The Corporation will have the right to repay the outstanding principal amount of the Debentures, on maturity or redemption, through the issuance of Shares.

Statistics:

  • Total gross proceeds of the offering, including the over-allotment option, will total $23,000,000 if exercised in full.
  • Net proceeds of the offering will be used for debt repayment and for general corporate purposes, with a total of $20,000,000 from the sale of the Debentures and an additional $3,000,000 from the exercise of the over-allotment option.
  • The Debentures will bear interest at a rate of 5.50% per annum, payable semi-annually in arrears.
  • The Debentures will have a Maturity Date of December 31, 2032.
  • The conversion price of the Debentures is $14.06 per Share.

Sources:

  • Globe News Wire, "Firm Capital Mortgage Investment Corporation Announces $20,000,000 Convertible Debenture Financing", October 06, 2025.
  • Firm Capital Mortgage Investment Corporation's press release, available on SEDAR+ at www.sedarplus.ca.